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Management theory
Basic concepts strategic management
Management theory
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This essay is looking in-depth at two strategic management theories: intended strategy and emergent strategy. The suitability of the emergent and intended approaches to strategic management and measure the appropriateness of each theory using various academic models in order to consider which approach is suitable for my chosen organization Tesco plc.
The definition of strategy has been given by many theorists. The most approve one for personal is stated by Johnson, Scholes and Whittington: “Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson, Scholes, and Whittington, 2008) For
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Lynch (2005) explained emergent strategy as 'an organization whose final goals are hazy, and organizations achieve the strategy proceeds from developed during the course of its life '. Which also suggests emergent approach used at organization to face the quick change market environment, using for short term. Nevertheless emergent strategy also need original theory and formulated built on, and then change with results as an unexpected way. Mintzberg in this field is a key scholar. And he describes emergent strategy as 'a pattern in a stream of decisions ' and furthers this description state "strategy forms, as well as is formulated" which suggests that strategy is a consistency in the firm, but must be play a part in the best interest of the business (Mintzberg 1996). Mintzberg also proposes that it was achievable for strategies created using this concept, and the organization is prepared for any changes or challenges, which focuses on the ability to acknowledge patterns and the ability to act upon emergent factors facing an organization. (Mintzberg, Ahlstrangd and Lampel
23), a strategy is competing differently using a set of actions to perform better over rivals and achieve greater profitability. It is about choosing to be different and making the correct choices to provide direction and guidance to employees and the company on what to do and what not to do.
. The traditional strategic planning model always matches the model of strategy making, and its goal is to obtain a relationship between internal resources and abilities and external opportunities and threats. However, this attitude can cause overemphasis on existing resources and current opportunities. On the other hand, the strategic intent can lead managers concentrate on establish new capacity to explore further opportunities.
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
Business strategy is a long-term plan of actions intended by the business to attain its set of goals or objectives. The business strategy states ways business conduct to achieve its desired goals at a certain period. It can also be defined as a roadmap that guides business to achieve and meet its set goals a certain period (Barney, 2006)
Works Cited Carpenter, MA & Sanders, WG 2007, Strategic management: concepts: a dynamic perspective, Prentice Hall, New Jersy. Furrer, O 2010, Corporate level strategy: theory and applications, Taylor & Francis, New York, NY. Hill, C & Jones, G 2009, Strategic management theory: an integrated approach, Cengage Learning, New York, NY.
To formulate a strategy, one must understand what a corporate strategy is. According to Hitt, Ireland, & Hoskisson (2013, p.164) “a corporate strategy is a specific action a firm takes to gain a competitive advantage. Corporate level strategies help companies to select new strategy positions”.
The business world is ever evolving and market forces keep on changing. The emergent strategies are usually as a direct response to market forces. These could be aspects such as changes in consumer preferences and practices of competing businesses. This means that emergent strategy allows a business to offer what is actually needed in the market. The flexibility to embrace new strategy for the benefit of the organization is a major plus for the emergent approach. It is however worth noting that a blend of both analytical and emergent approaches sounds more favourable. Initially, there is need for leadership to set up a vision that is supposed to direct its employees as well as a plan to accomplish the same. In addition, it is essential that the strategy is in a position to respond to external stimuli (Hill, Jones & Schilling, 2014). It is therefore advisable to adapt an all-inclusive approach, which is partially emergent and partially
According to Johnson et al (2013) and John (1997), strategy can be defined as a general scope or long-term direction of a firm. Johnson et al (2013) state that strategy has three levels which refer to corporate, business and operational levels. In Lynch’s view (2006), there are two elements in corporate strategy that are corporate-level and business-level. This essay will focus on both corporate and business-level strategy. To conclude Lynch (2006) and Johnson et al (2013)’s points, corporate-level strategy can be identified as a purpose or overall scope of an organization. Business-level strategy is related provide the best value for products or services to compete in the specific markets. For example, innovation or response to competitors are usually the tactics of business-level strategy (Johnson et al.,
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
The first portion of the novel is centered on understanding the essence of strategy. The understanding strategy, according to the author, is derived from truly comprehending what strategy
... process essentially entails functions such as planning, organising, leading or directing and controlling the resources of an organisation. Strategic management is the application of this management process at the top level of the organisation. At this level the focus is on the resources, capabilities and core competencies or the company as a whole and on the ways to achieve success over the long term within the context of changing and ever-competitive environments. According to Johnson et al, strategies do no happen by themselves. Strategies involve people, especially the managers who decide and implement. Strategic management consists of 3 elements, understanding the strategic position of an organisation, making strategic choices for the future and managing strategy in action. Strategic management thus entails two tasks, strategy making and making strategy work.
• Strategic management is fluid and complex. Change creates original combinations of conditions requiring shapeless non-repetitive responses.
There are different types of strategic planning that are currently in use, since this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy whereby the objective of the strategy is defined in advance and the main elements are designed and develop...
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
It is only after a firm overcomes its competitors that it can achieve its goals and objectives, especially with regard to its returns. Through strategic scaffolding, an organization is able to construct and reconstruct its strategies with the emerging trends within the industry. This can be prompted by unavoidable changes such as technological revolution and globalization, new entrants among other forces. Therefore, these new factors should not lure the organization into changing the goals, but on the contrary, should slightly change the way to reach the goals. Most organizations are unable to create a long-term strategy that would last over five years, and over that period, the new forces it to change the course to reach the same destination.