The purpose of this research is to use a conceptual model to analyze the capacity for strategic change and then apply the model to assess the change capacity in Electrolux¡¦s three major strategic changes. Through applying the model of capacity for change to analyze the change process of Electrolux, the author will research into the following problems:
• Why was the change initiated? By whom?
• Why was the specific strategy (the content of change) chosen? Who formulated it?
• What was the strategy for implementing the change (the process)? How was the implementation process conducted?
• Characterizing and evaluating the capacity for change in the case company.
After analyzing the strategic change and development of the Electrolux Group, the author found out the answers of the research problems and developed three major management implications, which are stated as follows:
(1) High path dependence between stages
After reviewing the development of Electrolux from longitudinal perspective, the author found that Electrolux development processes from stage to stage are characterized by high path dependence. The Group strives to build competitive advantages and realize the intended strategy in each stage in order to respond to the impacts resulted from the changes of external environment. Only competitive advantages and intended strategy of the current stage are built and realized will the company initiate a new strategy and proceed to next stage. Therefore, the shift into the next stage is influenced by two factors, namely, the realization of the stage-oriented intended strategy and the building of competitive advantages. Highly Path dependence from stage to stage characterizes the Electrolux¡¦s development stage model (see Figure 4.2).
(2) Operating/industry environment factors serve as the main driving forces behind change
After analyzing the development of Electrolux Group (see chapter 5), the author found environment factors serves as the main driving forces behind each change. In order to effectively respond to the impacts resulted from the environment changes and find a niche to grow, the organization has to closely monitor the environment changes. Only by recognizing the impacts resulted from environmental changes can organization decide the direction of corporate strategy and then evaluate whether the resources and capabilities the organization possesses can generate competitive advantage so as to realize intended strategy.
(3) Leadership strongly impact the formation of change process
As suggested in chapter 2.4, four internal factors i.e. leadership, structure, resources and capabilities, and culture would affect the change process (see Figure 2.2). After analyzing these internal factors affecting the change process of Electrolux, the author found that leadership serves as the main internal driving force in each change period. Though Electrolux¡¦s three major changes were mainly initiated by the external environment, the change process could not be implemented and the realized strategy could not be attained without the strategic leader who can clearly recognize and effectively react to the environment changes and adopt new strategic actions to realize the intended strategy in the end.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0620105-152528 |
| Date | 20 June 2005 |
| Creators | Chiou, Wen-Jing |
| Contributors | Pei-how Huang, Hsien-Tang Tsai, none, Cher-Min Fong |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0620105-152528 |
| Rights | restricted, Copyright information available at source archive |
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