Developing Organizational Strategy Assignment Sample

Explore the principles, challenges, and practical strategies for developing and implementing effective organizational strategies.

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Introduction Of Developing Organizational Strategy Assignment

The report on Developing Organizational Strategy is aimed at exploring the principles and challenges associated with the development and implementation of an effective organizational strategy (Hillmann and Guenther, 2021). It is divided into two tasks, each with its own specific objectives. Task 1 focuses on the principles of developing organizational strategy. This includes an overview of the critical analysis of principles that drive the development of organizational strategy, as well as the challenges that come with leading and implementing these strategies. Additionally, the report explores the factors that drive the development of organizational strategy, such as market trends, competition, and organizational goals. Task 2 focuses on the practical application of the principles discussed in Task 1. Specifically, it involves developing an organizational strategy to achieve a business objective and making recommendations for its successful implementation and monitoring. This includes outlining the steps involved in developing the strategy, identifying potential risks and opportunities, and providing recommendations for effectively monitoring and adjusting the strategy as needed.

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The report will discuss about principles of developing organizational strategy in Starbucks. Starbucks is a global coffeehouse chain that was founded in Seattle, Washington in 1971. The company operates over 33,000 stores worldwide and serves a wide range of hot and cold drinks, including coffee, tea, and various other beverages. Starbucks is known for its unique and high-quality coffee blends, as well as its inviting and comfortable atmosphere, which often includes free Wi-Fi and ample seating (Hanelt, et. al. 2021).

Task 1

Write the principles of the developing organizational strategy

Developing an organizational strategy is a complex and dynamic process that involves various principles. Some key principles for developing an organizational strategy:

  • Vision and Mission: The first principle of developing an organizational strategy is to define a clear and compelling vision and mission statement. The vision and mission statements should align with the core values and principles of the organization, and provide a clear direction for its future.
  • SWOT Analysis: Conducting a comprehensive SWOT analysis is critical for developing an effective organizational strategy (Isensee, et. al. 2020). This analysis helps to identify the organization's strengths, weaknesses, opportunities and threats, which inform the development of strategic goals and objectives.
  • Setting Objectives: The third principle of developing an organizational strategy is to set clear and measurable objectives that align with the organization's vision and mission statement. These objectives should be realistic, attainable and relevant to the organization's overall strategy.
  • Resource Allocation: Resource allocation is another critical principle of developing an organizational strategy. This involves identifying the resources required to achieve the strategic objectives and allocating them effectively to ensure that the organization has the necessary resources to achieve its goals.
  • Continuous Improvement: Developing an organizational strategy is an ongoing process, and continuous improvement is a critical principle of this process (Lokuge, et. al. 2019). The organization should regularly review its strategy and adjust it as needed to ensure that it remains relevant and effective in achieving its goals.
  • Communication and Collaboration: Communication and collaboration are essential principles of developing an organizational strategy. All stakeholders, including employees, customers, partners, and investors, should be involved in the development of the strategy and kept informed of progress and changes.
  • Monitoring and Evaluation: The final principle of developing an organizational strategy is to establish a robust monitoring and evaluation system (Hamadamin and Atan, 2019). This system helps to track progress towards the strategic objectives, identify areas that require improvement, and ensure that the organization is on track to achieve its goals.

For example, Starbucks is known for its strong brand identity and innovative approach to business. The company has developed a set of principles that guide its approach to developing and leading organizational strategy:

  • Customer-centricity: Starbucks places the customer at the center of its strategy. The company is focused on creating a unique and memorable experience for its customers, from the quality of its coffee to the ambiance of its stores.
  • Innovation: Starbucks is committed to innovation in all areas of its business, from product development to technology to store design (Kelly and Cordeiro, 2020). The company encourages its employees to think creatively and come up with new ideas to stay ahead of the competition.
  • Sustainability: Starbucks recognizes the importance of sustainability and has made a significant commitment to reducing its environmental impact. This includes sourcing ethically and sustainably grown coffee, reducing waste, and investing in renewable energy.
  • Partnerships: Starbucks values partnerships and collaboration, both internally and externally. The company works closely with its suppliers, employees, and local communities to achieve its goals and create positive change.
  • Employee empowerment: Starbucks believes in empowering its employees and giving them the tools and resources they need to succeed (Bryson and George, 2020). The company provides extensive training and development opportunities and encourages its employees to take ownership of their roles.
  • Data-driven decision-making: Starbucks uses data to inform its decision-making process. The company collects and analyzes data on customer behavior, market trends, and store performance to make informed decisions about its strategy.
  • Strategy development for critical analyses

Developing a strategy for an organization involves a systematic process that includes several steps. Here is a general framework for developing a strategy:

Step 1: Conduct a Situation Analysis

The first step in developing a strategy is to conduct a comprehensive analysis of the organization's internal and external environment. This involves evaluating the organization's current situation, including its internal strengths and weaknesses, as well as external opportunities and threats. This analysis can be done using tools such as SWOT analysis or PESTLE analysis.

Step 2: Define the Vision and Mission

Based on the situation analysis, the organization should define its vision and mission (Suárez, et. al. 2019). the vision statement should articulate the organization's long-term goals, while the mission statement should describe the organization's purpose, values, and strategy for achieving its vision.

Step 3: Set Objectives

The organization should set specific objectives that align with the vision and mission. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). Objectives can be set for various areas such as financial performance, customer satisfaction, employee engagement, and sustainability.

Step 4: Develop Strategies

Once the objectives are set, the organization should develop strategies for achieving them. Strategies can include initiatives such as new product development, market expansion, process improvement, talent development, and digital transformation. Strategies should be aligned with the organization's strengths, weaknesses, opportunities, and threats.

Step 5: Allocate Resources

The organization should allocate resources, including financial and human resources, to support the implementation of its strategies (Moktadir, et. al. 2020). The resource allocation should be based on the priorities and the potential impact of each strategy on the organization's objectives.

Step 6: Implement and Monitor

The organization should implement its strategies and monitor their progress. This involves setting up a system for tracking and measuring performance against the objectives and making adjustments as needed. Continuous monitoring and evaluation can help the organization to identify issues and opportunities and make necessary changes to its strategy.

For example, Starbucks is a global coffeehouse chain that has been successful in developing an organizational strategy that aligns with its vision and mission. Here is a critical analysis of the principles that drive the development of Starbucks' organizational strategy:

  • Vision and Mission: Starbucks' vision and mission are centered on providing a unique coffee experience that promotes a sense of community, environmental sustainability, and social responsibility. The company's mission statement reads, "To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time." This principle has been critical to the development of Starbucks' strategy and has helped the company establish a unique brand identity that sets it apart from competitors.
  • SWOT Analysis: Starbucks regularly conducts a SWOT analysis to evaluate its strengths, weaknesses, opportunities, and threats. The company has identified several strengths, including its strong brand identity, talented workforce, and high-quality products (da Costa Fernandes, et. al. 2020). However, the company also faces weaknesses, including a high dependence on a few key products and a narrow focus on the coffee industry. Despite these weaknesses, Starbucks has successfully leveraged its opportunities, such as expanding its product line and its global presence.
  • Setting Objectives: Starbucks has set clear and measurable objectives that align with its vision and mission. These objectives include increasing revenue and profitability, expanding its customer base, and enhancing its environmental sustainability. Starbucks' objective to reduce its environmental footprint is an example of how the company has aligned its objectives with its vision and mission (Benzaghta, et. al. 2021).
  • Resource Allocation: Starbucks has allocated its resources effectively to support the implementation of its strategies. For example, the company invests heavily in its employees'

The challenges of developing and leading organizational strategy

Starbucks is a global coffeehouse chain that operates in over 80 countries with more than 32,000 stores worldwide. Developing and leading organizational strategy at Starbucks is a complex and challenging process. Here are some of the challenges faced by Starbucks in this regard:

  • Changing consumer preferences: One of the biggest challenges faced by Starbucks is the rapidly changing consumer preferences in the food and beverage industry. Consumers are looking for more sustainable and ethically sourced products, and Starbucks has to adapt to these changing trends while also maintaining its brand identity.
  • Competition: Starbucks operates in a highly competitive industry, with both global and local competitors vying for market share. Developing a strategy that sets Starbucks apart from its competitors is critical to maintaining its market position.
  • Geographic diversity: Starbucks operates in a large number of countries, each with its own unique culture, language, and business environment (Velenturf and Purnell, 2021). Developing and leading organizational strategy across such a diverse geography can be challenging.
  • Supply chain management: As a global business, Starbucks must manage a complex and integrated supply chain that spans multiple countries and continents. Ensuring the reliability, quality, and sustainability of its supply chain is critical to Starbucks' success.
  • Technology: Technology is transforming the food and beverage industry, and Starbucks must continually adapt to new technologies to stay ahead of the curve. This includes developing and implementing innovative payment systems, mobile apps, and digital marketing strategies.

Despite these challenges, Starbucks has been successful in developing and leading its organizational strategy. For example, in recent years, Starbucks has focused on expanding its digital offerings, including mobile ordering and delivery services, to better meet the needs of its customers. It has also made a significant commitment to sustainability, including the use of ethically sourced coffee and reducing waste in its stores. These initiatives have helped Starbucks maintain its position as a leading global coffeehouse chain.

Factors deriving the development of organizational strategy

There are several factors that can drive the development of an organizational strategy. Here are some key ones:

  • Mission and vision: The mission and vision of an organization play a crucial role in shaping its strategy. The mission and vision define the organization's purpose and provide a direction for its activities. The strategy should align with the mission and vision of the organization.
  • External environment: The external environment includes factors such as competition, regulatory changes, technological advancements, and economic conditions. The organization's strategy must consider these factors and adapt accordingly.
  • Internal resources: An organization's resources, such as its people, financial capital, technology, and infrastructure, are critical in shaping its strategy (George, et. al. 2019). The organization needs to assess its strengths and weaknesses and leverage its resources to achieve its objectives.
  • Stakeholder expectations: Stakeholders, including customers, employees, investors, and partners, have expectations of the organization. The organization's strategy should take these expectations into account and align with them.
  • Leadership and culture: The leadership and culture of an organization play a significant role in shaping its strategy (Borges, et. al. 2021). The leadership team's values, beliefs, and priorities can influence the direction and focus of the organization's strategy.
  • Performance data: An organization's performance data, such as financial metrics, customer feedback, and employee satisfaction, can provide insights into its strengths and weaknesses. The organization can use this data to develop a strategy that addresses its challenges and leverages its strengths.

For example, Starbucks has always focused on providing a unique and differentiated customer experience. Its strategy is centered on creating a welcoming and cozy atmosphere in its stores, providing high-quality coffee and food, and offering personalized service to its customers. This has been a key factor in Starbucks' success. Starbucks has established a strong brand identity through its consistent use of the green and white logo, its commitment to ethical and sustainable sourcing, and its support of local communities. The brand identity has helped Starbucks to differentiate itself from competitors and build customer loyalty. Starbucks has expanded rapidly into new markets around the world. The company's strategy has been to tailor its products and services to local tastes and preferences, while maintaining its core values and brand identity (Klofsten, et. al. 2019). This has helped Starbucks to successfully enter and grow in new markets. Starbucks has been innovative in introducing new products and services to its customers, such as the introduction of the Frappuccino and the launch of the Starbucks Rewards program. Starbucks has also been an early adopter of new technology, such as mobile payments and digital ordering, to enhance the customer experience. Starbucks has a strong commitment to employee engagement, recognizing that its employees are critical to its success. The company's strategy is focused on creating a supportive and inclusive workplace culture, providing training and development opportunities, and offering competitive compensation and benefits (Cortellazzo, et. al. 2019). Starbucks has a strong commitment to environmental sustainability, with a goal of reducing its carbon footprint and increasing its use of renewable energy sources. This has been a key factor in shaping the company's strategy, with a focus on sustainable sourcing, waste reduction, and energy efficiency.

Task 2

Develop an organizational strategy to achieve a business objective

  • Expand product line: Introducing new products that align with core competencies and target market needs. Conduct market research to identify potential new product offerings, and develop a product launch plan that includes marketing and sales strategies.
  • Improve customer experience: Enhancing the customer experience by improving customer service, store design, and product quality (Nambisan, et. al. 2019). Training employees on customer service best practices, conduct surveys to gather customer feedback, and use this information to improve the overall customer experience.
  • Increase sales channels: Exploring new sales channels, such as e-commerce and partnerships with other retailers. Developing a plan for expanding our online presence, and partner with complementary businesses to expand reach.

Organizational strategy to achieve a business objective

Organizational Strategy Implementation Recommendations Monitoring Recommendations
Expand product line
  • Conduct market research to identify potential new product offerings that align with Starbucks' core competencies and target market needs. Develop a product launch plan that includes marketing and sales strategies.
  • Track sales of new products and conduct customer surveys to gather feedback on the products (Caldera, et. al. 2019). Monitor marketing and sales metrics to evaluate the success of the product launch.
Improve customer experience
  • Train employees on customer service best practices, conduct surveys to gather customer feedback, and use this information to improve the overall customer experience. Enhance store design and product quality to create a welcoming and comfortable atmosphere.
  • Monitor customer satisfaction metrics, such as Net Promoter Score (NPS) and customer loyalty, to evaluate the success of customer experience initiatives. Conduct regular store audits to ensure that store design and product quality meet Starbucks' standards.
Increase sales channels
  • Develop a plan for expanding Starbucks' online presence, including e-commerce and partnerships with other retailers. Expand Starbucks' reach by partnering with complementary businesses.
  • Monitor online sales metrics, such as website traffic and conversion rates, to evaluate the success of the e-commerce strategy (Sousa and Rocha, 2019). Track sales from partnership deals to evaluate the effectiveness of these initiatives.
Enhance marketing efforts
  • Increase Starbucks' marketing budget to develop new campaigns and initiatives. Use customer data to target marketing efforts to specific segments (Abbas, 2020). Develop partnerships with influencers to increase brand awareness.
  • Monitor marketing metrics, such as return on investment (ROI) and customer engagement, to evaluate the success of marketing initiatives. Conduct customer surveys to gather feedback on marketing campaigns.

Overall, these strategies and recommendations are tailored to help Starbucks achieve its business objective of increasing revenue by 10% within the next 12 months. By expanding its product line, improving the customer experience, increasing sales channels, and enhancing marketing efforts, Starbucks can drive growth and increase revenue. Monitoring the success of these initiatives will help Starbucks to adjust its strategy as needed to achieve its business objectives.

Organizational Strategy

  • Market Research: Conduct market research to identify customer needs, preferences, and behaviors. Use this information to identify opportunities to differentiate the company's products or services from its competitors, and to identify areas where the company can improve its competitive position.
  • Product and Service Development: Use the insights gained from the market research to develop new products or services that meet the needs of customers and differentiate the company from its competitors (García-Sánchez and García-Sánchez, 2020). Ensure that these products or services are of high quality, and provide a superior customer experience.
  • Sales and Marketing: Develop a comprehensive sales and marketing strategy that focuses on the company's unique value proposition, and effectively communicates this value to target customers. Use a combination of advertising, public relations, and social media marketing to build brand awareness and drive sales.
  • Partnerships and Alliances: Identify strategic partnerships and alliances that can help the company to reach new customers or expand its market share. This could include collaborations with other companies in the same industry, or with complementary businesses in related industries.
  • Customer Service: Provide exceptional customer service to ensure that customers are satisfied with the company's products or services (Haseeb, et. al. 2019). This includes timely and efficient customer support, as well as ongoing engagement to gather feedback and identify areas for improvement.

Implementation Recommendations:

  • Conduct regular market research to stay informed about changes in customer preferences and behaviors, and to identify new opportunities for growth.
  • Develop a product or service development plan that prioritizes customer needs and preferences, and ensure that these products or services are of high quality and provide a superior customer experience.
  • Invest in a comprehensive sales and marketing strategy that effectively communicates the company's value proposition to target customers, and use a combination of advertising, public relations, and social media marketing to build brand awareness and drive sales.
  • Identify strategic partnerships and alliances that can help the company to reach new customers or expand its market share, and work collaboratively with these partners to achieve shared goals.
  • Provide exceptional customer service to ensure that customers are satisfied with the company's products or services, and continuously monitor customer satisfaction metrics to identify areas for improvement.

Monitoring Recommendations:

Track changes in market share over time to evaluate the success of the organizational strategy.

Conduct regular customer surveys to gather feedback on the company's products or services, and use this information to inform product or service development initiatives.

Monitor sales and marketing metrics, such as conversion rates and return on investment, to evaluate the effectiveness of sales and marketing initiatives (Namugenyi, et. al. 2019).

Track the success of strategic partnerships and alliances, and adjust the organizational strategy as needed to ensure that these partnerships are effectively driving growth and expanding market share.

Monitor customer satisfaction metrics, such as Net Promoter Score (NPS) and customer loyalty, to evaluate the success of customer service initiatives and identify areas for improvement.

Recommended approach to implement

Type of approach selected

Starbucks, being a large and complex organization, uses a combination of approaches to implement and monitor its strategy to ensure its success. Here are some of the approaches used by Starbucks:

  • Balanced Scorecard: Starbucks uses a balanced scorecard approach to monitor its strategy. The balanced scorecard approach measures the performance of an organization in four key areas: financial, customer, internal processes, and learning and growth. Starbucks uses this approach to ensure that its strategy is aligned with its mission and values.
  • Key Performance Indicators (KPIs): Starbucks uses KPIs to track progress towards its strategy. These KPIs include metrics such as revenue growth, same-store sales growth, customer satisfaction, and employee engagement. Starbucks uses these KPIs to monitor its progress and identify areas for improvement.
  • Continuous Improvement: Starbucks continuously seeks to improve its processes and operations to ensure that its strategy is successful. Starbucks uses lean management techniques to eliminate waste and increase efficiency. Additionally, Starbucks invests in technology to improve its customer experience, such as its mobile ordering app.
  • Training and Development: Starbucks invests in the training and development of its employees to ensure that they have the skills and knowledge necessary to implement its strategy successfully (Chanias, et. al. 2019). Starbucks offers its employees training in areas such as coffee-making, customer service, and leadership development.
  • Regular Reviews: Starbucks conducts regular reviews of its strategy to ensure that it remains relevant and effective. Starbucks uses a combination of internal reviews and external consulting firms to evaluate its strategy and make necessary adjustments.
  • In the case of the organizational strategy to increase market share, the iterative approach could be applied as follows:
  • Plan: Identify specific tasks or projects, such as conducting market research, developing new products or services, investing in sales and marketing initiatives, and forming strategic partnerships and alliances.
  • Implement: Execute the tasks or projects, while collecting data and feedback to evaluate progress. This could include launching new products or services, running advertising or social media campaigns, and forming partnerships with other businesses.
  • Evaluate: Analyze the results of the tasks or projects, such as sales metrics, customer feedback, and market share data. Compare these results against the desired outcomes and the overall business objective of increasing market share by 5%.
  • Adjust: Use the results of the evaluation to adjust the plan and tasks or projects. For example, if a particular marketing campaign was not as effective as anticipated, adjust the messaging or targeting to improve its performance.

Key process and activities required to implement strategy

Implementing a strategy involves a series of key processes and activities that need to be carefully planned and executed. Here are some of the key processes and activities required to implement strategy:

  • Strategic planning: This is the initial process of developing a strategic plan that outlines the objectives, goals, and initiatives required to achieve them.
  • Resource allocation: After developing the strategic plan, the next step is to allocate resources such as people, finances, and technology to execute the plan.
  • Organizational design: The organizational structure must be designed to support the implementation of the strategy. This includes creating new roles, restructuring existing ones, and defining decision-making authority.
  • Communication: Communication is essential to ensure that everyone understands the strategy, their roles, and what is expected of them (Enke and Borchers, 2019). Effective communication also helps to create a shared vision and enthusiasm for the strategy.
  • Performance management: Implementing a strategy requires tracking progress against key performance indicators (KPIs) to ensure that the plan is on track and to identify areas that need improvement.
  • Continuous improvement: Continuous improvement is an ongoing process of evaluating the effectiveness of the strategy and making adjustments to improve outcomes.
  • Change management: Implementing a new strategy often involves changes to processes, systems, and culture. Change management involves preparing people for the change, providing training and support, and addressing resistance.
  • Execution: Finally, executing the strategy requires careful coordination of all the processes and activities, ensuring that the right people are doing the right things at the right time.

Monitoring activities selected to ensure the success of the strategy

Monitoring activities are critical to ensuring the success of a strategy. They help organizations to track progress, identify areas of improvement, and make necessary adjustments to achieve their goals. Here are some activities that can be implemented to ensure the success of a strategy:

  • Key Performance Indicators (KPIs): Identify the most important metrics for measuring progress towards your strategy. These could include financial metrics, customer satisfaction, employee engagement, or operational efficiency.
  • Regular Progress Reports: Regularly review progress towards the strategy through status reports. This will enable you to track the progress and address any potential issues.
  • Team Meetings: Schedule regular team meetings to discuss progress towards the strategy (Warner and Wäger, 2019). These meetings can help identify obstacles or challenges and allow the team to collaborate on solutions.
  • Customer Feedback: Regularly seek feedback from customers to ensure that the strategy is meeting their needs and expectations.
  • Employee Feedback: Regularly seek feedback from employees to ensure that the strategy is achievable and aligns with their goals and values.
  • Benchmarking: Compare your organization's performance against other companies in the same industry. This will help you identify best practices and opportunities for improvement.
  • Risk Management: Identify and monitor potential risks to the strategy and develop contingency plans to mitigate them.
  • By implementing these activities, organizations can ensure that their strategy is on track and make any necessary adjustments to ensure its success.

Conclusion

In conclusion, the development of an effective organizational strategy is essential for achieving business objectives and maintaining a competitive edge in today's ever-evolving business landscape. The report on Developing Organizational Strategy has explored the principles and challenges associated with this process, providing valuable insights and recommendations for organizations seeking to succeed in this area. Overall, the report emphasizes the importance of strategic planning and effective implementation in achieving business success. By following the principles and recommendations outlined in the report, organizations can develop and implement strategies that will help them achieve their objectives and thrive in today's competitive business environment.

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