The strategic management of sudden changes in the competitive environment: The case of the French dairy industry

• Main Author: Paulette Robic
• Format: Article
• Language: English
• Published: University of Split, Faculty of Economics 2003-01-01
• Series: Management : Journal of Contemporary Management Issues
• Subjects: strategic management; strategic organizational changes; diary industry; case study; France
• Online Access: http://hrcak.srce.hr/file/272131

The thesis defended is that sudden changes in the competitive environment constitutes more an opportunity than a constraint for pro-active companies. A neo-institutional framework is chosen to analyse the strategic management of such sudden changes. We focus on the sudden change in regulation the dairy industry experienced in 1984 (i.e. the restriction of raw materials by the fixing of milk quotas in 1984). The longitudinal study of a family dairy business – the Laconie society- complemented by a sectorial analysis has allowed us to analyse the effects of milk quotas on the strategy of these businesses. A phenomenon of coercive isomorphism is noted, as all the dairy firms launched into diversification. Simultaneously, we notice an obvious interaction between quotas (coercive institution)- and abilities and organizational identity (cognitive institution). Confronted to sudden changes in the competitive environment the firms have, of course, been forced to evolve. However, the firms which had based their preceding development on their ability to anticipate, innovate, and change their organizational identity have been able, in a later stage, to transform these constraints into opportunities. The interaction between the environment and the strategic policy of the firms is obvious. It originates, in particular, from the permanent involvement of the firm in the social and economic sphere, as well as its organizational identity and the manager’s family. The concepts of involvement, isomorphism and interaction between the environment and strategic policy are called upon to conduct this research.