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2.1.2 The changing environment

Competitive strategy must grow out of a sophisticated understanding of the rules of competition that determine an industry's attractiveness.

Michael Porter

The pace of organisational change varies and the change does not often come easily. An understanding of the economic, social and organisational environment in which you work can help you to anticipate and plan for change. While the pace of organisational change varies from industry to industry and even organisation to organisation, the overall pace of economic and social change in most modern societies has been substantial in the past ten years.

Consider this

Stop for a moment and think of an industry that responds to, even welcomes and drives change?

What comes to my mind is the information technology industry. Now compare that to the change in the different sections of the maritime transport industry - and the different attitude toward change.

In economics we have seen a greater interdependence of national economies. The public sector has seen major restructuring and moves towards corporatisation. There have been changes in skills expectations, emphasising the desirability of multi-skilling.

Social changes have seen the composition of the workforce altering with an emphasis on equity in employment. In Australia , the population is aging, and naturally so is the workforce, requiring human resource planning. We have also seen moves towards higher levels of education and an attitude of 'life long learning'.

Organisational changes have included flatter organisational structures, changing approaches to product development and marketing, increased emphasis on business ethics and access to information. There has also been emphasis placed on participative management, joint consultation and dispute settlement.

One notes that Australia has unique geographical and demographic characteristics, with vast distances between major centres and long sea and air links with the rest of the world.

Consider this

For those students studying outside Australia , stop for a moment and think about how your environment has changed in recent times and is continuing to change.

Think back to the industry examples, bearing in mind the types of external elements discussed in the preceding textbook reading. You are most likely to remember a situation where the impact from an external element on your organisation or section was overlooked and not handled as well as it might have been.

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