Strategic Change at Chrysler
Strategic Change:
The case study of Daimler Chrysler
Introduction
Globalization results in rapid and constant business environmental changes. As a result, most organizations tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of Daimler Chrysler case study; whether the strategic change by merger bring them sustainable competitive advantage.
Nature of strategic change
The causes of strategic change
To be effective transformation organization, a company needs to be ready for incessant change of outside and also inside circumstances. The factors which lead to strategic change in organization are categorized as external environment, including competitor’s movement, governmental regulation, trade constraint, economic situation, information technology advance and market infrastructure: such as accessibility and cost of supply (Appelbaum et al., 1998); (Brock et al., 2005); (Douglas and Wind, 2001) and internal environment containing new vision and operation, bringing new technology in institute, new CEO, organizational culture, and merger and acquisition (Appelbaum et al., 1998). For example, multinational companies need to adjust the way they do business to fit with each marketplace in order to succeed their businesses by maintaining the global standard in terms of the components of marketing mix, such as quality of products. In contrast, some policies of management, such as human resource management, distribution procedure, pricing and advertising, must be adapted to agree with local law and culture (Douglas and Wind, 2001). Moreover, contemporary business system which has been becoming more globalization, rapidly and continuously change in technology industry, and higher degree of competition in each industry, forces organizations
The case study of Daimler Chrysler
Introduction
Globalization results in rapid and constant business environmental changes. As a result, most organizations tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of Daimler Chrysler case study; whether the strategic change by merger bring them sustainable competitive advantage.
Nature of strategic change
The causes of strategic change
To be effective transformation organization, a company needs to be ready for incessant change of outside and also inside circumstances. The factors which lead to strategic change in organization are categorized as external environment, including competitor’s movement, governmental regulation, trade constraint, economic situation, information technology advance and market infrastructure: such as accessibility and cost of supply (Appelbaum et al., 1998); (Brock et al., 2005); (Douglas and Wind, 2001) and internal environment containing new vision and operation, bringing new technology in institute, new CEO, organizational culture, and merger and acquisition (Appelbaum et al., 1998). For example, multinational companies need to adjust the way they do business to fit with each marketplace in order to succeed their businesses by maintaining the global standard in terms of the components of marketing mix, such as quality of products. In contrast, some policies of management, such as human resource management, distribution procedure, pricing and advertising, must be adapted to agree with local law and culture (Douglas and Wind, 2001). Moreover, contemporary business system which has been becoming more globalization, rapidly and continuously change in technology industry, and higher degree of competition in each industry, forces organizations
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