Much of the literature suggests that strategies are formulated in light of perceived environment conditions and internal capabilities. This study supports the notion that strategy is formulated in part as a response to management uncertainties about competitors, customers, and the environment. Responses from 137 wholesale grocers demonstrate that uncertainty varies by generic strategy, suggesting that business consider both the type and degree of uncertainty when crafting a competitive strategy.
Purpose -This paper aims to present the results of an exploratory study of the organizational life cycle. Rather than approaching the construct from a small-or large-firm perspective, a model appropriate for all organizations is employed. Design/methodology/approach -A survey was administered to 107 practicing managers to determine life cycle stage of their organizations and environmental scanning pursuits. Findings -The study revealed that small firms are not only found in the first two life cycle stagesexistence and survival -but also in the decline stage. In addition, support was not found for environmental scanning patterns previously postulated in the literature. Practical implications -Managers of SMEs who wish to grow their organizations must understand the Gestalt changes necessary for successful progression to a large organization. Originality/value -One life cycle model is appropriate for all organizations and can be utilized as a transition guide for strategic managers who recognize that their decisions are the real determinants of life cycle stage.
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