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Section Two: Mintzberg And Waters Categories Of Strategy.

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Section two: Mintzberg and Waters categories of Strategy Within this section I will identify explain the eight categories of strategy in AIB’s work throughout the years. To begin, I will discuss the purely deliberate strategies and work my way to the other end of the spectrum, each becoming less deliberate and more emergent in nature. Planned A planned strategy is considered to be as the name suggests, controlled and specifically formulated usually from the top-level of management. It aims at realizing the intentions of authority without much “distortion” along the way. This is evidenced at AIB by the explicit strategic intention of “simplification and digitization” in the way in which it operates and delivers its products to customers…show more content…
This was centred around the greed of shareholders for profits and to maximize financial rewards to staff through a bonus mentality, manifesting itself in extensive reckless lending. The focus on maximization of return regardless of risk became and embedded ideology within the banking sector in Ireland in the 2000’s and its widespread adoption in this sector was one of the root causes of the banking collapse from 2008. Umbrella An umbrella strategy assumes a more relaxed approach with regard to management setting out general guidelines. In such they are given defined boundaries (umbrella), which allows their staff to have independence but also restricts them from going too far astray. This is a ‘deliberately emergent’ type of strategy whereby results come within the boundaries of broad direction. Examples of this can be seen in action at AIB through their strategy of enticing new customers and supporting existing ones. They have directed their attention at the youth market- getting them on board early as AIB customers and keeping them by providing on-going incentives e.g. on-campus banking facilities, no current account transaction fees, discounts e.g. Just Eat.ie, student credit card, free travel card on sign up, and in a new student loan facility with lower interest rates. (AIB 2014) Employees within the company have flexibility to create new features like
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