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.
Classical Approach to Strategy (1960):
The classical view of strategy is
related on the military practice, in which the globe is a firm hierarchy with a
single general who makes decisions. The military model is balance by an
intellectual inheritance from economics. Von Neumann & Morgenstern (1944 in
Whittington 1993) ‘placed this remarkable figure right at the heart of their
idea of strategy as a complicated ‘game’ of move and counter-move, bluff and
counter-bluff, among competing yet interdependent businesses. This vision of
individuals in tandem with Smith’s view that ‘each individual is constant
exerting himself to find out the most beneficial employment of whatever
capital he can command’, creates a stereotype of the manager who is
paying attention on maximizing return on investment.
Classical strategy
places immense confidence in the keenness and ability of managers to adopt
profit maximizing strategies throughout coherent long-term planning. Porter is
easily located in the classical mould, particularly as his books offer advice
on attain ‘above average industry profits’.
Processual
Approaches To Strategy (1970):
A processual
examination of the firm is one which nominates organizations as association of
individuals, each of whom transports their own personal objectives and cognitive
unfairness to the organization. For these scholars (eg. Richard Cyert, James
March and Herbert Simon) strategy is a continuing process of negotiation as
rational economic man is a fiction and people are only ‘boundedly rational’.
Processual scholars quarrel that because of these limitations strategy become
the slow adjusting of schedule to self-conscious messages from the environment
which ultimately force them on the manager’s concentration. Strategies are not only designed and pursue
action, but it is also a means to make intelligence of the chaos of the globe.
Therefore, strategies are frequently ‘emergent’, their logic grow through
action and supposed in retrospect, while successive little steps eventually
combine into a pattern (Harfield & Hamilton 1997a).
Evolutionary
Approaches to Strategy (1980):
Nevertheless, it seems
that company is not occupied with the ‘ideal of economic man’. Not only do
managers not succeed to locate output at the supposedly profit-maximizing stage
where marginal costs exactly the same marginal revenue, however most managers
lack idea what their marginal cost and revenue curves are! (Hall & Hitch
1939 in Whittington 1993) Enter the experts! Economists familiar to this
business ‘stupidity’ by charter ‘the markets’ do the ‘thinking’. Through this
view of the globe, ‘markets’ not managers select the existing strategies within
a particular atmosphere. For those strategists who remain to the evolutionary
analysis of competition, survivors may emerge to be those who have modified
themselves to the surroundings (Williamson 1991). Competition is the most
successful figure of ‘weeding out inefficiency’ or lack of adaptation, as a
result easy entry into market is the technique to guarantee healthy industries.
Systemic
Perspectives on Strategy (1990):
Granovetter (1985) has quarrel that economic
action cannot be placed in a divide sphere of impersonal financial calculation
as of our social embeddedness. Economic performance is fixed in a network of
social relations; the state, professions, families. These networks control both
the means and the ends of action, identifying suitable and reasonable behavior
for their member. Therefore, personal histories which comprise gender, family
position, educational background, religion, and ethnicity all outline economic
activity. This social constructivist analysis suggests that the model which
lead strategy are not cognitive (Huff 1990), but cultural. Culture, defined as
a sequence of social systems, effects and is precious by firms, industries and
economies (Gergen 1994). Whittington (1993) argues that still with the increase
in overseas trade and foreign investment, the custom of history and society
still matter. It could be that the awfully notion of ‘strategy’ may be
culturally particular to the situation in the United States in the 1950s and
60s.
ü The
phrase of strategy is facilitates by the above quotes, and its meaning by the
different strategists and how it has changed from past to present days. We find
remarkable change or development of strategy from 1960’s to present time. The
mode or approach we understand and interpret in present days is much more
different than in past 1960’s. At that time (1960’s) there is stable political,
legal and economic condition as well as less competition to compete in market.
However, the time is changing nowadays; there is no stable political, legal and
economic situation as well as high competition in between competitors. So at
present strategist need to be more innovative and flexible to offer best
outcomes to the customers, as their demand are increased on their particulars
product or services.
ü Difference
between strategy theory developed in last ten years and those developed in
1960’s can also be illustrated by the strategy theory responses which is
enlisted as follows:
Rapid Adaptation:
As
compared to last decades, today’s customer’s wants and desires as well as
technology are advancing one after another. It is intelligent to articulate
that present date competitive advantage cannot be attained by the means of
positioning strategy or through a unique resource. According to change in environment
different company are changing their strategy. So, sometimes it is very hard to
use habitual or popular tools like as SWOT analysis as it is difficult to
understand and to examine the changing environment or market.
Option Theory:
No
doubt that the porters five forces model help us to identify the position of
the firm, through examining competitive rivalry which is depends upon the
bargaining power of buyers and suppliers, availability of substitute goods and
threat of new entrants. According to changing environment concept, perception
of the business person, customers has been change. Nowadays, it is observed
that competition land from flexibility of organization, so company need to take
care of environment and cope it with changing environment surprisingly. Due to
this, firm needs to be more flexible and loyal than previous time to the
customers, so that it becomes a competitive advantage to the company.
Complexity Theory:
By
observing the current strategy, it can be clearly identify that everything is
unpredictable. The key determinant for adapting the change could may be the
flexibility. For Example: Emergent strategy as every company following this
strategy. Conversely, deliberate strategy require a lot of time for its
implementation which may be change whole scenario of that moment.
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.
ü It
is obvious that strategy job or duties are complex in nature. In previous days
it has been use to attain certain goals and objectives, by the means of
long-term planning. Nowadays the importance, nature as well as sense of
strategy are changed rapidly. Therefore, strategy is constructing the
environment and surroundings, whole organization or company is facilitates to
adjust the change and to be flexible.
ü Our
30 credits year long module “Strategy Choice and Impact” shelter all the
aspects of strategy with the help of different chapter , strategy theories and
strategy models associated to company, entrepreneurs , leaders, followers,
singers with real life and current scenario examples.
ü Every
phrase of strategy is covered by the module from definition; implementations as
well as different strategy models are included. In addition, future of strategy
is clearly delivered through this module. Also, different strategy theory
models are included which develop knowledge and skills and facilitates to make
choices and to implement best strategy in suitable manner. With the help of
this module, we understand and implement different strategy model in the
current world scenario practically.
ü After,
understand different analytical tools such as MC Kinsey 7’s Model, SWOT, TOWS
matrix, PESTEL, Change kaleidoscope, force field analysis, Porters five forces
model and many others. We are able to understand the nature of business and its
problems and implement the best strategy tools or models which handle different
problems effectively and efficiently relating to the organization.
ü To
be strategist, it is important to familiar with interpersonal skills, the
interactive activities including, presentation skills are gained through this
module. In addition, it has also developed our creativity including
interpersonal skills which is necessary to developed strategy. Due to changing
market condition day by day corporations or organizations needs to be flexible.
To be flexible, there is a need of creativity to divert or develop strategies.
Our module is not only related to the definition of strategy but also, it has
applied to real world scenario. Furthermore, we also dealt with different kinds
of case studies relating to this module "Strategy Choice and Impact"
and we try to solve the problem of case studies as far as possible with our
skills, knowledge as well as creativity.
ü Finally,
I gain benefit to become a strategist and future manager which is possible
after studying this module, provides skills and knowledge which is required on
these designation and duties, so I would like to recommend other students to
learn this module as well, so that they gain benefits to become a successful
strategist, entrepreneurs and mangers in future.
1. Why was Lady Gaga been so
successful? "What strategy has she followed?”
Ø Obviously,
there are various things that Lady Gaga followed which facilitate her to be
successful. At first, she locates on the shoulder of Giants like as Madonna,
Glam Rockers such as Queens and Allice Copper to vessel her stage concert,
image and more outstanding music. Gaga is expected to last longer than others
artists who relates with music business. Nowadays because of her appeal across
generation.
Ø No
doubt, Lady Gaga is the symbol of sensation music since 2008, because she sold
more than 15 million Albums, 40 million singles and limitless downloads
worldwide. This is possible due to enormous fans growing day by day which is
clearly observed by visiting the social sites like followers\fans on Facebook
and in twitters. Her followers or fans on Facebook is higher than 10 millions,
also 5 millions on twitter and a first presently artist to accomplish a
billions of views on YouTube are some of her remarkable and unbelievable
achievement though it anyone can see how successful she is in music business
internationally.
Ø Gaga
has been awfully intelligent and smart as well in aware of 3F’s which in fans,
followers and fashion. She has made herself like as brand and trademark at
beginning stage of her carrier. She is also proficient to sustain control over
her music, management and image. She is also an ideal example of continual or
exponent reinvention. Modifying her stage character and public image frequently
as a wealth of sustain the interest and linked of fans and media to be
identical. Due to violent iconography, religious and sexual activities which
draws controversy and attention in her life.
Ø Over
the last decade Lady Gaga marketing and development was quick to adapt to the
changes which decline the music business more or less. The income generated
from the recorded music was decline due to advancement of digital technology
and availability of digital internet file to download easily. Due to this the
she engage more in concert or live performances which become the key source of
income generation. Key source of income for Gaga was the money collected from
selling the concert tickets and her record label, not the videos sales, clearly
demonstrate how properly Gaga have been talented to adapt to changes.
Ø Lady
Gaga and he team clearly recognize the opportunities of social media and the
internet, she formulate the wider use of social media sites such as Facebook
and Twitter, to fabricate her fan base and by individually building the
majority of online concerts. In addition she also stimulates the thoughts of
friendship and loyality by engaging in fans in social sites. She made her
customers loyal by providing the pet name like “monster” and providing them the
videos which she released in future to the general public. Her strength was her
fans which she gains through public relations.
Ø Furthermore,
she made herself as a brand and set the standard by the means of building
society, standing for strong values, word of mouthing marketing and creating
the loyalty. The important thing she teaches us is that it is not necessary to
wear outlandish attire to be a pop star, or to attain the reward or
recognition.
2. If you were advising her on her
future strategy – what analysis would you undertake? What model will you use?
· If I had to give the advice to Lady Gaga
concerning her future strategy, then I almost certainly use two models or
theories among four strategy theory responses, which are as indicated through
the bold letters below after the figure of Gaga's Music Albums (2008-2010) with published date :
Strategy
Theory Responses:
ü Complexity
Theory,
ü Option
Theory.
ü Rapid Adaptation Theory.
ü Creative and Strategic Thinking
Theory.
·
Rapid
Adaptation Theory:
This theory suggest us that competitive
advantages is no longer arises from positioning or resources but achieved
through adapting the changing environment. The four capabilities that
organization that foster rapid adaptation are:
Ø Ability to encourage
partners and employees through motivating them.
Ø Ability to
experiment quickly and regularly – not only with products and services but also
with business process, models as well as strategies.
Ø Ability to read
and acts on indicator of change.
Ø Ability to supervise complex and interconnected systems of several
stakeholders.
·
Creative and
Strategic Thinking Theory:
The main two elements of this theory are:
Ø To widen and develop a culture and ethnicity which promote
creativity:
There are the
different managerial activities which affect the creativity which are freedom,
resources, challenge, organizational support, supervisory encouragement and
work group features.
Ø Thinking outside the box:
If competitors
can notice a pattern they can forecast the next competitive move. Accordingly
surprise, irregularity, even clear irrationality can be significant. Also, Managers
have to learn ways of appearing unpredictable to the external globe whilst,
thinking strategies through internally"
References:
1. Gergen,
KJ (1994) Realities and Relationships: Soundings in Social Construction
Cambridge: Harvard University Press
2. Granovetter,
M (1985) ‘Economic action and social structure: the problem of embeddedness American Journal of Sociology 91:
481-510
3. Grant,
R and Jordan, J (2012) Foundations of Strategy, Wiley, chapter 10.
4. Harfield,
T & R Hamilton (1997a) ‘Journeys in a declining industry’ Journal of
Organizational Change Management 10(1)61-70
5.
Hassard,
J & M Parker (1993) Postmodernism and Organizations London: Sage
Publications
6.
Huff, AS (1990) Mapping Strategic
Thought Chinchester: John Wiley & Son
7. Richard
D'Aveni in Johnson & Scholes & Whittington (2007) Exploring Corporate
Strategy, pg239.
8.
Williamson,
OE (1991) ‘Strategizing, economizing, and economic organization’ Strategic
Management Journal 12: 75-94
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