The planning school of thought is a formulation that strives to make a fit between the strategy that a business has and the environment in which it is operating in (Ritson, 2013). Credit for the planning school goes to Igor Ansoff and K. Andrews (Flevy, August 2013; Ritson, 2013). The planning school is centered on a formal process that takes a rigorous approach focusing on detailed and inflexible planning (Sandberg, 1992). The planning school’s contribution to businesses is based on the ability to give clear directions and ensure resource allocation (Flevy, August 2013) . The planning school of thought is ideal for organizations that operate under tight control. Business models that use the planning school include: Scenario planning, Parenting style, Levers of control and the Theory of Mechanistic and Organic systems. The planning school of thought has limitations. There is a tendency for groupthink and can become too static. Prediction is difficult and as such it is not suitable for an unpredictable market. The ...
... middle of paper ...
...ning school places the business in the context of its industry and how it can improve its position within the industry. The resource-based school focuses on the internal resources available to the organization. It is important to understand different formulations in order to pick the perfect fit.
Flevy. (August 2013). Ten Schools of Thoughton Strategic Management. Retrieved February 1, 2014, from http://www.slideshare.net/flevydocs/ten-schools-of-thought-on-strategic-management
Mission Statements. (2014). Retrieved January 31, 2014, from http://www.missionstatements.com/hospital_mission_statements.html
Ritson, Neil. (2013). Strategic Management. In Bookboon (Series Ed.)
Sandberg, William R. (1992, 1992 Spring). Strategic management's potential contributions to a theory of entrepreneurship. Entrepreneurship: Theory and Practice, 16, 73+.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Management plays a significant role in how business operates. Strategic management has improved tremendously the last forty years. The diversity of approaches to the theoretical and practical background of management has come up with versions of what is meant by such key words as management and organization. The academia views expressed in relation to management theories take a different role than that prescribed to managers. Though there are several schools of thought ten dictate the current thinking on strategy.... [tags: managers, management, business,]
785 words (2.2 pages)
- Rational Vs Irrational School of Thought Approach Toward Strategic Management Introduction Managers face no greater challenge than that of strategic management, guiding a complex organisation through a dynamic; rapidly changing environment requires the best judgment. Strategic management are invariably ambiguous and unstructured, and the way in which management respond to them determines whether the organisation will succeed or fail. What is a Strategy. Strategy refers to top management’s plan to obtain outcome consistent with the organisation mission and goals.... [tags: Business Management]
1830 words (5.2 pages)
- Question 1: Hayes and Wheelright (1984) and Mintzberg (1987) spoke of strategy as a pattern of decisions. What do they mean by this. (5 Marks) Strategy is the pattern of decisions determining the organization’s objectives, purposes, or goals. It outlines the principal policies and plans for achieving those goals, and clearly defines the range of businesses the organization has to pursue. Strategy as a pattern of decisions also highlights the nature of human and economic organization it intends to be, and the nature of the economic and noneconomic contribution it intends to make towards its stakeholders, mainly, the shareholders, customers, employees, and communities.... [tags: Strategic Manufacturing Management Essays]
3524 words (10.1 pages)
- 1. Management problem and context  730 Proposed title: Using CSI as a long-term strategic business tool to address the shortage of talent in critical skills areas in the South African aviation industry: A South African Airways case study Or Devising a long-term CSI strategy that addresses the shortage of talent in critical skills areas in the South African aviation sector: An SAA case study OR Understanding the importance of corporate social investment as a long-term strategic tool for a business: A South African Airways case study ‘Few trends would so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social resp... [tags: Management, Strategic management]
1231 words (3.5 pages)
- Evaluate the suitability of the emergent and intended approaches to strategy management for your chosen organisation. 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".... [tags: The Virgin Group]
2066 words (5.9 pages)
- 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.... [tags: GE Case Study]
2060 words (5.9 pages)
- Strategy is the formulation and execution of high level action plan to achieve the group’s goals or, objectives. The group can comes under the framework of an organization or, an institution; where group can be engage in war action or, in policy making or, in managerial practice in any other institutional activities. The approach of strategy could be start from top or, bottom; depending upon the type of activities (Freedman, 2013). Strategy is important for a group to achieve the group’s goals because every group has limited resources and group leader have to be liable for achieving the group’s goal in the minimal resources by mobilizing and utilizing them properly.... [tags: Management, Strategic management, Organization]
849 words (2.4 pages)
- Large and small businesses, governments, and schools strive to build the next new gadget, manage resources more efficiently, and teach or train in more creative ways. If they set out blindly on a task without proper oversight and thought about the process, then surely the result would be a dismal failure. Project management enables these entities, and various others, to carefully consider the many variables before, during, and after the project actually takes place. Project management refers to the careful planning, organization, and management through a single one-time activity.... [tags: Project management, Management]
986 words (2.8 pages)
- Schools of Strategy and Example for Each Strategy The three “schools” of strategy There are various schools of strategy that have been vigorously debated on and after a consolidated effort; three schools of strategy were produced. They are the planning school, the positional school, and the resource based school of strategy (Ritson, 2013). All these strategies will be described with examples to buttress each. Describing the three schools of thought and provides an example of each. The planning school of thought is a strategy that emphasizes the need for an organization to ensure that its business strategy is in alignment with the environment that it operates.... [tags: Strategic management, Management, Marketing]
712 words (2 pages)
- TABLE OF CONTENTS Introduction 1 Discussion 2 Talent Management 2 Theoretical Underpinnings 3 TGI Fridays Organisation (For Profit) 5 Wales & West Housing Association (Not For Profit) 5 Compare and Contrast 6 Reviewing Two Schools of Thought 9 Conclusion 11 REFERENCES 12 Organisational Behaviour Introduction In recent years due to globalisation, there have been major shifts observed in business activities of both profit and not for profit organisations. To face global and competitive challenges, organisations are now operating in a different manner as compared with the past trends and records.... [tags: people management]
3347 words (9.6 pages)