Strategic practice Essay Example | Topics and Well Written Essays - 3000 words

Strategic practice - Essay Example A critical view has been presented throughout the essay giving a balanced argument about the pros and cons of strategy formulation and their execution in the presence of complexities. With globalization and thus multidimensional growth, organizations have tremendous opportunities of growth now open to them. Products and services have been expanded, growth is occurring in different countries and regions catering to consumers belonging to different cultures having varied needs. Thus firms are entering the industries as there are opportunities waiting for them. However, chasing these opportunities has is not a simple process and surround firms with complexity (Floyd and Lane, 2000, pp. 154-177). Expansion in such a multifaceted way involves complicated ways and devising strategies that would enable them to overcome the complexity hurdles. These complexity issues make things extremely difficult for the firms and things are disorganized. Taking â€Å"strategic complexity control† according to Hase & Brodnick, (2001) becomes imperative for firms to be able to operate successfully and to pursue their strategic objectives. Complexity theory has been used increasingly to manage firms strategically and to study the internal functions of organizations (Clark, 2004, pp.105–111). These theories enable firms to have a better understanding of their environment both internal and external and thus help them come up with more meaningful strategies (Mainzer, 1994). Complexity sciences are now being used to device and understand strategies and organizations. An American automotive OEM1 after 10 years of product explosion and outsourcing began having prominent operational losses, increase in the coat of warranties and complexities in their five R and D centers. They needed to regulate their product development to counter their increasing complexity costs.