Strategic Management: Prescriptive and Emergent Approaches, PESTLE and Porter's Five Force Model, and Innovation for Long-term Development

Strategic management

CONTENTS
INTRODUCTION......................................................................................................................1
SECTION– 1..............................................................................................................................1
Comparing and contrasting prescriptive and emergent approaches to strategy and outlining
their role in the delivery of this aim.......................................................................................1
SECTION – 2.............................................................................................................................4
Comparing PESTLE and Porter’s five force model for assessing the environmental impact
on the competitive position of an organisation.......................................................................4
The benefits, costs and risks of utilizing innovation for driving long-term organisation
development...........................................................................................................................5
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
Articulating in relation strategic management, it is all about determining as well as
describing the strategies which the manager can adopt for attaining enhanced level of
performance along with an edge over the other competing firms in the market. An
organization will be said to have a competitive advantage in case its profit margins are quite
more as compared to the average profit margin for all the organizations in the same industry.
Thus, it is important on the part of manager to have detailed knowledge and comprehension
of both general and competitive environment of the organization. Considering this, the main
aim of the current research report is to critically evaluate the concepts along with models
related to organizational strategy. The report will also going to throw light on the significance
of change management by answering varied questions. Further, the report is being segregated
into two sections, the first section talks about prescriptive and ‘emergent’ approaches to
strategy and will outline their role in the delivery of this aim. On the other hand, the second
section will compare two models to measure the environmental impact on the competitive
position of an organisation and analyse the advantages, costs and risks of using innovation.
SECTION– 1
Comparing and contrasting prescriptive and emergent approaches to strategy and outlining
their role in the delivery of this aim
The notion in relation with the corporate strategy always fights a battle with the
recurrent problem of identifying inclusive purpose as well as scope of the business
corporation. Speaking in terms of contemporary perspective, corporate strategy encompasses
requirements of long term objectives which will going to add some value to the company and
will help in coping up with uncertainties of current period. Further, considering it as a
practice it involves making use of course of action along with distribution of resources in
such a manner that it helps in attaining the complete goals of the firm (Shah and et.al, 2015).
Prescriptive and emergent approaches are one of the main theories of strategy development
and are extensively recognized and thus, they must be scrutinised surrounded by
progressively competitive, vibrant and international environment of business. There are many
strong external factors which are compelling companies to decrease their costs, augment
processes and determine prospects for development. Numerous business corporations are
obliged to undertake intense enhancements not just to participate and grow however to
endure in the market. All this paves the way for the significance of identifying the
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prescriptive and emergent approaches that can support in meeting out the current requirement
of the business at the time of developing a strategy.
Focusing in relation with the prescriptive strategy, it is being referred as that strategy
which has a main aim of defining the progress and its main component have been
industrialised prior commencement of the strategy. This approach consider development of
strategy as a schematised as well as deterministic procedure in which evaluation of the
companies, their level of performance along with the external environment results in the
establishment of a long term plan which is rational. The final objectives are being defined by
senior management and afterwards the plan is implemented by the consecutive layers of the
firm (Grant, 2019). On the other hand, emergent strategy is being referred as that strategy in
which the final goal is not decided and its main component are developed during the course
of its life hat is with the continuation of the strategy. According to Mintzberg, strategies are
not always planned and they can evolve incrementally with the passage of time with the
adaptation of actions of the business to altering reality. He further argued that as an
alternative to have a deliberate plan, a strategy must develop and grow with the process of
investigation, modification and learning. Articulating about the techniques which helps in
feeding the process of prescriptive approach encompasses five force model of Porter for
evaluating the industry and value chain analysis which helps in highlighting the current
abilities as a strong foundation for attaining an edge. Ansoff as pointed out that the firm in
this dynamic, competitive and fast paced environment makes use of methodical process for
strategic planning most of the time can rule the market effectively. Seeking support from
diagnostic and rational method, firms can create prognostic as well as anticipatory
approaches which in turn can help them in meeting novel prospects (Mintzberg, 1990).
Considering the example of EasyJet, in the year 1995 they have utilized unbelievable
foresight for introducing low cost airlines which has enabled them to achieve a competitive
edge in the markets of Europe. With this method, EasyJet was able to consolidate
multifaceted events and worked out a superior amount of control on varied units of business.
Similar is the example of TESCO, which has used their planning process for defining long
term goals and clearing boundaries for their core business of UK to many internationals
sectors. The company was able to succeed in attaining a steady growth along with profits in
all the areas in the current years.
Formulation of strategy places more emphasis on the strengths of present abilities and
is being considered as a protected foundation on which the companies should elaborate
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