Pink and Seidman: Question 10
Deriving forces are the forces that influenced on an organization because of outside or external factors. These external factors trigger the change of an organizational strategy. Some dri8ving forces are specific and unique to a meticulous situation of the industry. Driving forces can be:
Change in the growth rate of the company at long run, increasing the globalization of the company, innovation in the design of products or in any system, technology changes, entry of new firms, market innovation, changes in efficiency and costs, risks of any type etc.
Link between strategy and driving forces:
The analysis o driving forces of an industry is very important for making strategy. The external factors that affect on the organization play a key role in changes the company’s situation in next two to three years. When a company form a strategy it should considered the external factors, it will help to make effective strategy. A direct link exists between driving forces and companies’ strategy.
As the seidman, advocates the new culture and want to bring innovation in the organization it should considered the driving forces. When an industry introduces a new system or culture, some employees resist against this new culture and they do not the new culture and innovation. Therefore, before implementing the new culture company must give the training to the employees, analyze the external factors, and then make the strategy.
The effect of value innovation on Pink:
Value innovation is more dramatic, less frequent than the market evolution. It is a case when a firm redefines its value of products through a breakthrough strategy or breakthrough technology such as; mobile phone is a value innovation’s example. Seidman wants to advocate the technology changes in the organization, wants to implement the new culture with innovation. It is an example value innovation.
In the job market and industries, the quality and quantity are the strong driving forces. Now the productivity is not a goal of the organization. Developed, developing and even underdeveloped countries are now focusing on the quality. In an industry, people with different demographics works together, it is necessary that industry treat them equally. To maintain a stable organizational culture play an important o gain competitive advantage.
Due to the globalization, all the economy of the world will gather at a single point. Globalization is a strong driving force that has deep affect on the organization. If a company changes its internal culture, according to the changes in external environment then company will be able to earn high. For example, provide the training facilities to the employees about the new technologies; provide good compensation to the employees to motivate them. Pink can gain the competitive advantage from the value creating products that never be matched with the products of competitors. Plan the strategy by analyze the external factors because external factors must influenced on the growth and environment of the organization. For example, company should upda