Unit 5: 21st-Century Strategy
Researchers' interest in strategy has grown recently. The focus of many researchers has centered on the serious impact of using strategies in their organizations. For example, many organizations rely on psychology, specifically industrial psychology, to understand strategic planning in the business sector. In the past, managers assumed that all employees were motivated by the same factors. Therefore, leaders would offer the same rewards, such as paid time off or bonuses. They also assumed employees would behave similarly in the workplace based on motivation and encouragement. Managers now know that employees are unique and motivated by factors unique to their personalities and beliefs. Understanding a firm's culture and what motivates employees will allow strategic managers to extract more out of each individual.
Additionally, the idea of innovation as a strategic leader has complemented the competitive advantage strategy. There are issues with getting to the top of an industry by innovating and then falling behind to rising competitors. Collectively, these issues are known as the innovator's dilemma, and technology companies have been divided on how to avoid falling victim to this problem (as have many other industries). Companies may try to approach this dilemma by maintaining a high level of capital and simply acquiring other companies. Google and Microsoft used two well-known examples of this strategy. From 2007 through 2009, Google acquired 24 companies, and Microsoft acquired 34.
Finally, the diverse culture around the world is dramatically changing how we conduct business. Globalization encourages the world to recognize the importance of our global economy. Organizational leaders and managers must continually adapt to new strategies to create an inclusive and equitable workforce. The strategic manager must go beyond the borders of their own country to understand culture and diversity. Strategic management will require leaders to consider how to support their human capital beyond race and ethnicity. Strategic managers need to create space for diversity, including race, ethnicity, gender, sexual orientation, religion, age, disability, and socioeconomic status. The changes in technology have enabled even small companies of just a few people to outsource work to all corners of the world. A global view is critical for 21st-century leaders.
Completing this unit should take you approximately 2 hours.
5.1: Enterprise Culture
5.1.2: Managerial Theories
5.2.1: Sustained Innovation
5.2.2: Innovator's Dilemma
5.2.3: Research and Development
5.3: Global Strategy
These study sessions are an excellent way to review what you've learned so far and are presented by the professor who created the course. Watch these as you work through the unit and prepare to take the final exam.
Unit 5 Assessment
- Receive a grade
- Receive a grade