Entrepreneurial School of Thought

4494 Words Jan 7th, 2015 18 Pages
Entrepreneurial School of Thought
This school sees strategy formation as a visionary process and is fell under the descriptive school of strategic management. The chief architect of the strategy is the CEO of a company. This school took formal leadership seriously and CEO is responsible for strategy formulation. It stressed on mental state and processes such as instinctive knowledge, belief, wisdom, experience and insight of a single leader. The leader should be visionary in formulating strategy. The entrepreneurial school promotes strategy as a process which has a clear image and sense of direction which can be termed as a vision. Entrepreneurial strategy often occurs in startup companies and organizations in trouble and needing a
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* The strategic vision is very flexible, so entrepreneurial strategy tends to be deliberate and emergent. This means it fully considered the every aspect of a company and very prominent in how the details of the vision unfold. * Under entrepreneurial school of thought, organization is like a metal which can easily be molded into any shape according to the vision and mission of the organization. The leader is free to do necessary changes and transformation as needed. * Entrepreneurial strategy tends to take the form of a niche which is a specialized but profitable segment of the market. It protects the organization niche from the forces of open and direct competition. * A sound vision and a visionary CEO can help organizations to sail cohesively through muddy waters. Especially in early or very difficult years of the organizations. * Strategy exists in the mind of the leader in the form of a vision of the organization’s future.
Limitations
In my opinion the entrepreneurial school of thought has the following limitations which I have discussed below one by one. * In entrepreneurial school of thought the strategy making is formulated by a single person i.e. the CEO, so it may neglects the voice of other people in the organization. * Sometimes when implementing strategy the CEO is not fully aware of the ground level realities of the organization. He may not be fully aware of the operational

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