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08:06
By Paulette Short


The one outstanding characteristic of the modern world is the fact that things changes quickly, unexpectedly and that such changes can easily bring about vast changes in the way business is conducted. It is therefore in the interest of all organizations to be aware of changes that are likely to occur. Strategic insight allows companies to react in time and to take advantage of changes within their operating environments.

Most large businesses employ specialists that focus upon the study of environmental change. These environments include political, social, technological and financial trends, amongst others. Changes in those environments affect the way that business is conducted, the products and services demanded by consumers and the way in which business is regulated. It is therefore very important to develop operating strategies that will make provision for such changes.

One of the biggest challenges when devising long term strategies is to deal with the incredible pace of change. Not only do things change quickly, but the nature of change is also very difficult. Many innovative companies keep their new technological developments under wraps, for example and it is tricky to foresee them and their possible uses in gaining or maintaining a competitive advantage.

It would be of no value to an organization to study change without making plans to take advantage of those changes. That is why it is so important to analyze anticipated changes in terms of the impact it will have on the business. The environments that are crucial include the financial, political, technological and social environments. Plans need to be devised to take advantage of changes in those arenas.

One of the most difficult aspects of devising a strategy is to analyze the strengths and weaknesses of the organization honestly. It is necessary to determine the strengths that can be used to take advantage of environmental changes but it is equally important to identify those factors that can prevent a business to benefit from change. Such an analysis often forms the core of a long term plan.

Long term strategies need to be translated into more specific action plans. That is why most organizations have systems in place where broad strategies are given to individual business units who then has the task to translate those strategies into specific action plans that makes provision for the allocation of resources. Eventually, those plans filter through to teams that need to formulate exact objectives that will contribute towards the overall strategy.

Without a strategy to make provision for environmental changes no business can hope to survive in the long term. It requires specialist knowledge to correctly interpret trends but money spent in this way inevitably allows organizations to thrive. This is because they are made ready to embrace change and to use it to their own advantage. However, strategies need to be as realistic as possible and they need to be based upon as many facts as possible.

Strategic insight is extraordinary difficult to obtain. It requires the skills of many professionals that are experts in the various fields that have an impact upon the way business is done. It is an expensive exercise, but vital. Without operating strategies businesses simply will not survive.




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