Strategic Management
Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2DQ
Summary Introduction

To determine: The situation when top-down planning is superior to bottom-up emergent strategy development.

Introduction:

Strategic management refers to formulating and implementing the way to achieve the goals by considering available resource and the internal and external environment. It will be framed by the top management on behalf of an organization.

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Explanation of Solution

Determine the situation when top-down planning is superior to bottom-up emergent strategy development:

For stable environments, top-down strategic planning is best. If the environment is not stable and the things are uncertain, the emergent strategy can be used. However, according to some researchers, combining both top-down and emergent strategy would help to derive the best results.

In the recent times, most of the organizations are flexible. Thus, the firm can use top-down and bottom-up plan based on the situation. Reliability and consistency are the key success factors if the business is using top-down planning. Innovation based business is the success factor if the business is using bottom-up planning. Determining the customer needs and being close with the knowledge of the customers are the basic advantages of bottom-up emergent strategy.

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