Strategic Management in Turbulent Times

Turbulences are becoming an increasingly common phenomena in today’s business world. They create more opportunities for companies to gain or lose leadership positions than at any other time. During these times, the balance between ‘operative measures’ and ‘strategic direction setting’ becomes critical. The proper selection of measures highly depends on a strategic assessment that accounts for the firm’s strategic and financial situation as well as the impact of the economic turbulence on the respective industry. There are some guiding thoughts that are valid for any company in an economic turbulent situation. First and foremost, managerial attention has to focus on the full potential of the core business. As a next step, evaluating adjacent moves is especially promising if a “repeatable model” for growth can be discovered. When turbulences affect the profit pool in an extreme way, the redefinition of a firm’s core business is required. In this respect, strategic management in turbulent times has a lot to do with the productive handling of contradictions (e.g., exploitation of existing and exploration of new capabilities). Research and management have to identify and assess how to implement a complementary way that will enable individuals as well as organizations to benefit from this constructive tension.