Contents Introduction 2 Placing the article in wider literature debate 2 Strengths and Weaknesses 3 Conclusion 4 Works Cited 5 Introduction When described with historical perspective since it arrived in the mid 1960s, strategic or prescriptive planning has been embraced as a way of “outflanking competitors with big plays that yield long term rent from a sustainable advantage” (Bhide, 1986). Although it faltered in the 1980s and 1990s mainly due to the unstable economy in that period and the rise of emergent strategy, it is still being practised today (John A Pearce II, 1987). Emergent strategy is the view that “strategy emerges as intentions collide with a changing reality” (Moore, 2011). This literature review places the article …show more content…
[p68]. John Oliver emphasised in his book the importance of effective use of the action learning process hence emergent strategy in developing a future business strategy. (Oliver, 2006) The inflexible nature of deliberate strategy greatly reduces its litheness for creative and reactive process. Emergent strategy therefore possesses a much greater adaptability, particularly in tentative times and more difficult business environmental conditions. However Michael Porter argues that Industry structure drives competition and profitability. Success is not determined by whether an industry is mature or emerging (Porter, 1979). This is a typically prescriptive view on strategy, as it suggests breaking down intentions into communicated steps and formularizing those steps into the structure of the organisation. This premise is contradicted by various perspectives, as they believe accumulated learning and experience provides rare advantage that is difficult for other competitors to copy (Gerry Johnson, 2008). This suggests that strategy can be crafted as organisations learn from previous success and failures. Mintzberg in ‘Crafting strategy’ promotes the idea that prescriptive strategy ‘misguides organisations that embrace it unreservedly.’[p66]. He pushes the idea that crafting strategy is a more effective representation of strategy. ‘Craft evokes traditional skills perfection through the mastery of detail....developed through experience and commitment.’[p66]. This is
Planned Strategy: The main feature of this strategy is that formal plans and precise and very
Mintzberg (1984, pp. 69) suggests “the notion strategy is something that should happen way up there far removed from the details of running an organisation on a daily basis and is one of the great fallacies of conventional strategic
In his article, “The Fall and Rise of Strategic Planning,” Henry Mintzberg (1994) provides his views on the process of strategic planning. He offers that most companies and organizations start a strategic planning process with little understanding of the definition or actual purpose of planning. He tends to admonish much of the conventional understanding concerning strategic planning and proposes his interpretations. He states that “the most successful strategies are visions, not plans” (Mintzberg, 1994, p. 107).
out that the central to sustain competitive advantage is to have a creative and divergent
This article presents is a critical analysis of the article “Strategy as Revolution” published by Gary Hamel (1996) in Harvard Business Review. The article clarifies the position of the article within the wider debate about the processes of strategy and highlights the main strengths and weaknesses associated with the article.
The Case Study concerning MacFarlane solutions is an interesting one to note down regarding strategic planning in an organization. From the information given, it appears that the small business expanded merely due to the insight of Bill MacFarlane and the planning that he gave forward. (McDonald 2011 pg. 736) Bill started off after working in a firm and having an experience of more than forty years. He specialized in what he knew and then gave forward what he was good out. There was risk in his ventures as the expert started out, however he trusted his instincts and went out with the planning.
There are various schools of strategy that have been vigorously debated on and after a consolidated effort; three schools of strategy were produced. They are the planning school, the positional school, and the resource based school of strategy (Ritson, 2013). All these strategies will be described with examples to buttress each.
Glaister, K, W and Falshaw, J, R, 1999, ‘Strategic planning still going strong’, Long Range Planning,
Throughout this paper I will be looking in-depth at two of the most well recognized strategic management theories, Intended Strategy and Emergent Strategy. I will be evaluating the suitability of the emergent and intended approaches to strategic management and measure the appropriateness of each theory using various academic models (such as PEST analysis, Porter's 5 Forces, Porter's Generic strategy) in order to consider the differing environmental contexts of my chosen organization - Oxfam.
Our choices or decisions precedes everything, from day to day operations to the direction we steer our organisations in. According to Mintzberg and Walters strategy is “a pattern in a stream of decisions”. Strategy can be planned or deliberate but also emerge as we go along and adapt to internal and external influences.
Alfred Chandler(1963) defines strategy as ‘ the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals’. And Michael porter(1996) sees it as ‘Competitive strategy is about being different. It means deliberately choosing different set of activities to deliver a unique mix of value’.
Strategy can be defined as being different from one’s competitors, finding the race to operate and accomplished it. According to Michael Porter (1996), while becoming better at what you do is desirable, it will not benefit you in the long run because it is something other competitors can also do. Strategies for organizations are originally developed by Michael E. Porter in 1979 by introducing the five forces model. A company can identify the industry profitability and attractiveness by analyzing the five forces of Porter (Johnson et al., 2008). And then a reasonable strategy can be set up in line with the strengths and the weakness of an organization is able to create a plan for a stronger position for the organization within its
36). Today, the increased attention for strategic planning is a response to rapid and extensive changes in society such as the introduction of market economies and privatization, increasing environmental awareness, more attention for sustainable development, decentralisation issues and structural adjustments in public spending (Davidson, 1996).
For example any planning undertaken by Ryanair for new routes or planes would follow the prescriptive model as the objective would have been defined beforehand and elements such as finance will have had to have been agreed before any purchasing goes ahead. On the other hand emergent strategies may be in place for things like training and development where elements can be discovered along the way for example if an issue arose where staff needed more health and safety training then the training programme could be redirected. Ryanair, as already stated, follows neither strategic approach religiously and possesses a strategy unique to their organisation, which has identified their needs and objectives. However their approach to strategic management isn’t unique in itself as the majority of organisations will tailor strategies to suit their business’ own individuality.
A strategy, according to Robbins and Barnwell (2002, p. 139) is “the adoption of courses of action and the allocation of resources necessary to achieve the organisation’s goals”.