Evolutionary cycles

Full Answer Section This pattern of evolutionary cycles is common in many firms. Some examples of global firms that have experienced this pattern include:

• IBM: IBM was once the dominant player in the mainframe computer market. However, as the market changed, IBM's structure became a liability. The company was slow to adapt to the new market conditions, and it eventually lost its market share to competitors.
• GE: GE was once a diversified conglomerate. However, in recent years, the company has been reshaping its strategy and structure. GE is now focused on a smaller number of core businesses, and it is streamlining its operations.
• Microsoft: Microsoft was once the dominant player in the personal computer software market. However, as the market changed, Microsoft's structure became a liability. The company was slow to adapt to the new market conditions, and it eventually lost its market share to competitors.

These are just a few examples of global firms that have experienced evolutionary cycles in which there is a fight between strategy and structure. These cycles are a natural part of business, and they can be a sign of a healthy organization. However, if a firm is unable to adapt to change, it may be forced to reshape its strategy and structure in order to regain its competitive edge. CEO of a prominent firm that exemplifies the positive aspects of strategic leadership: One CEO of a prominent firm that I believe exemplifies the positive aspects of strategic leadership is Jeff Bezos, the CEO of Amazon. Bezos has been praised for his ability to develop and execute long-term strategies that have helped Amazon become one of the most successful companies in the world. One of Bezos's most notable strategic moves was to invest heavily in e-commerce. This was a risky move at the time, as the internet was still in its early stages. However, Bezos saw the potential of e-commerce, and he was willing to take a risk on it. This investment has paid off handsomely for Amazon, as the company is now the world's largest online retailer. Another example of Bezos's strategic leadership is his focus on innovation. Amazon is constantly innovating, and it is always looking for new ways to improve its products and services. This focus on innovation has helped Amazon stay ahead of the competition, and it has allowed the company to grow its business at an impressive rate. Actions that Bezos has taken that demonstrate effective strategic leadership:

• Investing in e-commerce: As mentioned above, Bezos was one of the first CEOs to see the potential of e-commerce. He invested heavily in this area, and it has paid off handsomely for Amazon.
• Focusing on innovation: Amazon is constantly innovating, and it is always looking for new ways to improve its products and services. This focus on innovation has helped Amazon stay ahead of the competition, and it has allowed the company to grow its business at an impressive rate.
• Building a strong culture: Amazon has a strong culture of innovation and customer focus. This culture has helped the company attract and retain top talent, and it has also helped the company to develop and execute its strategies effectively.

Effects of those actions on the firm's performance: The actions that Bezos has taken have had a significant positive impact on Amazon's performance. The company has grown its revenue and profits at an impressive rate, and it has become one of the most successful companies in the world. Bezos's strategic leadership has been a key factor in Amazon's success.

Sample Answer ere is an explanation of why firms experience evolutionary cycles in which there is a fight between strategy and structure, punctuated with periods in which strategy and structure are reshaped:

• Strategy: This is the plan that a firm has for how it will achieve its goals. It includes decisions about what products or services the firm will offer, who its target customers will be, and how it will compete in the marketplace.
• Structure: This is the way that a firm is organized. It includes decisions about how tasks will be divided up, who will have authority over whom, and how information will flow through the organization.

In a perfect world, strategy and structure would be perfectly aligned. However, in reality, there is often a tension between the two. This is because strategy is constantly changing, as the firm adapts to new market conditions and opportunities. However, structure is often more resistant to change. This can lead to a situation where the firm's structure is no longer aligned with its strategy. When this happens, the firm may experience a period of inertia. This is a period where the firm is unable to adapt to change and is therefore at a competitive disadvantage. Eventually, the firm will be forced to reshape its strategy and structure in order to regain its competitive edge.