Strategic decisions in turbulent times:Lessons from the energy industry

Giones, Ferran and Brem, Alexander and Berger, Andreas,(2019), Strategic decisions in turbulent times:Lessons from the energy industry. , Business Horizons, UNSPECIFIED

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Most of the firms currently in the S&P 500 probably will not be there in 15 years. In times of great uncertainty, managers are called upon to make the right strategic choices, preserve core businesses, and prepare their organizations for the future. How can managers make these choices when the industry is under transformation?In this article,we explore how thepopular VUCA framework can helptomake sense of turbulent contexts and drive the decision making of managers. We study the case of the energy industry, in which traditional business models eroded quickly and dominant players lost their positions. Based on personal interviews with the CEOs of RWE (Germany) andNRGEnergy (U.S.), we analyze how these executives led transformation oftheir organizations. We get immersed in their decision-making processes and depict how the VUCA framework helps them to identify, map, and prepare their organizations to respond to the volatility, uncertainty, complexity, and ambiguity in theirindustry. We propose a guide for executive managers to navigate through VUCA contexts,taking into account the necessity to introduce short- and long-term responses that prepare organizations and stakeholders for an uncertain future
Keywords : Business strategy,Decision-making process, Market turbulence,VUCAEnergy industry, Organizational change, Energiewende, UNSPECIFIED
Journal or Publication Title: Business Horizons
Volume: 62
Number: 2
Item Type: Article
Subjects: Manajemen
Depositing User: Endhar Priyo Utomo
Date Deposited: 23 Dec 2019 07:59
Last Modified: 23 Dec 2019 07:59

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