Reference no: EM133855992

Discussion Post: Real World Strategy Formulation

Focus our attention on the study of strategy-what it covers as well as its theoretical basis. We will also start to examine where we can get information about strategy and the best sources of scholarly insight about strategic management. Strategic management tends to fall into two types: prescriptive strategies and emergent strategies. Prescriptive strategies are those where, after planning and analysis, a large-scale course of action is determined as the means to achieve competitive advantage, and strategy is implemented and interpreted throughout the organization. Emergent strategies occur when an organization discovers new information about their customers, technology, marketplace, regulatory environment, et cetera, that requires some response at a strategic level. The strategy arises and may be changed within the ranks of management. This often involves deliberate organizational learning and dialogue and may involve some exercise of influence and political power.

One example illustrating the difference between these two types of strategy is tablet computers. While Apple's research and development staff was designing the iPad, the company closely held information about the tablet's features, functionality, et cetera. This is an example of a prescriptive strategy. On the other hand, many of the android manufacturers took an emergent approach and had to respond to the new technology in their industry. Early on, their approach was, "We can do that too." As Apple revealed new features, androids followed suit. An interesting variable that impacts the strategy for both is the role of research and development. With Apple, research and development is centralized, while the android tablets and phones work in an open architecture-pretty much anybody can invent new applications and code for it. This leads to some interesting differences in strategic management.

In their 2008 article "Can You Say What Your Strategy Is?," Collis and Rukstad found that one particular financial services firm using a prescriptive strategy gained a competitive advantage over those companies with an emergent strategy because the majority of their managers within the firm could articulate the strategy. Although these two types of strategies exist, ideally a company would have a hybrid approach. You would research and develop a clear organizational direction for the strategy, but you would also have elements of emergent strategy to stay flexible to account for changes and unforeseen events.

Throughout the course, you will apply the scholar-practitioner model for your studies. You will be learning the foundations of strategy and completing academic study. However, you will also be testing those elements with real organizations. An important task for this week is thinking of a real organization that can serve as a touchstone you can use to evaluate the theories, principles, and practices to see if they are present and if so, how are they working. This does not require you to be a CEO of a corporation or to have direct access to an organization. You are going to learn how to infer an organization's strategy based on organization publications and strategic management practices.

Real World Strategy Formulation

Collis, D. J., & Rukstad, M. G. (2008). Can you say what your strategy is? Harvard Business Review, 86(4), 82-90.[u01d1] Week 1 Discussion: Real World Strategy Formulation.

As you have likely gathered from the week studies, a variety of schools of thought, approaches, theories, and models potentially inform the creation of strategy. For this discussion, you have the opportunity to reflect on your own experience with strategy formulation and determine the theoretical basis that may be present. Locate a scholarly article that supports your experience of strategy and respond to the following questions:

1) How have you experienced strategy formulation in your previous or current workplace?
2) How does the strategy get formed? Who is responsible?
3) How would you describe the organizational and cultural context of the strategy?
4) What theoretical foundations of strategic development are visible?