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Student’s name Professor’s name Marketing 2 September 2011 Turbulence Environment for Five Cities H. Igor Ansoff is regarded as the father of strategic management. He propounded the theory of turbulence environment to help firms remain competitive and profitable in the long-term in varying environments, from stable to highly volatile.
He put his concept into practice when he was a planning expert in the late 1950s at Lockheed Aircraft Corp., in the United States. He wrote several books, including Corporate Strategies, through which he spread his theory across the academia and the business world. In his last book, Strategic Management, he expanded the concept of turbulence environment to organizations outside business. 2. Concept Ansoff suggested, “for a firm to optimize its competitiveness and profitability, it has to match its strategy and supporting capability with the environment” (as quoted in Pun, n.pag.) He believed that if a company becomes purely self-serving, it soon loses track of its direction and dies; so a firm should commit it to understand the political and social fabric of a community for long-term profitability (Williams, n. pag.). Ansoff classified the environment into five categories: Repetitive, Expanding, Changing, Discontinuous and Surpriseful. These environments require stable, reactive, anticipatory, entrepreneurial and creative strategic response respectively (Pun, n. pag.). Organizational measures also differ in each environment. The higher the turbulence, the greater would be the need for innovation. In the repetitive environment, for instance, firms do not change their products and services, and hierarchical and highly structured. ...