Literature Review
Introduction
The theories on strategy development and associated concepts of strategic thinking and strategic leadership are becoming more and more popular in today’s business environment. Leaders possessing strategic skills could turn to be the best strategy of their own as well as for their respective organizations.
Meaning of Strategy
Today the word ‘strategy’ is so prevalent that there are hardly any people who know nothing about it. Conversely, with this prevailing feature of the word, there is incredible disarray on its meaning. Analysis of literature showed that there are innumerable definitions, many of which have certain common features.
Johnson et al. (2005) define strategy as “the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations” (p.7). While Liddell Hart brings a brutal aspect to strategy when he concludes that it is "the art of distributing military means to fulfill the ends of policy."
Mintzberg (1998) reasoned a more pride and extended approach definitions of strategy doesn’t show the whole scope of the word (p.9). In this context Mintzberg (1998) refers to strategy as a plan. Apart from this, strategy is a pattern, which means consistency in actions and behavior over time. He opines that it is possible to subdivide strategies into intended and realized. Those intentions that are realized are deliberate strategies, while those that are not are unrealized strategies. The third definition of strategy offered by Mintzberg (1998, p. 12) is the one as a position. It means locating of certain products in certain markets. The fourth de...
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...about How to Improve Strategic Processes within the Organization
The implementation of strategy should be organized by selection of specific strategic objectives, on which attention of the staff should be focused. They should be separated from the rest of the current activities.
It is also recommended for GE to consider the six silent killers of strategy implementation defined by Beer and Eisenstat’s (2000).
These barriers create a backbiting power to strategy execution despite that top executives assented to it. To reinvigorate the agents of change and make sure that strategy is successfully executed, GE plans to build capabilities required to counter these killers.
Conclusion
Undoubtedly, strategic thinking and strategic planning processes are complex and require close attention on the part of management aspiring to be successful in its respective field.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
Grant, R. M. (2013) Contemporary Strategy Analysis – Text and Cases (8th Ed.) Publisher: John Wiley & Sons, Ltd
In the book, “Good Strategy/Bad Strategy the Difference and Why it Matters,” by Richard P. Rumelt describes the difference between the two strategies by providing different examples. The book is divided in three different parts the first part consists of “Good and Bad Strategy,” followed by the “sources of power,” and the last part consists of “Thinking like a Strategist.” In the introduction chapter Rumelt describes how good strategy looks simple and obvious not requiring much to explain. He furthermore says that such strategies do not come from some tool or chart it is however identified by a talented leader who highlights one or two critical situations. The author says the most important responsibility of a leader is to identify the biggest challenges in order to progress further and find ways to overcoming those challenges. The book is driven by lifetime experience as consultant of organizations, personal adviser, teacher and a researcher. Good strategy is concentrates on solving the problem. However, bad strategies skip problems and focus on multiple conflict demands and interest.
The definition of strategy has been given by many theorists. The most approve one for personal is stated by Johnson, Scholes and Whittington: “Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson, Scholes, and Whittington, 2008) For
Good Strategy/ Bad Strategy is not only a published piece meant only to apply to those in the business place. No, it is a public service announcement to society, urging everyone to open our eyes to the lack of strategy around us. Rumelt, through a great deal of case analysis’, shows that even our governing forces are greatly made up of strategy-less individuals, or even worse, individuals who actively practice bad strategy. Overall, this publication’s main takeaway is to obtain the tools necessary to identify the difference between this fluff and actual strategy and hopefully apply strategic thinking to your personal
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
Gamble, J. E., Peteraf, M. A., Strickland III, A. J., & Thompson A. A. (2012). Crafting & Executing Strategy: The Quest for Competitive Advantage. New York, NY: McGraw-Hill Irwin.
More and more, experts in the field of strategic planning and management are advocating for more attention to be paid on strategic thinking, and recommending for it to be considered a separate and distinct stage in the strategy planning and executing cycle. Results from the strategic thinking exercise feeds directly into creation of the strategic vision, which according Thompson, Strickland & Gamble (2008) is the first phase of a strategy-making, strategy executing cycle.
John G. S., 2008: Strategically thinking about the subject of Strategy [e-journal] 9(4) p.2 Available through:
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
There is no doubt strategy development is a tough and timely process, however, the strategy implementation across the organisation is considered even more problematic and challenging. No business strategy can be succeeded without effective execution. In the real market, the majority of managers are more informed and experienced for the strategy development other than strategy execution. This essay addresses some of the key challenges and barriers of strategy implementation.
Throughout the global economic environment the desire to out-perform the competition is always present. In every situation, the companies who do better are the ones with superior strategy (Rothaermel, 2013). Strategic management is therefore important in every company, no matter what industry or market they operate in; and as stated by M. Carpenter and G. Sanders, 2013, is described as "The process by which a firm manages the formulation and implementation of its strategy". Strategic management is a constant topic under discussion with different schools of theorists with different beliefs and attitudes which is described as "A tense array of disagreement" (Rees, 2012).
...c management or planning presents a structure or agenda for dealing with issues and solving problems, therefore, understanding potential risks or pitfalls of strategic management and being prepared to deal with them is critical and vital to success. Strategic management not only permits top leaders and managers to be more proactive than reactive in building or developing their own potential or outlook in an organization, and it also lets them to make the first move and influence activities, consequently, executives and management can control or in charge of the company’s own future, and achieve its main goals and objectives. Overall, increasing cost-effectiveness and efficiency, improving the value for its stakeholders, and advancing customer services and management excellence are the key objectives of strategic management and decision making in an organization.
Strategic thinking processes will then be assessed, with a comparison of strategic thinking and strategic planning, looking at the similarities and differences between the two. The positive and negative effects that strategic thinking can have on organisational performance will also be described.