Week 27 Journal

Week 27

1)       In your own words and using referenced quotes explain why strategy theories developed in the last 10 years tend to be quite different from those developed in the 1960’s.

2)      You attend a job interview for an entry level managerial position and mention that you completed a 30 week strategy module. Your interviewer seems interested and explains that this job role would enable you to become involved in the strategy making process. In 200 to 300 words explain to your interviewer how the module has helped to prepare you for a strategy role.

Answers

1)      Originating in the business community in the 1960s, strategic planning attempts to combine short-term and long-term planning. Organizations conducting strategic planning typically commit themselves to a formal process in which a group of "planners" articulates a mission statement, sets goals and objectives, audits the organization for internal strengths and weaknesses, assesses the external environment for opportunities and threats, evaluates strategic options, and then selects and operationalise an organizational strategy. The basic aim of strategic planning is to link daily organizational decisions with a vision of where the organization wants to be at some point in the future, usually five years hence. Back then, many organizations used to follow the same strategy and often the result is positive but not incremental.

The time change, people adapt the change and they change the process. Strategic theories look more complex at present.  Due to the stiff competition in the business, strategy theories are developing day by day.

Differences between the strategy theories developed in the last 10 years and 1960’s can be done through strategy theory responses:

1)      Complexity Theory:

If we look after recent strategies, it has been found that nothing is predictable. Flexibility has been seen as the major determinant for adapting to the change. The best example can be emergent strategy as every company is following this strategy. On the other hand, deliberate strategy takes so much time for implementation that the whole scenario might change at that moment.

2)       Rapid Adaptation:

From the last ten years new technologies have been developed and customer’s wants are also increasing day by day. It is wise to say that competitive advantage in today’s date cannot be achieved through a unique resources or positioning strategy. Today business organization are changing their strategy as per the change in the market it is very hard to use traditional tools such as SWOT analysis because it is difficult to analyze the changing market. 

3)      Options Theory: In the theory of porter’s five forces model the main source for competition was competitive rivalry depending upon the bargaining power of buyers and suppliers, the threat of entrants, and availability of substitute goods. Now today the concept has been changed. It is said that competition comes from flexibility. The market is changing unexpectedly. So opening up the door of flexibility for any time can be a biggest competitive advantage for any organization.

2)      This module “Strategy Choices and Impact” has taught many things about strategy, its procedure, theories and implementation and adaptation. Strategy becomes more complex within the past 10 years time period. Today the meaning of strategy has changed. So, strategy today is creating environment, rather than a series of procedures, where the companies find themselves in a flexible position. This module has covered all the basics and complex aspects of the strategy.  Use of different analytical tools like Porter’s Five Forces Model, 7s Model, PESTEL Analysis, SWOT ,TOWS Analysis, Ansoff Matrix makes this module more useful for students. This module is more about practical knowledge than the theoretical, lots of research and study over the internet as well as from the text books are needed to be done. This module helps to understand the nature and understanding of business and the strategies to tackle with the problems. This module provides the clear understanding about the risk-taking, management of strategic innovation processes, strategy formation and implementation, behavioral understandings of competition, global strategy and entrepreneurial strategy. The module also embraces a wide variety of methodological approaches that are important for strategic outcomes.

With case study and report included, this module aims to give the real understanding about the organizational situation or problems and strategy to cope with it.

Reference

·         Online available from http://hepg.org/her/abstract/310  [Accessed May26, 2013]

·         Clarke, C. J. (1997) ‘The Strategic Planning Society – The First 30 Years’ Long Range Planning 30(3) pp 327-333