MIDLANDS STATE UNIVERSITY

HUMAN RESOURCES DEPARTMENT

Name: Dube Velisiwe Debra

Reg No: R0434271

Programme: MSC Human Resource Management

Module: Organisational Analysis (MHRM 709)

Lecturer: Doctor L. Maunganidze

Due Date 30 April 2013

Assignment Question

Question 3. The value of all strategies, no matter how brilliant, decays over time. This has led
some strategic planners to build planned obsolescence into their strategies (Abell, D
1978).Discuss the implications of this contention for Organizational Analysis.
Introduction

This paper will interrogate the value of strategies over time, it will also qualify Abell’ quotation
which says no matter how brilliant, the strategies decay over time, and this has led to some
strategic planners to build planned obsolescence into their strategies. Examples globally will be
drawn to validate this notion and reasons for such rigidity will be revealed .In discussing this
notion the author will borrow from other models like the industry model which asserts that there
are stages that a product or an organization has to go through in its existence as such, strategies
have to be revised from time to time to suit the stage in which the organisation operates in at that
given time. It is true that strategy decays and there are four ways in which business strategies
decay, by being replicated, supplanted, exhausted or eviscerated. Organisational analysis
becomes an imperative panacea to organisations, as it is a process by which an organisation’
systems, capacity and functionality are assessed in a bid to increase the organisation’ efficiency,
performance and output. This paper will discuss all the aspects above.
.

Causes of implementing obsolescent strategies

The environment in which businesses operate in is fluid and turbulent. Christenson (2006) says
that the social and business values around the world are changing dramatically making it
challenging to foresee the consumer business environment. The business environment is affected
by the Political Economic, Social and Technological changes that occur from time to time and
are never static. The macro environment tends to have an effect on the crafting and
implementation of strategies. Since the macro environment is ever changing it tends to be naïve
for organisations to hold on to strategies that have been crafted a long time ago, because as the
environment changes the business strategies also need to change in order to move with the times.
However, organisations find it very difficult to deal with the snowballing rate of change in the
multifaceted global industries they find themselves in. Keeping up with the pace of change
becomes more and more complex .Usually a lot of funds are invested in strategies which
becomes difficult to abort before inception. In some instances these strategies are founded by
very renowned and honourable people in the organisation which becomes very difficult to just
throw away those strategies. Hamel (2003) says that successful companies, particularly those that
have enjoyed a relatively benign environment
, find it extra ordinarily difficult to reinvent their business models. When confronted with
paradigm busting turbulence , they often experience a deep and prolonged reversal of fortune.

In some instances these strategies are perpetuated because they have worked in the past. Tichy
(1983) says that because we are all beings of habit, we tend to repeat what we are comfortable
with. This tends to constrain our creativity and prevents us from exploring new ideas .According
to Christensen (2006) since renewal often lags, decay advocates that corporate leaders regularly
miss or deny the signs of strategy decay. This certainly shows that there are implications to
organizational analysis.
.

Implications of the contention for Organizational Analysis

According to the business Dictionary organizational analysis is the process of reviewing the
development, work environment, personnel and operation of business or any other type of
association. This contention that says, the value of all strategies, no matter how brilliant, decays
over time. This has led some strategic planners to build planned obsolescence into their
strategies (Abell,D 1978) is evident that organisations should embark on periodic detailed
organizational analysis , this will be helpful to identify any signs of decay in strategy, which
could be discovered through replication, supplantation, exhaustion and evisceration. In so doing
possible means of dealing with problems will be identified and organisations will keep on
flourishing.

Abell (1978) describes strategic windows and emphasizes the importance of timing both the
entrance and exit of any given strategy. In the Zimbabwean context one perfect example of an
organisation that have been able to do a constant organizational analysis is Econet.In the early
days Econet was expanding its network, there were Buddie cellphone lines and Business Partner
cellphone lines. When the market was saturated with lines from all direction like Telecel and
Netone,Econet was into 3G and selling of internet dongles .Then came the famous Eco cash
facility .Econet has been transiding in its businesses and their business is flourishing. The other
example is that of TN, it started as a furniture shop; lately it has diversified its operations to
Banking, Furniture and groceries, this clearly shows that what was a great idea yesterday can not
remain the same to date, reinvention is pivotal. Pscale (1990) says business should continuously
reinvent themselves. “Nothing fails like success”. That which was strength yesterday becomes
the root of weakness today. Today strategies must embolden a creative process of self-renewal.

The relationship between strategy and structure is essential. For organisations to deliver their
plans, the strategy and structure must be woven together flawlessly. The interaction between
strategy and structure results in great achievement.Organisational structures need to be designed
to meet the aims that are embedded in the strategy. Modern organisations like Coca Cola have
built flexible structures. Key strategic decisions at Coca Cola are made by an Executive
Committee of 12 company Officers. This committee helps to shape the organisation’ strategic
priorities. Strategy and structure are likened to a hand and a glove. Therefore, when
organizational analysis is being done there is need to look at the relationship that exists between
the strategy and the structure. Recently Sino-Zimbabwe Cement Company carried out its
organizational analysis, it was discovered that their strategy and their structure were not
compatible. Lately they are working towards restructuring, had they not worked towards
restructuring their structure there was likelihood that their productivity rate will be lower and
lower over time.

Drucker (1969) says it can not be assumed that the trends that exist today will continue into the
future. He identified four sources of discontinuity that were new technologies, globalization,
cultural pluralism and knowledge capital. It is essential that when organisations do their
organizational analysis look into these four sources. Alvin (1970) illustrates how the
technological norms had a shorter lifespan. It is therefore imperative to embark on constant
organizational analysis to identify areas that need attention.

Organisations in their existence go through a life cycle where there is infancy, adolescence,
maturity, senility and death. Essentially these stages of a life cycle will determine strategy.
Organisational strategies will have to be informed by the cycle. The concept of planned
obsolescence as a producer’ trick to push consumers into purchasing new versions that has been
replaced. An example is that of sunlight washing powder, there came a time when it was
experiencing stiff competition with other powder soaps like OMO.It came up with a strategic of
having its washing powder enriched with a fabric softener. Such kinds of strategies are done with
the intention of pulling customers to the company. Organisations should continually do their
analysis in order to survive and be successful in their businesses.

Conclusion
This paper discussed Abell quotation that says, the value of all strategies, no matter how
brilliant, decays over time. This has led some strategic planners to build planned obsolescence
into their strategies (Abell, D 1978) extensively. It showed how organisations implement
strategies that are brilliant but already obsoscelent.The implications to organizational analysis
were also discussed in detail. It is without doubt that surely it is possible to implement
obsolescent strategies. Examples were given from various walks of life. It is therefore imperative
that organisations constantly do organizational analysis in order to adjust where necessary and
remain successful in their business endavours.
References:
Abell, D (1978) “Strategic windows”, Journal of Marketing, Vol. 42, page 21-28.
Christensen, R (2006) Roadmap to Strategic HR: Turning a great idea into a business reality,
AMACOM
Drucker, P (1969) The Age of Discontinuity, Heinemann, London
Hamel, G (2003) Strategy Decay and Environmental Activism
Pscale, R (1990) Managing on the Edge
Rowe, J (2008) Studying Strategy, Jim Rowe& Ventus Publishing
The Times 100 Business Case Studies
Tichy, N (1983) Managing Strategic Change Technical, Political and Cultural dynamics, John
Wiley New York
http://www.garyharmel.com/author.htm