Traditional Approaches of Strategy Management
Added on 2023-04-11
11 Pages2654 Words246 Views
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Strategy, Change and
Innovation
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Strategy, Change and
Innovation
2 | P a g e
Table of Contents
Introduction ..................................................................................................................................... 3
Traditional Approaches of Strategy Management .......................................................................... 3
Limitations of Traditional Approaches ........................................................................................... 5
Popularity of Business Models with Strategic Management .......................................................... 6
Recent Approaches of Strategy Formulation for Value Creation ................................................... 7
Conclusion ...................................................................................................................................... 9
References ..................................................................................................................................... 10
Table of Contents
Introduction ..................................................................................................................................... 3
Traditional Approaches of Strategy Management .......................................................................... 3
Limitations of Traditional Approaches ........................................................................................... 5
Popularity of Business Models with Strategic Management .......................................................... 6
Recent Approaches of Strategy Formulation for Value Creation ................................................... 7
Conclusion ...................................................................................................................................... 9
References ..................................................................................................................................... 10
3 | P a g e
Introduction
Strategic management is the stream of management decision making, where actionable items and
relative decisions are formulated based on pre-defined goals. The goals of an organization can be
short term or long term, can result as an outcome of visions or missions decided by the
organization. Therefore, strategic actions are majorly the step by step approach towards attainment
of desired goals to meet the business expectations.
Business in todays scenario is a very complex procedure. It has many undefined and unknown
variables that are subjected to change very dynamically (Meyer, Neck and Meeks 2017). With the
changing scenarios the requirements, the strategies and the action plans become obsolete very
quickly. Therefore, a lot of strategic initiatives are taken keeping the change factor in mind. But it
was not always like that, in the earlier days of business and industrial revolution, when the people
started developing work streams of their own, the market instability was not that high and risks
factors were limited. The methods being followed during that time were relatively traditional
(Trigeorgis and Reuer 2017). The following part of the essay analysis the traditional business
strategy management in comparison to the modern approaches and business models being adopted
to reduce business risk parameters.
Traditional Approaches of Strategy Management
Strategic management is one of the crucial activities that business decision makers perform. They
visit and revisit the defined approaches and practices in use for business growth. With
modernization, globalization and multi-national business growth, the demand of business with
market risks have been rapidly flowing with unknown factors (Wheelen, et al. 2017). This scenario
is very common in recent times.
During the earlier days of business, when having and doing a business was not a very common
practice, there were only limited people intending to invest and perform a completely independent
activity of business and trade. The methods of business were not very evolved and there were not
many suggestions and models to analyze and check the dynamics of market. Also, the primary of
goal of any business in those times was to maximize profit and all other factors were less
significant and had less priority (Engert, et al. 2016). As time folded, the significance of
competencies, internal and external organizational analysis and value creation started taking roots
Introduction
Strategic management is the stream of management decision making, where actionable items and
relative decisions are formulated based on pre-defined goals. The goals of an organization can be
short term or long term, can result as an outcome of visions or missions decided by the
organization. Therefore, strategic actions are majorly the step by step approach towards attainment
of desired goals to meet the business expectations.
Business in todays scenario is a very complex procedure. It has many undefined and unknown
variables that are subjected to change very dynamically (Meyer, Neck and Meeks 2017). With the
changing scenarios the requirements, the strategies and the action plans become obsolete very
quickly. Therefore, a lot of strategic initiatives are taken keeping the change factor in mind. But it
was not always like that, in the earlier days of business and industrial revolution, when the people
started developing work streams of their own, the market instability was not that high and risks
factors were limited. The methods being followed during that time were relatively traditional
(Trigeorgis and Reuer 2017). The following part of the essay analysis the traditional business
strategy management in comparison to the modern approaches and business models being adopted
to reduce business risk parameters.
Traditional Approaches of Strategy Management
Strategic management is one of the crucial activities that business decision makers perform. They
visit and revisit the defined approaches and practices in use for business growth. With
modernization, globalization and multi-national business growth, the demand of business with
market risks have been rapidly flowing with unknown factors (Wheelen, et al. 2017). This scenario
is very common in recent times.
During the earlier days of business, when having and doing a business was not a very common
practice, there were only limited people intending to invest and perform a completely independent
activity of business and trade. The methods of business were not very evolved and there were not
many suggestions and models to analyze and check the dynamics of market. Also, the primary of
goal of any business in those times was to maximize profit and all other factors were less
significant and had less priority (Engert, et al. 2016). As time folded, the significance of
competencies, internal and external organizational analysis and value creation started taking roots
4 | P a g e
in the business functioning. Gradually business models emerged to support and explain the
uncertainties and to act as theocratical framework to draw decision owner’s attention into relative
scenarios.
Majorly, the strategic management decision making process was a simpler and limited version. It
had factors that were relevant to business and sequential steps arranged in the order to ensure
correct decision outcome is attained. The flow of business was captures and mentioned in the
written format referred to as the business policies in current context (Barkema, et al. 2015). With
the mid 1990s, when business units tried expanding their wings the realization that performance
improvement was not only limited to business functions, but also had dependability on external
forces came into picture.
The debate of business strategic finesse came into existence and the traditional methods started
evolving, business models started surfacing and researches with innovation started framing the
foundation of more active methods of strategic movements to enhance the organizational
performance (Durand, et al. 2017). The most simplex traditional explanation is pictured as follows
–
Fig1: Traditional Decision Making - Strategy
Vision/Mi
ssion
Purpose
Market
Requirem
ent
Scanning
Internal
and
External
Analtysis
(SWOT)Staregic
Decisions
/
Directions
Goals and
Targets
Formulati
on
Implemen
tation
Evaluatio
n
in the business functioning. Gradually business models emerged to support and explain the
uncertainties and to act as theocratical framework to draw decision owner’s attention into relative
scenarios.
Majorly, the strategic management decision making process was a simpler and limited version. It
had factors that were relevant to business and sequential steps arranged in the order to ensure
correct decision outcome is attained. The flow of business was captures and mentioned in the
written format referred to as the business policies in current context (Barkema, et al. 2015). With
the mid 1990s, when business units tried expanding their wings the realization that performance
improvement was not only limited to business functions, but also had dependability on external
forces came into picture.
The debate of business strategic finesse came into existence and the traditional methods started
evolving, business models started surfacing and researches with innovation started framing the
foundation of more active methods of strategic movements to enhance the organizational
performance (Durand, et al. 2017). The most simplex traditional explanation is pictured as follows
–
Fig1: Traditional Decision Making - Strategy
Vision/Mi
ssion
Purpose
Market
Requirem
ent
Scanning
Internal
and
External
Analtysis
(SWOT)Staregic
Decisions
/
Directions
Goals and
Targets
Formulati
on
Implemen
tation
Evaluatio
n
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