“Nothing is Permanent Except Change”, one of the most common sayings that we hear and we least likely to apply it in the corporate world, but was proven to be true by several business gurus. Changing their strategies helps organizations deal with the environment better. With this ever changing trends nowadays, no business should stick to their old ways and tactics for them to avoid being stagnant. The fall of several businesses has been caused not by doing the wrong things but by doing the right things which no longer fit the reality.
As stated in the article entitled, “Harvard Business Review”, “Some theories of the business are so powerful that they last for a long time. But eventually everyone becomes obsolete.” Business owners must test the validity of their practices and routines from time to time in order for them to adjust their ways on running the organization in align with the changes in the environment. Preventive care must always be observed and they have to learn how to abandon the theories that are already invalid for them to be able to avoid being overtaken by events.
To prove this further, Kaushik Roy and Pradyumana Khokhle stated in their work entitled “Integrating Resource-based and Rational Contingency Views: Understanding the Design of Dynamic Capabilities of Organizations” that “In dynamic capability framework, rapidly changing environment, an organization can achieve sustained competitive advantages by creating, extending or altering pre-existing organizational capabilities (Teece, Pisano and Shuan, 1997; Winler, 2003)”. This framework suggests that business owners have to develop theories that are closely linked to technological and functional areas so that they will be able to to address the challenges that has been brought by the changes in the environment.
Roy and Khokhle have continued, “Awareness of the environment is an imperative that keeps an organization informed of the realms of possibility in their retaining strategic formula derived form understanding the goal-resource linkages or thinking of amending it in the light of new environmental realities”. Acquiring a competitive advantage is the goal of all businesses. And in order for them to get hold of this, constant updating their ways, tactics and theories is a must.
Business owners must be willing to learn continuously and it must also be necessary that they test the validity of their theories routinely. Trends in the business world change every now and then. And it is one of the hardest jobs of the managers to get along with these trends. Strategies must be planned rigorously on how to attain a sustainable competitive advantage. But once the organization has been used to these ways, leadership among all organizations will be attained.
