Managing Strategic Change Aegon
Contents
Question 1 : Strategic Drift 3
Question 2: Discuss the external factors that influenced change within AEGON 7
Question 3: Critically Discuss the 8 behaviours 11
Question 4: Evaluate the role of the Auditing Process business strategy 14
Appendix 1 15
2006 financial highlights AEGON in the UK 15
References 16
Question 1 : Strategic Drift
Thompson, Stickland and Gamble (2005) suggest that an organisational strategy should not be perceived as a fixed plan that the organisation utilises to compete within industry but rather view an organisational strategy as a temporary plan of action which is ever evolving to incorporate external environmental influences and internal organisational influences. As organisations continue to evolve their strategic plans due to internal and external stimulus, identified by Thompson et al (2005), organisations drift from the original strategic vision of the organisation.
Sony Corporation a leader in consumer electronic since early 1990, appoints a new CEO in
1995. The CEO believes in an integrated technologies model and steers the organisation into trying to find a way in making this business model profitable.
Charles Handy (1989) described strategic drift as the subtle changes of the organisations strategy that leads the organisation away from its intended destination to a destination that is unintended. Organisations must ensure alignment between the organisations operational activities, through adjustments in the organisations strategy, and the environment within which the organisation operates.
Sony Corporation virtually abandons the consumer electronic business model and in doing so failed to capitalised on the opportunities presented in flat panelled television , mobile devices rather allowing competitors to fulfil the gap and become more of a threat in a once dominant market. Ken Belson,(2005,[A]), Sony corporation have been losing value since 1995 under the
Question 1 : Strategic Drift 3
Question 2: Discuss the external factors that influenced change within AEGON 7
Question 3: Critically Discuss the 8 behaviours 11
Question 4: Evaluate the role of the Auditing Process business strategy 14
Appendix 1 15
2006 financial highlights AEGON in the UK 15
References 16
Question 1 : Strategic Drift
Thompson, Stickland and Gamble (2005) suggest that an organisational strategy should not be perceived as a fixed plan that the organisation utilises to compete within industry but rather view an organisational strategy as a temporary plan of action which is ever evolving to incorporate external environmental influences and internal organisational influences. As organisations continue to evolve their strategic plans due to internal and external stimulus, identified by Thompson et al (2005), organisations drift from the original strategic vision of the organisation.
Sony Corporation a leader in consumer electronic since early 1990, appoints a new CEO in
1995. The CEO believes in an integrated technologies model and steers the organisation into trying to find a way in making this business model profitable.
Charles Handy (1989) described strategic drift as the subtle changes of the organisations strategy that leads the organisation away from its intended destination to a destination that is unintended. Organisations must ensure alignment between the organisations operational activities, through adjustments in the organisations strategy, and the environment within which the organisation operates.
Sony Corporation virtually abandons the consumer electronic business model and in doing so failed to capitalised on the opportunities presented in flat panelled television , mobile devices rather allowing competitors to fulfil the gap and become more of a threat in a once dominant market. Ken Belson,(2005,[A]), Sony corporation have been losing value since 1995 under the
References: 1. Charles Handy, The Age of Unreason, Hutchinson, London, 1989. 2. Arthur Thompson, A Strickland and John Gamble, Crafting and Executing Strategy 15th Ed, McGraw-Hill, New York,2005 3. Colin Egan,Creating Organizational Advantage, Butterworth-Heinemann Ltd, 2000 4. Rick Delbridge, Lynda Gratton, Gerry Johnson, Making a difference, Oxford University Press, 2006 5. Ken Belson, An Executive Who Could Not Bring the Company Into Focus With His Vision, 2005, New York Times 6. Paul Johnson, Winning Customers and increasing market share, 2007 , USA 7. Robin Fincham and Peter Rhodes , Principles of Organizational Behaviour (?) 8. Edward Christensen and George Gordon. An Exploration of Industry, Culture and Revenue Growth Organization Studies, 1999 9. Unknown , www.Ageon.co.uk, 2008 10. Donald Brown and Don Harvey , An experiential approach to organizational development, 2006 11. Paul Tailor , Marketing Environment PEST/STEP analysis, 2006