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MN6003NT: Strategy

Choices and Impact


Week 2: Tutorial

Dakshata Shah (PhD)


Islington College, Autumn 2019

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Agenda for Today
• Strategy Art, Craft, or Science?
• Difference between intended strategy and
emergent strategy

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Learning objectives

1. Is strategy science or art and craft?

2. Difference between intended strategy and emergent


strategy

3. Strategy School of Thoughts

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IS STRATEGY SCIENCE OR ART
AND CRAFT?

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Is Strategic Management; Art, Craft or Science?

Art
Vision, Creative Insights

Strategic Management

Science Craft
Analysis, systematic evidence Experience, Practical Learning

source: from Mintzberg, H(2009) Managing, Prentice Hall,

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Is Strategy an Art, Craft or Science?

Science-like Art and Craft-like

• Strategy as a single person • Strategy as a group activity


analysing and making logical that involves conflict, politics
recommendations and compromise

• Strategy as a rational, • Strategy as a creative and


formulaic application of unpredictable process
analytical tools or a set of rules
• Strategy as exploratory and
• Strategy as formulation and emerging
then implementation

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INTENDED STRATEGY AND
EMERGENT STRATEGY

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Should strategies be planned out in
advance or allowed to unfold?

‘Prescriptive (Deliberate or Intended)


strategy’ is when strategy is planned
carefully in advance

‘Emergent strategy’ is when companies


respond to market and environmental
forces, rather than ‘prescribe’ a long-term
plan.
source: Lynch, R (2011) Strategic Management, 6th Edition, Pearson Education, Chapter 1

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Jack Ma on Alibaba Strategy

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Patterns of Strategies
• Intended and Emergent Strategy
Most strategies are a combination of intended and
emergent processes

Source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson Education, Chapter 12
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Source: De Wit, B and Meyer, R (editors) (2010). Strategy: Process, Content, Context Ed4. Thomson International
Business Press: London.
Patterns of Strategies
• Intended and Emergent Strategy
Most strategies are a combination of intended and
emergent processes
Intended Emergent
v Planned v Emerges incrementally

v Figuring out – analyzing v Finding out - exploring

v Formal, structured v Informal, unstructured

v Think then Act v Trial and error

v Forecast v Experiment

v Strategic Planning v Strategic Thinking

Source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson Education, Chapter 12
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Source: De Wit, B and Meyer, R (editors) (2010). Strategy: Process, Content, Context Ed4. Thomson International
Business Press: London.
Intended and Emergent
Strategies
• According to Mintzberg, H., and Waters, J., A. . 1985

Deliberate
Intended Strategy
Strategy

Realised
Unrealised Strategy
Strategy

Emergent strategy

source: Mintzberg, H., and Waters, J., A. . (1985). "Of Strategies, Deliberate and Emergent." Strategic Management Journal (pre-1986), 6(3), 257.

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Mintzberg Forms of Strategy
• Intended strategy

• Unrealised strategy

• Emergent strategy

• Realised strategy

source: Mintzberg, H., and Waters, J., A. . (1985). "Of Strategies, Deliberate and Emergent." Strategic Management Journal (pre-1986),
6(3), 257.

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Mintzberg Forms of Strategy
• Intended strategy
– Expression of desired strategic direction deliberately formulated or
planned by managers
• Unrealised strategy
– Frequently strategies do not come about in practice
• Plans are unworkable
• Environment changes
• Influential stakeholders do not agree with plan
• Emergent strategy
– Comes about through everyday routines, activities and processes
• Realised strategy
– The strategy actually being followed by an organisation in practice

source: Mintzberg, H., and Waters, J., A. . (1985). "Of Strategies, Deliberate and Emergent." Strategic Management Journal (pre-1986),
6(3), 257.

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SHOULD STRATEGIES BE
PLANNED OUT IN ADVANCE
OR ALLOWED TO UNFOLD?
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Patterns of Strategies

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Example of TELCO: Mission and
Vision Statement

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STRATEGY SCHOOL OF
THOUGHTS

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Mintzberg et al. Strategy Safari
Argues that there are 10 major
school of strategy thought.

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10 major school of
strategy thought
1. Design – strategy as process of deliberate formulation
2. Planning – strategy as a formal process
3. Positioning – strategy as an analytical process
4. Entrepreneurial – strategy as a visionary process
5. Cognitive – strategy as a mental process
6. Learning – strategy as an emergent process
7. Power – strategy as a process of negotiation
8. Cultural – strategy as a collective process
9. Environmental – strategy as a reactive process
10. Configuration – strategy as a process of transformation
source: Mintzberg, Ahlstrand and Lampel (2009) ‘Strategy Safari’ Edition 2, FT Prentice Hall, Chapter 1
• Thought for Poster Presentation:

Can you think why your


organisation have a really strong
competitive position in their
market/industry?
Task:
• Conduct background research for your
choose company for Workshop Class
• Bring 10 key information to class for W2
Workshop
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THANK YOU !

bba.admin@iic.edu.np
dakshata.rana@ingnepal.com

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