GE: Strategic Thinking and Strategic Planning

2073 WordsJul 14, 20189 Pages
Literature Review Introduction The theories on strategy development and associated concepts of strategic thinking and strategic leadership are becoming more and more popular in today’s business environment. Leaders possessing strategic skills could turn to be the best strategy of their own as well as for their respective organizations. Meaning of Strategy Today the word ‘strategy’ is so prevalent that there are hardly any people who know nothing about it. Conversely, with this prevailing feature of the word, there is incredible disarray on its meaning. Analysis of literature showed that there are innumerable definitions, many of which have certain common features. Johnson et al. (2005) define strategy as “the direction and scope of an…show more content…
The main differences between strategic thinking and planning are the following: the first is synthesis, while planning is analytical; the basic difference lies also in the purposes of the two processes: strategic thinking is aimed at discovering new original strategies that potentially can rewrite the competitive game, as well as envisioning potential futures that are different from the present Mintzberg (1994). Strategic planning aims at operationalizing strategies that are developed via strategic thinking and at supporting strategic thinking processes (Heracleos, 1998). Tools to Articulate Strategic Directions Strategy does not come up by itself. It is generally a result of thorough discussions and deliberations around the future of the organization. There are several tools that are commonly used to facilitate strategic analysis articulation and development. Chief amongst these are SWOT analysis, PESTLE, Porter’s Five Forces, Ansoff matrix, BSG matrix and GE/McKinsey model. Each of these methods serves as a structured and methodical approach; however it can be argued that Porter’s Five Forces is most dominant of all. Porter’s Five Forces (1980) - referred to as P5F - provides an in-depth insight into the attractiveness on an industry from
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