Strategic Management: Prescriptive vs Emergent Approach, SWOT Analysis and Business Environment Skimming

This article discusses the practical application of ‘prescriptive’ and ‘emergent’ conceptualisation in strategic management, evaluation of the benefits and limitations of SWOT analysis, and models that can be used for skimming the business environment. It also provides recommendations for drafting SWOT analysis.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Comparing the practical application of ‘prescriptive’ and ‘emergent’ conceptualisation..........3
Evaluation of the benefits and the limitations of SWOT analysis..............................................6
Models that can be used for the skimming of the business environment....................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The conception of strategic management will be extensively discussed in this study which
adverts to that facet of the managerial functioning that deals with the process of preparation of a
suitable strategy that can be used by an organisation in order to determine the objectives,
examine the combative environment and analysing the intrinsic arrangements as well. It focusses
on the effective deployment of the workforce along with the proper allocation of the resources in
then management (Certo and et. al., 2022). This article will thereby provide useful insights of the
comprehensive plan chosen by the company for attaining the substantial yet optimum profits in
the long run. It further will help in determining the most important strategical tools that can be
used by an administration to effectively carry forward the functioning of the company.
MAIN BODY
Comparing the practical application of ‘prescriptive’ and ‘emergent’ conceptualisation.
The complexity as well as the uncertainty is very well present in the process of
developing and implementing an organisational strategy in an enterprise. This involves the
thorough utilisation of a well-versed strategic planning that helps in distinguishing the internal as
well as the external factors which can affect the business environment in an unfavourable manner
(Fang and et. al., 2022). The approaches that can be used for the similar purpose are mentioned
down below:
PRESCRIPTIVE APPROACH
The objectives, values and the determined vision of a company are defined prior to the process of
strategy implementation. The priorities and the purposes of an organisation are based on the
logical orientations put forward by the top management. The hierarchy structure which is
followed while making use of this conceptualisation is a top to bottom management style. The
approach is linear in terms of the reasoning. The planning is thus orderly and consistently
designed to ensure the steadiness of a business (Glaveli and et. al., 2022). The pros along with
the cons of the prescriptive form of strategic planning can be elucidated in the following manner-
Advantages: Prolonged strategical thought process – The impact of the organisation's
strategies on the basis of the decisions, actions and inactions are determined for a longer period
of time. Thus, the targets are set with respect to an ideology of retaining in the market for a
sustainable period of time. The goals when set for short terms, tends to deviate which can

influence the economic progress of a firm. Coordinative endeavours – The elements involved
in the formulation of a comprehensive plan clearly states the major goals and objective of a
business which helps in easing the coordination and the cooperative efforts of the personnel
involved in the team (Elena, B.A.R.A.N.O.V., 2022). The direction is specifically mentioned in
the plan which helps in an effective communication that takes place in the departments.
Suitability of an organisation – The approach thus helps in the placement of a formal
association that can help in attaining a feasible orientation in the market. The systematic analysis
carried forward through the utilisation of the prescriptive approach can thus help in placing an
influential position in the business environment.
Disadvantages: Suppression of the creativity – These disciplinary focuses on the top-bottom
management style which results in an inflexible working environment. The employees have to
work according to the strict measures which are adopted by the organisation and this curbs the
imagination and creativity levels of the employees (Williams and et. al., 2022). Dysfunctionality
of the synthesis – An organisation can be profoundly plunged in the analysis of the macro-
economic variables which can result in the negligence of the upcoming opportunities in the
market. Limited rationality – The expectation of thinking rationally is not possible all the time.
Certain decisions have to be taken in an abrupt manner according to the prevalent scene that is
dominating in the environment which can differs in respect to the presumed theorisation of the
prescriptive approach. This affects the systematic planning made by the organisation prior to the
implementation.
EMERGENT APPROACH
The formulation of the strategies by the managers are done according to the certainties going on
in the business class. This implies that the emergence of a plan will be in respect to the needs and
wants of the customers in the market by the individual companies. The structure of flow will
thereby be from bottom to top in the management in respect to the actions that are taken,
interpretations of the events and the complexity in the interactions in the subordinate level. This
particular form can thus be referred to as an incremental and an interactive process which allows
the presence of a flexible functioning system in an organisation (Khan and et. al., 2022). The
constitution of the plans are for a shorter period of time which allows the workforce to adapt to
the dynamical state of affairs. The respective pros and cons related to this form can be further
discussed-

Advantages: Little opposition to change – Substantial time is given to the individuals to adapt
and adjust to the changes that has occurred in the market. The implementation as well as the
formulation of the strategies takes place simultaneously (Fernandes and et. al., 2022). The scope
of higher resistance can be perceived when and if, the extremist modifications are accurately
enforced. Optimum utilisation of the opportunities – The attribute made available by this
approach is of the ability to readjust to the manoeuvrers that can help the associations to respond
easily to the mechanics of the business environment. This gives a considerable opportunity to
exploit the available possibilities to the fullest. Motivation of the personnel – The emergence of
the ideas can come from the lower levels of the management that can make the employees feel
duly involved in the decision-making process. Their contribution towards the organisation
becomes impeccable.
Disadvantages: Jeopardy of strategical drift – The development of the strategies is in an
incremental manner which can influence the culture of the business environment resulting in the
scope of risk. The adoption of such a plan can result in the failure of the prevailing concerns of
an organisation. Existence of short-termism – The ignorance towards the longevity of a
business plan can be experienced in a firm. The managers can focus on their respective attention
towards the annual earnings in terms of the growth and not upon the wider scope of the long-term
sustainability of the organisation in the market (Moradzadeh, Hosein Bor and Salarzehi, 2022).
Impracticability of the approach – The unclarity of the directions provided by the executives
can result in the failure of the functioning of the company. The unlimited authorities given to the
subordinates can result in the anti-control scenarios in the organisation. This will make it difficult
to justify the enforced actions and decisions by the association which will affect the monitoring
of the designed performances (Forouharfar, 2022).

Evaluation of the benefits and the limitations of SWOT analysis.
The utilisation of the SWOT analysis by an organisation is done to enumerate the varied
dimensions of the business environment such the strengths, weaknesses, opportunist and the
threats that can affect the functioning of an enterprise. This thus helps in determining the most
suitable strategy that must be taken into account for the effective business of an organisation. It
can provide an aid in respect to the identification of the ways through which the market
positioning on the firm can alter in a positive manner (Quansah, Hartz and Salipante, 2022). The
application of this analysis can help in the improvisation of the company's performance along
with reducing the risks associated with it.
Illustration 1: SWOT analysis

The benefits along with the limitations associated with the application of SWOT in order to
reasonably anticipate the determined goals must be done prior to the utilisation of the approach.
This will help in effectively designing the plan in accordance to the justified subjects (Kumar and
Gupta, 2022),
BENEFITS:
This specific examination of the different aspects present in the business environment can help in
the determination of the company's functional strategies with a greater involvement of the
subjective elements. It can be used as a guide but should not be considered as the ultimate
prescription (Šilhánková and Maštálka, 2022). The characteristics of a successful business are to
effectively evaluate the varied dimensions operating in the market to protect the sphere of its
managerial functionalities. This thus helps in keeping a check over the nature of the commercial
enterprise and assists in recognising the available opportunities in order to exploit them in an
effectual manner. It thus benefits in the following manner: Vital source of information for the
strategic planning of the businesses, strengthening the organisational functional competencies,
reversal of the weaknesses and maximization of the response towards the available opportunities.
It thereby helps in overcoming the threats associated with the organisation. It also provides an aid
in the identification of the core competencies of a firm. Determination of the attainable
objectives and the exploration of the past, present and future expectations through effectively
utilizing the data is also amongst the important benfits (Thaher and Jaaron, 2022).
Illustration 2: Framework

LIMITATIONS:
The presence of certain restrictions is always there while considering the appropriate tools for the
analysis. SWOT is not a special case either (Oham and Okeke, 2022). The recognition of the
circumstances at a particular point of time might seem too be oblivious by the executives while
formulating the plan but it adversely affects the positioning of the firm if not taken into account.
This can result in overlooking the significant key areas that are in desperate need to be provided
with a suitable solution. The segmentation of the variables can cause great degree of uncertainty
in the marketplace. The relative significance of the aspects is further carried through the analysis
but their respective origination is not determined. The restraints present in the business
environment sometimes seems to be out of the control for the management and they can thus be
bifurcated in terms of the internal and the external origin.
INTERNAL RESTRICTIONS EXTERNAL RESTRICTIONS
 Inadequacy in the investigation and
evolution of the factors.
 Fault in the products due to the poor
check over their quality.
 Shortage of the proficiency and the
efficiency labour
 Increase in the prices in the market.
 Unavailability of the resources.
 Government legislation.
 Changes in the economic policies.
 Import regulations.
 Increase in the unavoidable rivalry
present in the industry.
Commendations while drafting the SWOT:
Do not ignore the blocks and spots present in the industry. Complete business scanning must be
done before entering into the business world. And the determination of the actual strengths and
weaknesses must be articulated and no form of carelessness while doing so must happen.
Models that can be used for the skimming of the business environment.
The utilisation of the most appropriate tools and techniques for the conduction of an
accurate business analysis is indeed an imperative step to be taken by an establishment (Ramaru,
Garg and Chakraborty, 2022). This can help in the strategic analysis of the business environment

in order to formulate a reliable system to cumbersome the contingencies, if arises. The most
significant amongst the available options are:
PESTLE analysis
This concept is vividly used by the business enterprises to keep a track over the influences that
are present in the market. These macro-economic factors can adversely affect the functioning of
the trade (Shirdel and et. al., 2022). It furthermore can be referred to as a comprehensive version
of the SWOT analysis. This supports an organisation in defining the prospect of the measures
that has to be taken to formulate a viable strategic administration. The possible outcomes in
respect of the analysis can be measures in terms of: The political situation of a country and the
effects it has upon the functioning of the business. The prevalent economic factors in the market
place is of chief concern. The influence of the social aspects over the management and the
technological advancements taking place should also be considered. The regulations laid down
by the governing bodies as well as the environmental concerns are of great significance as well.
The factors that are taken into in account for the investigation are:
1. POLITICAL – The wide-ranging facets i.e., the policies, guidelines, trade limitations
and the stability in the governing bodies are included in this segment. These constituents
can disturb the business positioning of the firm in the marketplace.
2. ECONOMIC – This includes the various determinants that influences the functioning of
an organisation such as the economic growth/decline in a particular period of time,
variations in the interests and wage rates, level of unemployment and the prevailing
inflation in the market (Rashidi-Sabet, Madhavaran and Parvatiyar, 2022).
3. SOCIAL – The social customs and expectations, population growth rates, varied aspects
related to the condition of the health in the society and the levels of safety prevailing in
the country.
4. TECHNOLOGICAL – The progressions in the technological features such as the
development in the concepts of the Artificial Intelligence, machine learning and other
deep learnings.
5. LEGAL – The changes in the legislations impacting the status of the quotas, resources,
taxation and the imports/exports are exclusively determined through the investigation.

6. ENVIRONMENTAL – The laws implemented by the governing bodies in respect to the
environmental protection laws, waste management laws and the CSR completion by the
companies (Tsilionis and Wautelet, 2022).
The scrutiny can thus be exploited to help the companies in the following manner:
 Tactical business scheduling.
 Factory arrangements.
 Promotional planning
 Product expansion
 Changes in the associations.
Figure 1 Uses of PESTLE analysis
Benefits and the drawbacks of the analysis:
BENEFITS DRAWBACKS
 Comparatively easy to understand
and implement.
 Facilitation of a better understanding
of the business environment.
 Development of the strategical
 Oversimplifications of the data through
gathering insufficient figures for the
research.
 Undertaking too much data affects the
analysis in an extensive manner too.

thinking.
 Enabling the organisations to
anticipate the future business threats
and allowing it to nullify the impact,
if any.
 Spotting and identification of the
opportunities present in the market
and help in making efficient use of
them
 The conventions can be imperfectly
built by the organisations.
 Irregular practice in respect to a
conduction of the investigation
(Reisinger and Lehner, 2022).
 The hop of change can make it slight
difficult in the expectation of the
developments which can, in number of
ways affect the functioning of the
enterprise.
Porter’s five forces model:
It helps in the identification of the major competitive forces to determine the company’s
weaknesses and strengths in an exclusive manner. This scrutiny is frequently utilised by the
industrial sectors to determine the effectual corporate strategy. The application can be applied in
any division of the economy in order to understand the level of competition pertaining in the
market (Zhang, 2022). The 5 forces that are lengthily discussed are:
Competition in the market – The ability of the rivalry firm to affect the market positioning of
the company is determined through the study made under this section. The larger the number of
competitors present in the market, the larger the risk associated in respect to loosen the market
share by the company. Thus, the power of the enterprise is significantly affected because of this
characteristic.
Potential of new entrants into the industry – The entry of the newly established firms can also
affect the functioning of the industry in major manner. The company’s position can be adversely
get affected due to this.
Power of suppliers – The cost of the inputs is exclusively dependent upon the demand made by
the suppliers. The rarity of the products can cause an increase in the costs that has to be incurred
to procure them (Roozitalab, 2022).

Power of the customers – The negotiating ability of the customers can also affect the production
channel of an organisation. The loyalty of the purchasers is also an important factor that has to be
considered while formulating a plan.
Threat of the substitutes – The availability of the alternative can also prove to be a threat for
the company to operate profitably in the market. Thus certain considerations regarding the
product competition must be kept in mind by the firms operating in the market.
Benefits and the drawbacks of the analysis:
BENEFITS DRAWBACKS
 Aids in the evaluation and estimation
of the competition in the industry.
 The strengths and threats associated
with the organisation can be
elucidated.
 Identification of the power enhancing
techniques along with the lags it
showcases in the processes.
 The opportunities can also be
enumerated for the expansion of the
business.
 The valuable insights in respect to the
corporate risks that are involved.
 The formulation of an effective
strategy and a powerful vision can
also be resolute (Schiuma, Gavrilova
and Carlucci, 2022).
 The segmentation of the processes is
limited.
 The availability of the quantifiable
proportions is not in a sufficient
amount.
 The impracticality of the execution of
this approach in the larger companies.
 It can only be use as a starting point for
the investigation.
 The applicability of the approach is not
universally malleable.
 The jeopardy that can be experienced in
terms of the business is not duly
considered.

CONCLUSION
The interpretation that be made from the above-mentioned declarations explains the usage
of the business strategic models for the enhancement of the market positioning of the
corresponding firms. The strategical approach that has to be considered before making a
supposition for the study has to be perfectly designed. It thereby facilitates an all-embracing help
in the analysis of the SWOT in an extensive manner along with the drawbacks it holds while
conducting the scrutiny. The two most imperative tools that can be further be used i.e., the
PESTLE and the Porter’s five forces are also duly considered with respect to their significant
contribution in the scanning of the economic factors which impacts the organisation’s
approachability. Their pros as well the cons are also discussed, in order to provide a proper
picture of the applications. Therefore, it can be concluded that with the utilisation of the suitable
tactics, a business can do wonders but any negligence in terms to the consideration of the
negative aspects it holds, can disrupt the functioning of the enterprise.

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