Importance of Organizational Dynamics and Strategic Planning for Business


My organization, which specializes in the production of crude oil, failed to adapt to the fluctuation of the market by not focusing on the long-term strategy. In this instance, the organization performed the layoff, but reducing the personnel by 45,000 could not maintain sufficient profit margins. Nonetheless, the SWOT analysis reveals the threat in the form of over-reliance on operating companies’ expenditure, but the company contradicts this aspect by underlying the high demand for crude oil. In the end, action research is a necessity, as it helps determine the coherent strategy of the company by conducting interviews with the executives.

The primary goal of this literature synthesis is to reveal the importance of organizational dynamics and strategic planning while comparing different perceptions and applying the findings in the context of my workplace. This aspect will help determine the right long-term strategy to determine the sufficient functioning of the company. In the end, the conclusions are drawn to summarize the findings.

Literature Review

Firstly, the book Strategic Management and Organizational Dynamics: The Challenge of Complexity by Stacey underlines the complexity of the interactions and focuses on the achievement of the global goals while operating locally (Stacey, 2011). In this instance, the significance of the complexity of the firm cannot be underestimated due to its vehement influence on the future success of the firm. Nonetheless, the application of the action research cannot be underestimated since it reveals the inside of the issues within the company, which have a strong influence on the organizational performance.

In turn, the article Managing Coevolutionary Dynamics by McKelvey observes the coevolutionary and noncoevolutionary causes of alteration by referring the coevolutionary dynamics to the Law of Competitive Exclusion and the Red Queen Paradox (McKelvey, 2002). The referral to the biological nature of the processes assists in the understanding of the complexity of the issue, as the organism tends to evolve mutually. Nonetheless, cultivating the understanding that the modification might be caused by the inside factors assists in determining the significance of the application of the action research and the presence of complexity in these practices. It could be said that this approach is essential while setting the organizational goal and evaluating the potential consequences. In this instance, the implementation of the action research is vital due to its ability to focus on the inside processes of the organization in the context of my workplace. Nonetheless, paying high attention to the coevolutionary dynamics will help the company remain competitive in the market while establishing relevant strategies.

Furthermore, the article Co-Evolutionary Dynamics within and between Firms: from Evolution to Co-Evolution by Volberda and Lewin shows that high attention has to be paid to the self-renewing organization due to their high ability to adapt to the modification by utilizing the evolutionary engines (Volberda & Lewin, 2003). In this instance, this aspect assists in the understanding that the companies exist in the complex business world, and the ability for self-renewal cannot be underestimated due to the opportunity to remain successful while other organizations experience the downturn. The implementation of the action research will help cultivate the significance of these practices in the modern world while establishing new approaches to the goal-setting principles.

Nonetheless, the primary intention of the chapter of the book Complexity Science and Organization Studies by Maguire, McKelvey, Mirabeau, and Oztas underlines the fact that the research in scientific and organizational studies tends to be complicated due to the necessity of the involvement in the process (Maguire, McKelvey, Mirabeau, & Oztas, 2006). In this case, action research is essential due to its ability to predict the actions and determine the particular results while assessing the issue from the inside. This approach provides a clear understanding of the research practices while affecting the flow of the business processes in the organization.

Additionally, the article Complexity and the Functions of the Firm: Breadth and Depth by Wang and Tunzelmann provides information about the fact that the companies tend to focus only on the particular aspects of the firm by underlining their complexity (Wang & Tunzelmann, 2000). It could be said that this strategy creates difficulties while determining the new ways of development, as the management is not able to see the interdependence between the components. In this instance, the action research will determine the existence of this factor and determine the fact that discovering the organization as a complicated mechanism with interdependent components is essentiality.

In turn, the article The Evolution of Complexity within Firms by Koplyay and Mitchell provides information that the firms do not remain the same, and their complexity tends to evolve (Koplyay & Mitchell, 2014). In this case, the organizational structure of the firm is influenced by the various internal and external factors, which tend to exist in the modern world. It could be said that this approach presents the fact that the management has to pay high attention to the dynamics of the firm, as it determines their productivity and success on the market. Nonetheless, this aspect emphasizes the significance of the action research in the context of the sufficient functioning of my organization due to the presence of the issues, which cannot be solved without internal intervention. The action research will help determine the right solutions to the problem while paying attention to the evolutionary trends in the firm’s dynamics. Lastly, the article Firm Dynamics in the Urban Economy by Brinkman, Coen-Pierani, and Sieg provides information about the significance of the company’s dynamics in the context of the modern world (Brinkman, Coen-Pierani, & Sieg, 2015). In this instance, it could be concluded that the role of the action research cannot be underestimated due to the complexity of the business processes and the external influence on the company’s operations.


In conclusion, setting the strategy in the long-term is essential, as it helps predict the negative fluctuations in the market. It could be said that this approach will help determine the right strategy since the complexity of interactions determines the suitable approaches to the development. The firm is a complex mechanism, and this factor cannot be underestimated while performing the particular actions and focusing on dynamics and goal setting. Nonetheless, determining and underlining the importance of interactions while determining the strategy is essential due to the significance of the dynamics of the working processes on different levels. In the end, these aspects have to be considered as the determinant of the future actions at my workplace while developing the strategy.


[Anthony Marchese]. (2013). Organizations as Complex Adaptive Systems. Web.

Brinkman, J., Coen-Pierani, D., & Sieg, H. (2015). Firm dynamics in the urban economy. International Economic Review, 56(4), 1135.

Koplyay, T., & Mitchell, B. (2014). The evolution of complexity within firms. IIE Annual Conference Proceedings, 1, 881-890.

Maguire, S., McKelvey, B., Mirabeau, L., & Oztas, N. (2006). Complexity science and organization studies. In S. Clegg, C. Hardy, B. Lawrence, & R., Nord. (Eds.), The Sage handbook of organization studies (pp. 166-214). London, UK: Sage Publications, Inc.

McKelvey, B. (2002). Managing coevolutionary dynamics. Web.

Stacey, R. (2011). Strategic management and organizational dynamics: The challenge of complexity. New York, NY: Pearson Education.

Volberda, H., & Lewin, A. (2003). Co-evolutionary dynamics within and between firms: from evolution to co-evolution. Journal of Management Studies, 40(8), 2111-2136.

Wang, Q. & Tunzelmann, N. (2000). Complexity and the functions of the firm: Breadth and depth. Research Policy, 29, 805-818.