Strategy and organizational evolution
Article first published online: 16 FEB 2007
Copyright © 1993 John Wiley & Sons, Ltd.
Strategic Management Journal
Special Issue: Special Issue
Volume 14, Issue S2, pages 131–142, Winter 1993
How to Cite
Simon, H. A. (1993), Strategy and organizational evolution. Strat. Mgmt. J., 14: 131–142. doi: 10.1002/smj.4250141011
- Issue published online: 16 FEB 2007
- Article first published online: 16 FEB 2007
- Defense Advanced Research Projects Agency
- comparative advantage;
- attention focus in planning;
- design of alternatives
A business firm's ‘niche’ or comparative advantage typically has a half-life of years rather than decades. Strategic planning must assure a stream of new ideas that allow the firm to find new sources of comparative advantage. Strategic planning must focus attention on the initial stages of the decision-making processes—opportunities and occasions for choice, and the design of new action strategies for products, marketing, and financing. Product identification and alternative generation are crucial components of strategy. Strategic thinking must permeate the entire organization. Effective identification of employees with the organization's strategy requires their exposure to the basic postulates that underlie strategic plans.