As the developer of www.businessplanquickbuilder.com, I am often asked about the reasons for business pivots. Here is our response to a recent question on Quota.
A business pivot, is where change is made in the strategy and direction of the business. During stable environmental conditions business pivots should not be required, incremental changes can be made to keep the business tuned to the environmental conditions. However, a dramatic change in the environment, perhaps entry of a new competitor with a new technology, means your business must pivot and change direction to adapt so the business remains competitive. See an interesting discussion of business pivots because of the pandemic in Guillen (2020). Mintzberg (2009) observes that business may have a ‘deliberate’ ‘intended’ strategy, but often this is not the ‘realized’ strategy that actually ‘emerges’ due to environmental change.
References
Guillen, M.F. (2020) How businesses have successfully pivoted during the pandemic, Harvard Business Review, July.
Mintzberg, H. (2009) Strategic Safari, Pitman, FT Publishing.
