If an organizational history has been unwelcome to change in the past, it is highly unlikely that an organization will be willing to accept change in the future. Sometimes, core competency can assist in the process of change (Porter, 1980).
Lastly, at the individual level, the process of change is completed when it is implemented within a company. The task of the general manager then becomes of envisioning the future of the change and of facilitating cooperation among the workforce. He is also responsible for implementing change at various levels of production, development and distribution. In particular, what needs to be examined is with what speed change ought to be brought into the company and how businesses will strive to attain it. Company employees may sometimes favor change in certain areas but can be opposed to other types of change in the rest of the divisions. In this case, it is beneficial to alter the type of changes sought after by the company instead of changing the way of implementation (Porter, 1980).
Managing the Industry Environment
Strategic management is one of the primary concerns and tasks of the general managers which includes setting the direction and goals and allocating resources efficiently so that unwanted costs are avoided and the targets achieved (Chandler, 1963).
The general managers are required to be far-sighted so that threats and opportunities for the business can be identified and their operations adjusted with these external events while putting strategies into practice (Mintzberg & Waters, 1985). Other companies in the industry need also be considered while drawing up and following strategies.
Thorough Industry Analysis
Change can be referred to as novelty or originality or anything new, in general. It can also refer to the changes within the company, even if it is the last company in the industry to adopt the change already initiated in other organizations. These are the two opposite extreme cases with regard to change and in reality; cases will dwell between these two extremes. These cases call for competitor's attention and it is essential to know how the competitors are responding to change (Porter, 1980).
Porter (1980) identified some of the key forces that operate in the industry's environment which are now, highly considered while drawing up business strategies. Porter claims that general managers should not only look out for present competitor's strategy and behavior to change but they should also look after those firms that could enter the industry and bring in more competition.
Porter also claims that a third kind of force, that is, substitute products need also be identified while pursuing business strategies and implementing change. Sometimes, even the present competitors can become a serious threat, if they take advantage of change and find other substitutes and start manufacturing it (Porter, 1980).
The basic idea of Porter's recommendation is that a company needs to look out for its competitors and the possibility of substitute products and general managers should deal with it accordingly. The general manager should also contemplate about the customer's views and opinions concerning a product or a service of different companies, so as to bring improvement. Generally, for this purpose, a marketing analysis is carried out by specialists but this research can be very helpful for the general manager, who should have the big picture of the industry in mind while setting and implementing important business policies related to change (Porter, 1980).
Timing of Change
Generally, if a company brings in change before the other competitors have time to do so, it can avail some major competitive advantages and customers will be largely attracted. For instance, in a pharmaceutical industry, allowing patents to medicines ensures that competitors can not come in while the industry can enjoy high-level profits. Likewise, in the software business, there are copyrights to restrict the entrance of competitors (Porter, 1980).
If the product finds favor with customers, it is likely to generate loyalty who might stick to the company even after the entrance of other firms. Therefore, the company who introduces change first can take advantage of all these situations and can ensure a long-term standing for its company (Porter, 1980).
While appraising change for investment and other purposes, general managers sometimes need to be reassured that their company will actually be the first one to implement the change in the industry. For this information, research is carried out on the competitors, their willingness to implement change and their current plans. Michael Porter has also highlighted a number of ways through...
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