MIDTERM EXAM (BBAF 18096648)
Strategy is an action a manager takes to reach one or more of the organization's
objectives. Strategy may also be described as "the overall course set for the business and its
various components in order to reach the ideal future state. The strategy comes from the
detailed process of strategic planning. The strategy provides a clear direction for the
organization based on the multiple goals of the organization, which directs the resource
management used to drive the organization towards these objectives. It provides a framework
for senior managers to take advantage of opportunities for the environment, to make full use
of their strengths, to overcome threats and to compensate for disadvantages and thus to make
decisions for companies.
First-order change in the organization include improvements to the existing content.
Usually, it means finding ways to do things more effectively. It leads to incremental
improvements that are consistent with the existing culture of the organization. That is the kind
of change that most organizations are striving to achieve.
Second-order changes include creating completely new things. It is characterized by
changes in behavior and calls for a new way of thinking. An example of this is a company
where some employees view themselves as service technicians, whose only job is to install
equipment and repair. For them, caring for customers is mandatory. As a result, it would be
useless to provide such employees with information on the importance of customer care, as this
information is inconsistent with their existing beliefs about themselves and roles. They ought
to adjust these views in order to consider themselves as "customer satisfaction", at this time,
taking care of consumers is a common and usual activity.
The first-order change is gradual. It includes improving existing things, while the
second-order change is more fundamental. It requires the development of new ideas to make it
possible to take previously difficult action.