Population Ecology
Institution Theory
Strategic Choice Perspective
Organizational Learning Theory
II. Creating a Learning Organization
Solving Problems Systematically
Experimenting with New Approaches
Learning from Experiences
Transferring Knowledge
III. Basic Model of Strategic Management
Environmental Scanning
Strategy Formulation
Strategy Implementation
Evaluation and Control
I. THEORIES OF ORGANIZATIONAL ADAPTATION
Nothing is constant in this world except the word change. Nowadays, everything has changed. And as time passes by, everything has constantly and continuously changing.
Globalization and environmental sustainability present real challenges to the strategic management of business corporations. Globalization, the integrated internationalization of markets and corporations, has changed the way modern corporations do business. Environmental Sustainability, theuse of business practices to reduce a company’s impact upon the natural, physical environment,also has an effect on company’s business decisions and operations.
The following are the various theories that have been proposed to explain on how organizations adapt or adjust with their environment:
POPULATION ECOLOGY- proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions. Thus, making it go into bankruptcy, and be outperformed by other companies who were able to adapt to the changing environment.
INSTITUTION THEORY-proposes that organizations can and do adapt in changing conditions by imitating other successful organizations. In here, companies tend to imitate an admired firm’s strategies and management techniques. However, this theory doesn’t explain how or by whom successful new strategies are developed.
STRATEGIC CHOICE PERSPECTIVE- proposes that not only do organizations adapt to a changing environment, but they also have the