Planned strategy, emergent strategy and scenario planning

2797 WordsMar 6, 200712 Pages
Nowadays, strategy is the focal point of all business ventures. It is essential to any successful business. In a nutshell, a strategy means the actions that manager's take to attain the goals of the firm (Mintzberg, Quinn and Voyer, 1995). In addition, strategic is a term that virtually every businessperson believes they know and understand. Strategy planning is the process of developing and implementing plans to reach goals and objectives. Strategic planning, more than anything else, is what gives direction to an organization and actions necessary to improve its performance (O'Regan, N & Ghobadian, A, 2002). This paper sets out to determine the importance of strategy, fundamentally the differences between 3 forms of strategy, namely the…show more content…
As with all strategic level decision making there are pros and cons (advantages and disadvantages) to every decision, so is the case with planned strategy, which are outlined below:A major advantage is that a good strategic planning process involves the establishment of a clear goal and the necessary processes to achieve it (Armstrong, 1982). The main advantages to use formalized strategic planning in that it facilitates the inclusion of strategy in the corporate agenda and a direct result of the strategic planning process increases staff awareness and enhanced participation in the strategic plan. In addition, (Mang, 2000) argued that those strategic ideas might emerge from everybody, anywhere, anytime, through trial and error or through planning in that it allows the strategic planner to address and incorporate suggestions on strategy that might not have occurred to him/her. Planned strategy is controllable for future occurrence and it makes current planners involved. It makes decision making rational. It pushes for coordination and every person involved such as suppliers and customers are represented and taken care of resulting in a more effective supply chain and customer relations. It also reduces company's risk when entering a new strategy (Shiner.D, 1998).
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