School of thought on strategic management (II)

1. The design school (strategy as a process of conception)
2. The planning school (strategy as a formal process)
3. The positioning school(strategy as a analytical process)
4. The entrepreneurial school ( strategy as a visionary process)
5. The cognitive school (strategy as a mental process)
6. The learning school (strategy as an emergent process)
7. The power school (strategy as a process of negotiation)
8. The cultural school (strategy as a collective process)
9. The environmental school (strategy as a reactive process)
10. The configuration school (strategy as transformation)



School of thought on strategic management (I)

Strategy as Design: “…This takes the view that strategy development can be a logical process in which the forces and constraints on the organization are weighed carefully through analytical and evaluative techniques to establish clear strategic direction…”

Strategy as Experience: “…here, the view is that future strategies of organizations are heavily influenced by the experience of managers and others in the organization based on their previous strategies…”

Strategy as Ideas: “…Neither of the above lenses is especially helpful in explaining innovation. Design approaches risk being too rigid and top-down; Experience builds too much on the past. How then do new ideas come about? The Ideas lens emphasizes the importance of promoting diversity in and around organizations…”

Strategy as Discourse: “…This lens sees strategy in terms of language. Managers spend most of their time communicating. Therefore commands of strategy language become a resource for managers by which to shape “objective” strategy analyses to their personal views and to gain influence, power and legitimacy…”

Johnson, Scholes & Whittington (2008)

Strategy & strategic management

A strategy is a long term plan of action designed to achieve a particular goal. It is differentiated from tactics which incorporate short term activities Strategic management is the ongoing process of specifying the organization’s objectives, developing plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization’s objectives.

With regard to it’s etymologic origin the word “strategy” derives from the Greek word stratēgos, which derives from two words: stratos (army) and „Agein“ (ancient Greek for leading). Stratēgos referred to a ‘military commander’ during the age of Athenian Democracy. In its purest form, strategy dealt solely with military issues.

According to Michael Porter „Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value.“ So the purpose of strategic management is to gain sustainable competitive advantages in the market.

The formulation of a sound strategy facilitates a number of actions and desired results that would be difficult otherwise. A strategic plan, when communicated to all members of an organization, provides employees with a clear vision of what the purposes and objectives of the firm are. The formulation of strategy forces organizations to examine the prospect of change in the foreseeable future and to prepare for change rather than to wait passively until market forces compel it. Strategic formulation allows the firm to plan its capital budgeting.
On the other hand, a firm without a clear strategic plan gives its decision makers no direction other than the maintenance of the status quo. The firm becomes purely reactive to external pressures and less effective at dealing with change. In highly competitive markets, a firm without a coherent strategy is likely to be outmaneuvered by its rivals and face declining market share or even declining sales.

Barriers in communication

Muddled messages – the sender let the receiver unclear about the intend of the sender
Stereotyping – causes people to act as if they already know the message that is coming from the sender or worse, as if no message is necessary because everybody already knows.
Wrong chanel – oral, written, video comunication used when another would be necessary
Language – each new employee needs to be taught the language of the company
Poor listening skills – not being prepared to listen
Interuptions – cause by something more pressing, rudeness, a drop-in visitor, an emergency
Physical distractions – different kind of noises

Article: Overcoming barriers to comunication by B.L. Erven from Ohio University

Verbal Communication Barriers
Attacking (interrogating, criticizing, blaming, shaming).
“You Messages” (moralizing, preaching, advising, diagnosing).
Showing Power (ordering, threatening, commanding, directing).
Other Verbal Barriers: shouting, name calling, refusing to speak.

Nonverbal Communication Barriers
Flashing or rolling eyes.
Quick or slow movements.
Arms crossed, legs crossed.
Gestures made with exasperation.
Poor personal care.
Staring at people or avoiding eye contact.

What is service?

Services are economic activities offered by one party to another, most commonly employing time-based performances to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility.
In exchange for their money, time and effort, service customers expect to obtain value from access goods, labor, professional skills, facilities, networks and systems; but they do not normally take ownership of any of the physical elements involved.

Services Marketing by C. Lovelock and J. Wirtz