Week 27

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

Before the 1960s, strategy was referred to as “generalship”, “the art of war” and being concerned about managing army campaigns1. Strategy was first used in the conduct of business in the early 1960s by Chandler2, who developed strategic concepts along the thoughts of the industrial economics school3, business policy, and into a prescriptive model with objectives set by the management group which utilized defined strategies to attempt achieving their goals in what was termed corporate strategy. (Murray Hunter, University Malaysia Perlis)

Strategy has been evolved through its practical needs of business rather than its developed theories. Previously in 1960s, the factors influencing the business were mostly government intervention, inflexible labor market, less competition, fewer market share and traditional types of political rules and regulations. Due to these reasons, the strategies then were different. Business firms focused on "doing things right" and their strategies were mostly planned. Their objective was to increase efficiency and operation of the organization by following the rules.

Things have changed now a days. The process of strategy making are named as emergent and intending, where strategies are made for effectiveness  practically depending on the internal as well as external changes and the environmental factors. Likewise, globalization has made the market more large, the labor maker has expanded, there is larger market share with more competitors, environmentalists and activists are born  and consumers are being more aware. Following these factors and changes in the world, business organizations have to make their strategies accordingly. Thus, strategies have to be more effective and always tend to achieve competitive advantage.

The major theories that explain the trend in strategy are:

Complexity Theory:

This theory claims that strategy of an organization is influenced by unpredictable nature of the market. It identifies how to self organize its business along with the collective behavior to adapt change and evolution.  

Options Theory:

This theory claim that the competitive advantage comes from the flexibility of a business.  The unpredictable market make the business aware to keep their option open. The business should mainly focus on their competitive advantage ad try to enhance them as well.

Rapid Adaptation:

Globalization is being rapid presently causing the fluctuation of the market and development in the technological advancement. These changes have made the market difficult to focus on its competitive advantage and to determine the strategies.

Four organizational capabilities that foster rapid adaptation: (Reeves M. and Daimler M. , 2011)

·                     The ability to read and act on signals of change

·                     The ability to experiment rapidly and frequently—not only with products and services but                           also with business models, processes, and strategies

·                     The ability to manage complex and interconnected systems of multiple stakeholders

·                     The ability to motivate employees and partners.

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.

We have strategies in our daily life, mostly a short one which is related to our life. Theoretically, we have understood different analytical tools like McKinsey's 7's Model, SWOT and TOWS matrix, PESTEL analysis, Change Kaleidoscope, Porters Five Forces Model, Force Field analysis etc. We have also applied these tools in various business firms around the world  and also understood the nature of a business, its strategies, problems etc.

Likewise, a strategist must have characteristics like interpersonal skills, interactive skills, creativity, flexibility, presentation skills, adaptability, communication skills etc. Likewise, a strategist must keep in mind the internal organizational factors as well as the external environmental factors. They must be aware of their competitors and consumers as well.

 This module has helped us to gain and understand these skills and how strategies have applied these characteristics in real life. The practical knowledge and research done have helped us to developed our personal skills too.

References:

Murray Hunter. Evolution of Business Strategy. [Online] Available at: http://works.bepress.com/murray_hunter/12/ (Accessed on 4 January 2014)

Reeves M. and Daimler M. (2011) ‘Adaptability: The New Competitive Advantage’, Harvard Business Review, July-August, pp135-141