4 PHASES OF STRATEGIC DRIFT

Question 1

PHASE 1 INCREMENTAL CHANGE

Answer 1

Remains competitive, incremental changes in strategy made in line with external environment.

Question 2

PHASE 2 STRATEGIC DRIFT

Answer 2

Begins to appear as incremental changes fail to keep up with a faster rate of change in external environment.

Question 3

PHASE 3 FLUX

Answer 3

Management recognises strategic drift due to poorer performance and tries to make strategic changes, however there is no clear direction, disagreements can occur leading to poorer performance and increased drift from external environment.

Question 4

PHASE 4 TRANSFORMATIONAL CHANGE OR DEMISE

Answer 4

Final phase where organisation either fails completely (demise) or undertakes transformational change to realign itself with external environment.