CHAPTER 9: DEVELOPMENT IN STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT

Strategic management is the process in which management

implements a plan or strategy that maximizes the utilization of
resources for the benefit of the organization.

SOURCE: https://smallbusiness.chron.com/strategic-
management-development-trends-22614.html

TYPES OF STRATEGIC MANAGEMENT

INTENDED STRATEGY EMERGENT STRATEGIES REALIZED STRATEGY

is the strategy that an organization
is an unplanned strategy is the strategy that an organization actually follows. Realized
hopes to execute. Intended
that arises in response to strategies are a product of a firm’s intended strategy (i.e., what
strategies are usually described in
unexpected opportunities the firm planned to do), the firm’s deliberate strategy (i.e., the
detail within an organization’s
and challenges. Sometimes parts of the intended strategy that the firm continues to pursue
strategic plan. When a strategic
emergent strategies result over time), and its emergent strategy (i.e., what the firm did in
plan is created for a new venture,
in disasters. reaction to unexpected opportunities and challenges).
it is called a business plan.
Strategic planning, usually in the form of a business plan, is a key aspect of creating a new venture. Many well-known firms, however,
owe their success more to their ability to adapt than their original plan. Most firms begin by pursuing their plans (also known as intended
strategy), but unexpected opportunities that arise over time can lead firms in much different directions than could have ever been
anticipated (emergent strategy). Ultimately, the intended and emergent strategies each contribute to a firm’s realized strategy. In the
cases below, the original intended strategy can barely be detected within today’s strategy.
COMPANY INTENDED STRATEGY EMERGENT STRATEGIES REALIZED STRATEGY
The company changed its name
The perfume McConnell gave
Dave McConnell aspired to be a to Avon in 1939, and it’s direct
out with his books were
writer. When his books weren’t marketing system remained
popular, inspiring the
selling, he decided to give out popular for decades. Avon is
foundation of the California
perfume as a gimmick. now available online and in
Perfume Company.
retail outlets worldwide.
When father and son team Scott ESPN is now billed as the
As the network became
and Don Rasmussen were fired worldwide leader in sports,
successful, ESPN branched out
from New England Whalers, they owning several ESPN affiliates
beyond the local softball games
envisioned a cable television as well as production of ESPN
and demolition derbies that
network that focused on sports magazine, ESPN radio, and
were first broadcasted.
events in the state of Connecticut. broadcasting for ABC.
In 1977, a cash-strapped An idea emerged. Soon the Today the Home Shopping
advertiser gave a radio station radio station featured a regular Network has evolved into a
managed by Lowell Paxson 112 show called “Suncoast retail powerhouse. The
electric can openers to pay off an Bargaineers.” In 1982, Paxson company sells tens of
overdue bill. The can openers and a partner launched the thousands of products on
were offered over the air for Home Shopping Club on local television channels in several
$9.95 and quickly sold out. cable television in Florida. countries and over the Internet.
SOURCE: https://opentextbc.ca/strategicmanagement/chapter/intended-emergent-and-realized-strategies/

3 APPROACHES TO BUSINESS STRATEGY

 Internally-Driven Organizations
Most organizations are internally driven, which means that their strategy is driven by what they have done in the past; their
thinking is inside out. The weakness with this strategy is that organization members are not anticipating changes that are
happening in the marketplace.
 Customer-Driven Organizations
Customer-driven organizations are those who try to by close and ready to listen to the customer. The problem with approach is
that these organizations end up trying to be “all things to all people.”
 Market-Driven Organizations
Lastly, Market-driven organizations base their strategy on making conscious choices about which markets they will serve and
how they will add value. High performance organizations not only participate in the strategy process; they also understand
which strategy will propel their organizations forward.
SOURCE: https://www.sagu.edu/thoughthub/3-approaches-to-strategy
REPORTED BY: JOBELLE B. DECELIS | ENTERPRISE PLANNING |11:30AM – 2:30PM