Strategic renewal includes the process, content, and outcome of refreshment or replacement of attributes of an organization that have the potential to substantially affect its long-term prospects. (Agarwal and Helfat, 2009)
Four tests for deciding whether your company is ripe for strategic renewal:
1. Your profits are dominated by maturing businesses in which you see limited opportunities for growth.
2. There is a direct threat to your core source of profits.
3. An attractive opportunity is outside your core markets.
4. New ways of making money by some firms are a threat to your core source of profits.
Strategic Renewal of Organizations
Organization Science, March April 2009 pp. 281-293
Strategic renewal is indicated by analysis of firm's external environment.