
The problem is that these phenomena are becoming immune to the traditional medicine in the world of strategy development. Only through a better understanding of the growth dynamics of organizations and leadership needs do we have a chance of formulating an appropriate response. Let me briefly examine the nature of these phenomena. External factors that go haywire Organizations are continuously challenged by the forces that Michael Porter identified. And yet, substitute products, supplier pressure, price competition and the entrance of new competitors take organizations by surprise. When leaders and their staff subsequently hurry to formulate an adequate response, stress is induced.
Unfortunately, in economies and markets that are developing in unexpected ways, the fact-driven countermeasures, that Porter and others suggest, do not really deliver the expected results. As the rules of the business game are constantly challenged by economies and companies alike, the facts simply no longer reflect the future.
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