BU398 Lecture Notes - Lecture 13: 3Com
Document Summary
Organizational decline is a condition in which a substantial, absolute decrease in an organization"s resource base occurs over a period of time. It is often associated with environmental decline in the sense that an organizational domain experiences either a reduction in size or shape. 3 factors are considered to cause organizational decline: organizational atrophy. Occurs when organizations grow older and become inefficient and overly bureaucratized. Organization"s ability to adapt to its environment deteriorates. Often, it follows a long period of success, which it takes advantage of and fails to adapt to the new environment. For example, blockbuster had trouble adapting to the new world of video-on-demand and digital downloading: vulnerability. Reflects an organization"s strategic inability to prosper in its environment. Often happens to small organizations that aren"t fully established. They are vulnerable to shifts in consumer tastes or in the economic health of the larger community.
