Importance of Strategic Management

Explanation of Relevant Concepts, Theories, and Applications Derived from Course Materials

Harley, in this instance hence embodies the theory of population ecology whereby after successfully establishing itself as a brand that represents individuality and freedom, the company has been unable to grow out of this niche and adapt to changing conditions. The company has not changed in any significant manner, and its financial performance has been on the decline. The company is yet to become a learning organization which is necessary if it has hopes of remaining competitive in a dynamic environment. Strategic management is necessary for learning organizations to avoid stagnation and grow through self-examination and experimentation (Wheelen, Hunger, Hoffman, & Bamford, 2017). In Harley's case, however, the company's efforts have not been successful, implying that the company may not be in tune with its environment and is hence unable to capitalize on market shifts to gain more leverage in the market. A changing environment is a danger to any company and has been responsible for the fall of many great companies, including Kodak and Nokia. A lot of pioneering businesses have been pushed out of the market due to their inability to adapt to their environment and change (Wheelen et al., 2017). This is based on the fact a changing environment creates new opportunities while destroying old ones, and for organizations to be successful, they need to remain in tune with their external environment since the operating environment of every business tends to be more uncertain with each passing year. This is based on the concept of environmental uncertainty that comes with technological advancements and market and product changes that businesses must keep up with to remain competitive (Wheelen et al.