- 10 Marks
Title: BMIS – L1 – QD5 – Business Strategy
Question
(a) The strategic management process is sometimes described as having three stages: strategy analysis, strategy formulation, and strategy implementation.
Required:
Describe the nature or purpose of each of these three stages.
(b) Mintzberg argued that the process of strategy analysis, formulation, and implementation does not provide a realistic description of strategic management. He argued that the strategies implemented by an entity are a combination of deliberate and emergent strategies.
Required:
Explain the difference between a deliberate strategy and an emergent strategy. Give an example of an emergent strategy.
Answer
(a). Strategy analysis is the process of assessing the strategic situation (perhaps using techniques such as SWOT analysis) and identifying different alternative strategies that might be chosen to pursue the entity’s objectives. The preferred strategy is then selected.
Strategy formulation is the process of developing plans and establishing targets for achieving the selected strategy.
Strategy implementation is putting the strategic plans into operation, and monitoring actual progress by comparing actual achievements against the targets.
(b). Mintzberg argued that some strategic plans might be developed and implemented in this rational way. These are deliberate strategies.
More usually, planned strategies often do not go according to plan, because unexpected developments occur that alter the situation. As a result, some of the planned strategies might be abandoned, and new strategies selected in response to the new circumstances. A strategy adopted in order to take advantage of an unexpected opportunity is an emergent strategy. Mintzberg argued that the strategies of entities are a combination of deliberate and emergent strategies.
- Tags: Deliberate Strategy, Emergent Strategy, Mintzberg, Strategic management
- Level: Level 1
- Uploader: Samuel Duah