Strategic Management Assignment - (Doc)

Added on - 21 Apr 2020

  • 13

    pages

  • 3723

    words

  • 11

    views

  • 0

    downloads

Showing pages 1 to 4 of 13 pages
Running Head: STRATEGIC MANAGEMENT1Whittington’s Approaches to StrategicPlanning
STRATEGIC MANAGEMENT2Table of ContentsIntroduction......................................................................................................................................3Evolutionary School of Strategy......................................................................................................3Processual School of Strategy.........................................................................................................4Similarities and Differences between Evolutionary and Processual Schools of Strategy...............4Classical School of Strategy............................................................................................................7Challenges to Classical School of Strategy.....................................................................................8Evolutionary Approach................................................................................................................8Processual Approach....................................................................................................................9Conclusion.......................................................................................................................................9References......................................................................................................................................11
STRATEGIC MANAGEMENT3IntroductionThere were so many authors, who have given different opinions about strategy. In the year 1993,Richard Whittington had identified four approaches of strategy formulation, i.e. classical,evolutionary, systematic and processual approach. To describe these strategic trends andconcepts, Whittington uses two variables such as; strategic processes and strategic goals. Thesetwo variables are placed on two axes, with the objectives on vertical axis and outcomes onhorizontal axis. In today’s business world, it is very important to find most appropriate school ofstrategy for the goals of organization and it offers great reward for it (Whittington, 2002). Thispaper includes the analysis about differences and similarities between evolutionary andprocessual approach. The author recommended that these approaches can be distinguished on thebasis of outcome of strategy, profit maximization and practices on both the axes to present itvisually about two significant questions, i.e. “what is strategy to?” and “how an organizationdevelops the strategy?”The critical analysis has been evaluated that processual approach of Whittington is the best ascompared to other approaches of strategic planning. Whittington has compared all theapproaches on the basis of their objective, planning and outcome of the implemented strategy.Processual approach is better than evolutionary approach because it emphasizes on pluralobjectives than profit maximization and it recognizes different possible results than only profitand revenues. The comparison of both the approaches is done by considering the possibleoutcomes of the approaches to strategy making. It is best suitable for the current businessenvironment as it considers different functions and areas in an organization.Furthermore, it includes the challenges of differences and similarities of evolutionary andprocessual approaches to the thoughts about classical school of strategy. Evolutionary andprocessual approaches are challenging for the classical approach because these both approachesare emergent and classical is deliberate. These practices challenge the thoughts and objectives ofthe classical approach, given by Whittington. About these approaches, it can be said thatapproach of organization to strategy-formulation process has different implications for knowingabout and implementation of Strategic Human Resource Management (SHRM).
STRATEGIC MANAGEMENT4Evolutionary School of StrategyAccording to Richard Whittington, evolutionary approach of strategy is utilized to formulate thestrategies with the objective of survival. This is affected by biology and economics and strategyis formulated based on external factors, majorly market. Under this approach of strategy, short-term strategies are developed for surviving in the industry and not to sustain the business in longrun. The components of this approach believe that success of a company depends on itsenvironment than on its management (Barney, 2014). This perspective of strategy was developedduring the market led 80s that was only about the survival of the company and its business. Itshifts the emphasis from business and outcomes to creating a different when attemptingorganizational success. This approach of strategic planning recommends that markets are verymuch competitive for costly strategizing and volatile to outguess. The people, who areevolutionists, believe that refined strategies can offer only temporary benefits and some of themrecommend emphasizing on transaction cost management and efficiency.Processual School of StrategyOne of Whittington’s generic approaches is processual school of strategy. Under this approach,the strategies are developed with the unclear goals. This classification is affected by thepsychology and formulation of strategy is done based on internal aspects, primarily perceptionand politics (Barbuto, 2016). The strategies, which come under this category, are very risky andthe companies implementing these strategies are risk oriented. This type of approach denies toboth the strategic method and profit increment objective. For attaining the goals of company, theprocessual theoreticians describe the strategy of organization as the sum of thoughts, opinionsand efforts of individuals. This is one of the significant approaches for strategy formulation.Under this approach, organization establishes the objective for enhancing the quality andincreasing the market share of company (Cole, 2013).Similarities and Differences between Evolutionary and ProcessualSchools of StrategyHowever, all the approaches of strategic planning are created on the basis of differentphenomenon, but they share some similarities in terms of profit maximization, outcome ofstrategy etc. From the analysis, it can be stated that to survive in the processual and evolutionary
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document