Prescriptive and emergent strategies

This approach combines new ways of thinking with available resource and technology to innovate various designs which can be implemented to create competitive advantage.

Strategy formation which places a lot of weight on existing capability strengths is thought to be a secure basis on which a firm should define itself and optimize its position, particularly in times of rapid and turbulent change.

Companies should create flexible strategic plans, and then, amend it from time to keep it alive and meaningful. An emergent approach leads to more creative and responsive strategy making which is well suited to the hyper-competitive and unpredictable environments of today.

An Emergent Strategy - A Radical Approach to Strategy Setting

As a result, organisational creativity can be stifled and employee dissonance may occur as it is at these levels that work processes are most fully understood.

Rather than waste the wings, he deep-fried them and offered them to his customers. This type of involvement is frequently found in small or medium sized businesses. Strategy may be distinguished in content what is involvedprocess how it is done and context where it is done: Without strict analysis and identifiable targets, objectives can lack clarity and there may be no real basis Prescriptive and emergent strategies evaluating performance.

The website accompanying my book Strategic Management 5th edition has a film that explores in depth the differences between prescriptive and emergent strategic processes. International and global activity will stretch the resources of many organisations, even those that are already deeply involved internationally.

Senior management is in charge of defining the final objectives and the plan is then put into action through the successive layers of the organisation. It takes into account the organisations position for the future using SWOT analysis, strategic planning, environmental scanning and scenario playing.

Scott Cook on Emergent Strategy Video For example, Sam Waltonthe founder of Walmart, built his stores close to his first store in rural settings rather in big population cities, because it was easier from him to manage.

The Prescriptive and Emergent Approaches to Strategic Management

Some of these are highlighted in the emergent strategy process model shown above right. Descriptive managers, on the other hand, accept that the decision-making environment can be unpredictable.

Chapter 15 Managing Strategic Change When new international and global strategies are developed and introduced, there are typically people issues.

Advantage & Disadvantage of Emergent Strategy

But then Blackberry RIM added a global strategy — for example, its co-operation with the Reliance mobile network in India shown right — to add to the basic strategy.

It also has the added benefit of helping to reduce resistance to change as it allows time to build employee support while the strategy is taking shape. Presents examples of firms following such approaches and results they obtained.

The essence of strategic management is to address the over-all long term directions of the company, using SWOT analysis to create the appropriate strategy to cushion changes in the future of the business. According to one recent authoritative survey amongst academic strategists Nag et al,Strategic Management Journal,Vol 28, pagesthere are two main streams of thought related to strategic process: You may like to know that the four previous editions of the book were called Corporate Strategy: In a company that uses a prescriptive style, managers focus on the strategy formulation process.

Discussion The central aim of strategic planning is to achieve a competitive advantage for higher profits. In a company that uses a prescriptive style, managers focus on the strategy formulation process. The chapter explains the main issues and sets out some of the key ways that innovation can be directed to achieve international success.

Their logical, analytical approach allows them to devise predictive and pre-emptive strategies from which they can meet new opportunities head on. The marketing strategy is either made implicit in the strategic plan or an explicit subsection of it.

They do not take changing conditions into account. The strategy is actually the basic pillar on which business plan is established. Content Prescriptive and descriptive strategic management differ in the formulation of strategy. Singapore airlines, Spiller foods and Google are firms that engaged in prescriptive approach, unforeseen environmental activities like Sept.

Descriptive strategic managers care more about what the managers decide rather than how they decide it.

Prescriptive and Emergent Approaches to Corporate Strategy

This type of involvement is frequently found in small or medium sized businesses. The logical approach implies that strategy development is always deliberate and that strategies are realized according to plan.

Emergent approach to strategic planning is also criticized for making the strategic planning a short term activity. Different Outcomes In addition, descriptive and prescriptive strategic management do not share the same desired outcome. An emergent strategy is not predictable because it arises out of a specific set of circumstances that a business owner could not anticipate.

In fact, in many instances, emergent strategies do not become apparent until the deliberate strategy that was originally implemented, fails to produce the. Most viable strategies in today's business world should have customized elements of prescriptive and emergent strategies in order to manage the.

Corporate Strategy 2 Prescriptive Strategy 2 Emergent Strategy 2 2. Abstract Evidence 3 Changing on Facebook’s target customer 3 Facebook’s Daily Deals service in US 4 Facebook competing Google 4 The products and technology development of Facebook 5 3.

Prescriptive & Emergent Strategies Prescriptive & Emergent Strategies Prescriptive & Emergent Strategies Context Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of?rms in their external environments (Nag,,Pp).

Thus the early stages of emergent strategy may be similar to prescriptive strategy – analysis of the environment and resources.

Prescriptive and Emergent Approaches to Corporate Strategy

But then the process becomes more circular, learning and experimental. As described earlier vision, mission and leadership are common elements of both prescriptive and emergent strategies. However, objectives are usually not well-defined in the emergent approach.

Rather emergent strategies shape according to the circumstances and environmental factors.

Advantage & Disadvantage of Emergent Strategy Prescriptive and emergent strategies
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