2.1 Strategic management Flashcards
What are the two core aspects of strategic development?
1) Rational Strategy
2) Emergent Strategy
What is meant by rational strategy?
Change that evolves as a result of the working through of a strategic plan.
What is meant by emergent strategy?
Change that evolves without a rational plan, or as a result of the changes n the parameters that have helped in the construction of a rational plan.
Johnson et al (2017) suggest there are four core aspects to strategy. What are they?
Analysis - to understand reality
Choice - choosing preferred option
Implementation - putting choice into action
Control - monitoring the outcomes
Mintzberg criticised the rational model describing a “realised strategy” which is the result of emergent strategies affecting the intended strategy.
Wearden lists three reasons for this. What are they?
1) People - changes of staff or changes of opinion of those staff affect the strategy
2) Direct organisational events - a strike, machinery failure, customer changes
3) Indirect wider economic events - interest rates etc.
Wearden lists eight types of strategy described by Mintzberg. What are these?
Planned Entrepreneurial Ideological Umbrella Process Unconnected Consensus Imposed
What real world example demonstrates Mintzberg’s “imposed strategy”, whereby autocratic imposition affects strategy?
International Monetary Fund budget cuts imposed on governments affects strategy.
“All strategies are likely to have a mixture of rational, emergent and other influences.” Wearden offers 10 further strategic theories. What are they?
Complexity and chaos theory Institutional theory The ecological view The relationship between strategic and objectives Human behavior and strategic choice Incrementalism Competitive structures Cooperation and networks Game theories Innovation and knowledge based theories
A company secretary and governance professional must understand the _________ of different dimensions that sit begin the development of strategy.
Plethora
