Strategic Management: Perspective and Emergent Approach to Strategy Formation

BSC (Hons) BUSINESS MANAGEMENT
SEMESTER 1, EXAMINATION 2021/22
STRATEGIC MANAGEMENT
MODULE NO: BMP6002
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ANSWER BOOKLET
All the pages of the answer booklet should be submitted including blank ones.
Please type your answers in the spaces provided.
Insert additional pages where required.
Student Name Ana Nicoleta Varga
ID Number HE19277

[Section 1: Compulsory Question]
Answer to the Question no. 1
A business strategy is defined as the long-term strategic direction taken by an
organization to attain its future plans where attempt is made to get better competitive
positioning and fulfil the needs of every stakeholder by using the available resources and
considering the continuously evolving external environment. strategy formation and
strategic planning are important areas of business management because they helped the
company manage daily activities and resources in a manner which supports attainment of
larger objectives which extend beyond quarterly profits and sales revenue (Jelonek et. al.,
2022).
The area of strategic planning focuses on building specific future vision for the
company and creating attainable goals along with the sequence through which these goals
will be achieved to ensure that the future vision of the company is created for the benefit
and interest of every stakeholder associated with the company (Grant, 2021). Different
strategic approaches are applied by business organizations in order to further their
entrepreneurial success and achieve best outcome in different entrepreneurial and
endeavours. The two primary strategic approaches utilized by businesses to develop
strong corporate strategy for their firm are perspective approach to strategy and emergent
approach to strategy.
The emergent and perspective approach to strategic planning it's completely
opposite and has different advantages as well as disadvantages which need to be
considered before selecting either of the options to formulate strategy for a company. On
one hand the perspective approach to strategic planning focuses on firstly developing the
mission vision and core values of the organization so that appropriate strategic objectives
can be formulated (Quenum and et. al., 2021). After this the actual strategy planning and
implementation begin. Comparing this to emergent approach to strategic planning the
entire focus is on finding creative solutions by making suitable strategic and operational
decisions at various points leading to development of a specific pattern.
The perspective approach to strategy is one where objective is defined in progress
and the primary elements of the strategy are developed prior to its implementation. On the
opposite end is the emergent approach where the primary objective is not decided
beforehand end the main elements of the strategy are created within its course of
implementation as the strategy is continuously prepared and implemented through
decision making of managers and leaders (Shamir, 2021). Emergent approach to strategy
formation deserts in higher creativity and responsiveness during strategy permission for
surviving in the hyper competitive environment of the current age while perspective
approach to strategy helps in effective management in organization of complex areas
leading to higher degree of control.
The advantage of the perspective approach is that it supports long-term strategic
thinking and ensures that formal strategic planning takes place to make a coordinated
effort in attaining objectives and vision of the company. This advantage can be shown with
the help of UK based retail organization Tesco which has created suitable core values
vision mission and strategic objectives by following the prospective approach to strategy
formation and he's able to launch a coordinated and formal effort towards attainment of
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business objectives and organizational vision. In this way Tesco is able to achieve industry
wide success. On the other hand the advantage of emergent business strategy is that it is
more adaptive and helps exploit available opportunities. This is because it helps use
current strengths of the company to exploit the available opportunities in an effective
manner. Emergent strategy is used in changing environment because of its
responsiveness and ability to get desirable results from opportunities (Sallos and et. al.,
2019). In case of TESCO a suitable way in which the company can exploit emergent
approach to strategy is during organizational change such as digitization to get desired
outcome, exploiting opportunities and eliminating challenges.
[Section 2: Answer any TWO questions from four questions
given (2, 3, 4, & 5).]
Answer to the Question no. 2
Application of VRIO analysis to TESCO
Resource Valuable Rare Imitable Organized
Financial
Resources
Yes No No No
Distribution
network
Yes Yes No No
Technological
Resources
Yes Yes Yes No
Human
Resources
Yes Yes Yes Yes
 Valuable: The vast financial resources of Tesco are valuable to the company
because they are the lifeblood for end strategy implementation. High financial
capital gives a company competitive edge because they are able to secure better
marketing, advanced technology and attract talent easily (Jean‐Paul and et. al.,
2020). The distribution network of Tesco is valuable because it helps the company
ensure that all of its physical stores and online delivery has stocked products and
delivers them to consumer in a timely manner. Finally the technological and human
resources of the company are valuable because they help the firm find unique
solutions for various challenges and ensure that consumer satisfaction is
maximized for higher sales.
 Rare: The distribution network of Tesco is rare because it consists of thousands of
convenience stores, retail outlets, supermarkets and warehouses situated in
lucrative locations across United Kingdom. Most businesses in the retail industry do
not have access to large distribution network and have to depended on third parties
to make deliveries out of their limited regional accessibility (Rodrigue, 2020). The
technological and human resources of the company are also rare because they
consist of advanced technology and trained employees who are experienced and
skilled in providing best experience to consumers.
 Imitable: This element of VRIO looks ate if the resource can be easily replicated
(LEE, 2022). The technological resources of Tesco cannot be imitated easily
because they require high capital investment to purchase and implement as well as
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