Chapter 4 - Problematising Strategy

Question 1

Basic assumptions of PS and RBV

Answer 1

Strategy making takes place as a discrete set of decisions i.e. a one-off process made by CEO/top managers. In reality it is more complex, made over time and by many.

The organisation has a single set of interests which can be pursued via effective strategy. Assumes everyone has the same goals/objectives but everyone wants different outcomes.

Strategy making and implementation is rational and predictable process of analysis, planning and implementation. In reality, not rational/predictable.

Question 2

Processual Approaches to Strategy

Answer 2

Strategy as a continuous process. Numerous individuals and groups amen decisions and take action, which over time takes the form of strategy. Based on individual interests and shouldn’t speak of organisation in general.

Strategy may only make sense in hindsight. usually analysed once it has happened.

Pettigrew’s strategy as a political process or Mintzberg’s emergent strategy

Question 3

Pettigrew’s political view of strategy

Answer 3

An overt process of influence, emphasising use of power and politics to negotiate strategies favourable to some interests. Political action can take place within organisation (micro) or enacted by organisational leadership against other firms (macro). Using power to influence others.

Strategy making is inherently a political process. it is a series of responses to dilemmas/ problems.

Question 4

Understanding strategy

Answer 4

Which dilemmas are addressed and which ignored?
Which and how do groups/individuals try to ensure that a dilemma is addressed?
How do individuals/ groups mobilise power to support these demands? To mobilise others to follow their opinions?
What is the outcome?

Question 5

What is making strategy inherently political?

Answer 5

Fallacy of unitarianism but people have different interests and goals

Organisation as structured around interests

Question 6

How is power mobilised? How to convince people to do what you want?

Answer 6

Reward, punishment authority.

Resources: reputation as expert, access to information, charisma.

Decision making: influence decisions can influence informal/ formal outcomes

Management of meaning: convince others of ideas/ strategy

Question 7

Mintzberg’s Planned vs. Emergent Strategy

Answer 7

Strategy as a pattern in stream of actions. Most planned strategies fail, and it often emerges over time with external events/individual decisions. e.g. Honda motorcycles in US.

Question 8

Planned/Intended Strategy

Answer 8

Strategic change is deliberate
Process is linear
Formulation and implementation are seperate
Decisions are results of rational analysis
Strategic decisions are take at top
Unrealised strategies, planned strategies have to be adapted to be successful.

Question 9

Emergent/Realised Strategy

Answer 9

Strategic change evolves
Process is iterative
Formulation and implementation are entwined
Decisions are results of intuition, opportunism and reflection
Strategic decisions taken all over the organisation
They emerge over time and become strategies after adaptation.

Question 10

Best practice

Answer 10

We should plan strategies by looking in/out of firm, but we need to react flexibly to environment and changes in and out of organisation. In practice, a lot of strategy is unplanned and emerges through accretion of actions. It is not necessarily a rational and neutral process, but can be a political one.