Four Approaches to Strategy and Strategy Making

A) Classical Approach - emphasis on planning, strategy should fit organizational resources and
capabilities plus external environment
- analyze organizational environment and internal resources
-identify and evaluate strategic option
-implement strategy chosen
Use of SWOT analysis
Porter’s 3 Generic Strategies for Competitive Advantage
- cost leadership
- differentiation
- focus - find market niche
Strategy making as a rational, deliberate, and linear process results in formulation of strategic
plans that are handed down for implementation

B) Evolutionary Perspective - greater emphasis on environmental forces

Contingency - organization undergo adaptation to their environment
Broad dimensions include a)Stability
b)Complexity
c)diversity
d)hostility

C) Processual Approach - adaptive and emergent process driven by learning in an organization.

Formulation and implementation of strategy become integrated or fluid process. Skilled worker
conceive ( formulate) and execute ( implement)

D) Systemic Perspective - strategy and strategy making will be affected by the social and cultural
system within which this occurs - one country’s social and cultural system differ due to variation in
class structure, operation of the market, role of the state, beliefs and values, - this will necessitate
different approach between countries

TEN SCHOOL OF STRATEGY MAKING - Mintzberg

Approach to School of Strategy Strategy formed through
Strategy making

Prescriptive Design Conceptual Process

Planning Formal Process
Positioning Analytical Process

Processual Entrepreneurial visionary process

Cognitive Mental process
Learning Emergent Process
Power Negotiated Process
Cultural Collective Process
Environmental Reactive process

Transformational Configuration Transformational Process

Evaluating Processual Approach

Classical approach seek to emphasize Management control over strategy. All real strategic
behavior has to combine deliberate control with emergent learning. The Role of leader or
management is to develop approach that subtly exercise control while facilitating learning.
Strategic Continuum from Mostly Deliberate to Mostly Emergent
MOSTLY DELIBERATE
Planned - precise intention and high level of formality
Entrepreneurial - central vision but some detail emerged
Ideological - collective vision, widely subscribed to
Umbrella - strategic target, others develop operable strategy
Process - control over structure, staffing, others develop content of strategy
Unconnected - strategies emerged from different parts of the organization
Consensus - strategies emerged through pattern/s of action
Imposed - strategies emerged from environment which direct action
MOSTLY EMERGENT

In reality, a purely deliberate or purely emergent strategy do not exist. Continuum - Real
strategies can be identified from Mainly Deliberate to Mainly Emergent and Partly Deliberate to
Partly Emergent