Essay on Managing Strategic Change Aegon

3848 Words Feb 24th, 2008 16 Pages
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
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Delbridge (2006) suggest organisations must be responsive and proactive when trying to employ an organisational strategy. By doing so the organisation completes continuous change this ensures that strategic drift is minimised else the organisation may find a radical change is needed, resulting in discontinuous change and a radical transformation of the organisation.

An organisation participating in continuous change, such as Intel that knowingly abandoned future non-profitable markets in an attempt to ensure organisation survival and profitability is less likely to suffer the effects of strategic drift and more likely to survive the environment in comparison to an organisation facing radical change, Sony Corporation that knowingly abandoned profitable markets seeking to prove a business model which did not offer any profitable rewards. Strategic drift does indeed take an organisation blind to the drift, to unintended destinations, sometimes this may be fortuitous for the organisations survival but according to Delbridge (2006) , of the FTSE 100 only 23 organisations that have held dominant positions in the last decade still exist, strategic drift is a force that must be well considered. Question 2: Discuss the external factors that influenced

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