January 29, 2014

Strategic Renewal

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.

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