Difference Between Classical And Contingency Theories

The world of retail has entered a period of enormous transformation, with broader retail market growth at a pace of three percent annually, many retailers are finding themselves in an uphill battle to profitably expand growth and market share (Deloitte, 2017). According to Richard Goyder AO, Managing Director, Wesfarmers “The key to long-term corporate success is evolution – looking for new ways to do business, for new businesses and new geographies to operate in (Wesfarmers, 2015).

Each year companies get a chance to tell what their organizations have accomplished and what their future goals are through annual reports. The purpose of these reports is to deliver shareholders, possible investors, and employee’s information on how a company has been performing and how it expects to progress in the future. Walgreens, a pharmacy-led health and wellbeing enterprise founded in 1901, is one such company that takes advantage of having an annual report. To convey its information, Walgreens uses three communication techniques and strategies. First, to show the strides it has made in creating a customer-centric retailing experience, Walgreens uses

In 2014, Walmart announced a new president and CEO, Doug McMillion. McMillion had the duty of taking over the world’s largest company in respect to revenue, $473 billion, and the world’s largest private employer, 2.2 million associates. As it turned out, under McMillion’s leadership, in 2015 Walmart experienced the first decline in its annual sales ever. Many people had predicted that Walmart’s better days had been behind them when McMillion became president. As a result of this decline in annual sales, people questioned whether or not Walmart could return to the usual type of growth in sales it had essentially earned every year since it’s founding in 1962. To answer this question, some possibly issues with the management and strategy of Walmart’s business needed to be looked at in depth. Some of these most important issues included: the recent increase in retail sales of the online market compared to the discount retailer market, the state of Walmart’s international business, and the lacking performance of Walmart’s Discount Store, SAM’s Clubs, and Neighborhood Markets compared to their Supercenters.

Strategy is usually related and sometimes confused by people with planning. But as time course shows in the study of companies, there are different approaches of how a company can develop its strategy. Johnson, and Shcoles, in their book “Exploring Corporate Strategy” had studied the different ways that companies develop their strategy. The authors had formulated and structured three general ways how companies build it, there are: the design, experience and ideas lenses. “Exploring Corporate Strategy” literature explains that these are the main streams how people perceive that strategies are developed, but these streams are not exclusive but inclusive and can be combined to develop each company’s

Wal-Mart is an organization that has been extremely successful in achieving its goals of becoming top retail store in the world. Managers for this organization must plan, organize, lead, and control each component of this organization in order to secure its success. There are factors, internal and external, that can impact these four functions within an organization. Management 's responsibility is to take these factors into consideration to ensure that business will be successful. These factors are its strengths, weaknesses, opportunities, threats (SWOT). (Bateman-Snell, 2009)

However, the online marketing has been posing problems to Wal-Mart such as maintain tidiness due to the large customer base, delivering grocery products, restocking the shelves, integration of online and physical stores, employees satisfaction among others. The problems have been making Wal-Mart Company less effective in satisfying the demand of the customers which make them find products from the competing companies. Therefore, as resources managers of the company, it would be important to address the issues to the employees, and together we can find solutions to the problems based on the current conditions (O'Neill et al. 2016). Furthermore, it would be important to choose a leadership strategy that works for different sectors in the organization. The efforts would aim at achieving the goals and objectives of the company and develop a strategy that would allow the company to grow and adapt to the current condition.

Walmart has always been considered a powerhouse in the retail business world. It is encouraging to read the story about how Walmart started as a small store in one location but now Walmart has grown to over 11,000 stores worldwide. There is no mistaking that Walmart has shown itself to be a business that has grown to the ranks of empire among retail. With net earnings of more than $482 billion and a staff of more than 2.2million associates worldwide (Walmart, 2016), Walmart has squashed its competitors and created a category all its own. These successes can be contributed to Walmart’s’ exemplary external and internal business environment and their ability to construct a masterful business and corporate level strategy.

This study examines factors that determine organization structures. The objective was to examine the extant empirical literature in order to identify the salient factors that influence organization structures. Several studies have been cited revealing that structural contingency framework has for a long while provided the determinants of organization structures. The assumption has always been that structural-contingency framework is deterministic on organization structures. Many of such studies are bivariate, testing the relationships between size, strategy, technology, environment and structure. But the structural contingency framework fails to explain the process by which decisions on structures are reached although it names the factors that have to be considered. This paper concludes that the structural contingency factors are not deterministic in the formation of organization structure. These factors are necessary but not sufficient condition for restructuring organizations. The process of structuring organizations is a political process through which those who have the power to direct firms play significant roles. In any case the factors do not choose but people

When talking about strategy, most people simply associate it with a long term direction and plan. In fact, the components and development of strategy are far more diversified and complicated than people normally imaged. In this essay, by an review and evaluation of different approaches to strategy, it critically discuss the current debates of different approaches and discuss whether the definition of Chandler(1962) is appropriate to apply to the organization today.

Organizations are, “tools people use to coordinate their actions to obtain something they desire or value” (Jones, 2013, p.). Successful organizations are dynamic, adaptable, and efficient. Prosperous companies continually transform and grow to meet the needs of their environment (Jones, 2013). This paper examines the importance of striking a balance between organizational structure, design, culture, and strategy in order to achieve stability in a continually shifting organizational environment.

Strategy was shaped from the top but also from every person in the company as she adapted the deliberate strategy to her work. The existence of an emergent strategy led to the question of how top management could influence it (through, among other tools, MCS). The concepts of interactive and boundary systems (Simons 1995)—with the purpose of managing these ‘‘unexpected’’ decisions—captured this new role for MCS. If day-to-day actions modify top management deliberate strategy, then why should top management go all the way to formulating it? The answer to this question led to the next step in the evolution of our understanding of the strategic process. Research suggested that top management does not formulate a deliberate strategy that is then randomly mixed with the emergent strategy. Rather, top management knows that the deliberate strategy is never implemented; instead of trying to force it, top management focuses on defining the guidelines that shape the emergent strategy (Burgelman 2002). The process of setting up these guidelines to induce certain strategic behavior is captured in the idea of intended strategic actions (lower left quadrant). These guidelines reflect top management’s objectives rather than prescribe what the organization should do. This idea was further refined through the observation that emergent strategy included two very different types of outcomes. Often emergent strategy evolved

It is clear that no organisation can function properly with the absence of their structural and behavioural as well as operational strategies in place. The problem analysis shows that the lack of behavioural strategy contributes 67%.

BS7000 works on all types of products and elaborates with all of the characteristics that the products’ life cycle consists of. Pugh is recognised for his contributions to a methodology encompassing the total design and development process. Pahl and Beitz have brought together the extensive body of knowledge about systematic design. They present an up-to-date theory of general engineering design, based on the modern design thinking in Germany.

Organisational performance and effectiveness is a function of match between organisational structure, processes, and the external environment (Hrebiniak and Joyce, 1985). In the filed of strategic management pioneering works were carried out by many experts. Porter emphasised that corporate strategy can not be planned and implemented without considering the competitive environment whereas Mintzberg explained that strategy is evolutionary, organic process and it is unpredictable (Hamel and Prahalad, 2002).   Although Chandler stressed on organisational structure design around the needs of effective

After examining different theories of organizational strategy we were able to apply each case to our company and work. We also learned that there are two dominant methodologies, categorized as planned/analytical and emergent approaches. These strategies provide much knowledge and advice as to how to improve our organization. However, it is important to remember that these theories are not perfect. They do not encompass every organizational situation and there are a lot of circumstantial assumptions made as well. In the following discussion we will analyze the advantages and disadvantages between these strategic theories. In addition I will reflect on how these approaches may be used in my own real world situation.