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
