Implication Of Dynamic Environment For Organization Strategy Commerce Essay


The strategic management of enterprise is a dynamic process in which the enterprise determines its mission, sets the goal according to the external environment and internal management elements, ensures the implementation of the goal and realizes the mission of the enterprise (Dorling, 2009). Strategic management concerns the establishment and plan of the strategy; and it is a continuous management according to the change of the external environment and internal condition. This essay will firstly have some description about the implication of dynamic environment for organization strategy. Following this, it will give some explanation of strategic mission and the relationship between it and strategic planning. Finally, it will introduce some strategic planning tools.

Implication of dynamic environment for organization strategy

Strategy has great significance for the development and survival of the enterprise, so the change of strategy in dynamic environment is also a crucial problem, especially in the situation where the business environment becomes more dynamic and complicated. Dynamic environment refers to the consistency of a series of environment such as macro-economic environment, industrial environment, enterprise internal environment, political environment and social environment is changing all the time (Martin, 2011). In recent years, the competition between enterprises is fiercer and fiercer. The industry and environment of the enterprise is changing in the complicated and dynamic process. So the development of enterprise is actually the dynamic process. In this situation, the goal of establishing and implementing the strategy is to achieve the consistency of internal condition and external environment. The dynamic environment promotes the change of enterprise strategy whose core lies in environment change and organizational adjustment. In addition, not only the strategy should be improved, the manager and all the staffs should learn how to adopt the dynamic environment. In all, the dynamics and complexity of the environment and the uncertainty of future elements will make the establishment and management of the strategy become more difficult.

Mission analysis

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The mission is also important in the operation and management of the enterprise. The mission refers to the role and responsibility of enterprise in social and economic development and it is the positioning of the survival purpose of the enterprise (Bamford&West, 2011). Enterprise mission establishes a basic guiding ideology, principle, direction and business philosophy for enterprise. Not a specific strategic target, it explains the business field and ideas of the enterprise, which can provide basis for the setting of goal and establishment of strategy. It also summarizes the values of customers, shareholders and employees. Strategic planning is a process of establishing the long-term goal of the enterprise and putting it to practice (Charles W.L.&Gareth R, 2010). The mission is the source of strategic planning. If there isn't correct mission, though the strategic planning is implemented effectively, the existence of the enterprise is itself a mistake. Whether the mission is accurate or innovative will affect the plan of competitive strategy and other strategic elements. So the strategic planning should base on the mission, which is also important for the success of the enterprise.

Brief introduction of strategic planning tool

Strategic planning tools are indispensable for analyzing the business situation and establishing the strategy. There are several tools provided for the strategic planning, including Porter's five forces model, Portfolio planning tool and BCG matrix approach and so on. Porter's five forces model is used for analyzing the competition and making proper competitive planning. The forces include suppler bargaining power, buyer bargaining power, potential new entrants, threat of substitute product, and the rivalries and they determine five sources of competition. Different combination of the five forces can affect the final interests of the enterprise. Portfolio planning tool can provide reasonable asset allocation plan for the enterprise. It can also help managers to make good use of organizational resources in the fierce competition, which is benefit to reduce the risk and cost. It is useful for the multiple operation of the enterprise. One of the most popular ways to make strategic planning is BCG matrix. Every strategic business unit is signed in a two-dimensional matrix chart to show which SBU can provide high potential returns and which is the funnel of organizational resources. The essence of BCG is to realize the balance of enterprise's cash flow through the combination optimization of the business. BCG matrix is simple and clear; it can evaluate interests of enterprise business field through two objective standards including market growth and enterprise's market share. Product portfolio can also be arranged appropriately under the limited resources through the matrix analysis.


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In all, strategic management can be defined as an art and science which concern how to establish, implement and evaluate enterprise strategy to ensure the realization of the goal. Environmental analysis is the key link and element in the management. Successful strategy is the strategy that adapts to the environment. Correct establishment of the mission, goal and strategy is also important for the success of enterprise. Of course, proper strategy planning tool should also be used by the enterprise.