Strategic Management: Prescriptive and Emergent Approaches, SWOT Analysis, and Innovation

This report discusses the prescriptive and emergent approaches to strategic management, compares and contrasts them, and provides examples from companies like General Electric and Tesco. It also examines the limitations of SWOT analysis and the benefits, costs, and risks of using innovation in business. The report emphasizes the importance of carefully using SWOT analysis and critically thinking about innovation in business operations.

Strategic Management
TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Section 1..........................................................................................................................................2
Compare and contrast the application of ‘prescriptive’ and ‘emergent’ approaches to
strategy and outline their role in the delivery of this aim with example...................................2
SECTION 2.....................................................................................................................................7
Issue and limitation with SWOT analysis:..................................................................................7
Evaluating benefit, cost and risk of using innovation:................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic management is all above refers to defined as its process for new planning, new
idea generation, managing and many more aspects for business object or goal successfully
achievement. Expansion of appropriate and sustainable strategic management makes more
profound results with effective manner and it reduces risks within business as well (Ivars-Baidal
and et.al., 2019). This study will clarify all the essential aspects which require for strategic
management development. Identification of different factors which require for the loaning and
decision-making will define in this report, so it makes more clarity with models application,
comparison between two variables it’s easier to develop strategic management in organization
for effective project completion and includes with example. This study will provide information
of how two strategic approach models resolve conflicts and develop long term growth
opportunities and goal achievement. This study will provide information that how cost, risk, and
financial aspects manage by innovation expansion in business activities and define the role of
core competence in expansion of the sustainable competitive advantages within business
activities. This study has been defined why application of strategic approach model useful for
business long term goal achievement.
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MAIN BODY
Section 1
Compare and contrast the application of ‘prescriptive’ and ‘emergent’ approaches to strategy
and outline their role in the delivery of this aim with example.
Expansion of strategic management approaches improves business quality with application and
evaluation of unexpended events identification. Its essentials that individual business senior
authority considers to apply strategic approach model for reduce business conflicts and manage
multiple tasks with effective manner. Having appropriate and sustainable business methods or
approach has power to develop higher constancy in business activities. Multiple organization
management when they not prefer to develop strategic approaches then it baldy impacts
successfully goal achievement (Mahdi, Nassar and Almsafir, 2019). Strategic plan mainly
prepares for new addition into existing planning and ongoing business process and its mainly
apply for managing task with more effective patter because its important term that when seniors
and develop new plan to discussion with employees which has great sense and idea to manage
business tasks which is beneficial for task completion. Different strategic methods and approach
of organization are as follows,
Prescriptive approach to strategy: This strategy define as identification of different variables
at multiple levels which means business object set firstly and develop continuity in business
process and in mid way process of project seniors or manger when looking business aim strategic
process then they develop variation on the basis or requirement and prepare new decision as
well. Development of prediction which means when this project has be done, why, what etc this
term is known as prediction strategy. Completion of this step next is to manager or seniors
authority evaluate that this decision has power to provide aim or new opportunity with successful
manner or not. And the last step is to how this decision makes better things. One of the most
appropriate expansions which apply and consider by companies include General Electric. This
company mainly provide services electronic, financial services and many more. Aim of this
company is to provide better and effective electronic services with new applications involvement
(Rajapathirana and Hui, 2018). So this type of company senior’s authority highly prefers to
develop appropriate, effective and sustainable application including with prediction basis.
Utilization and application of this strategic process makes more profound result but it takes very
long time because in between seniors develop new variation in specific plan which affects on
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employee mind-set they do have to done new things multiple time. But the major effective things
is its easier and control risk with proper knowledge development of essential requirement. This
method mainly consider by companies which highly depends on environmental changes as well.
Figure 1: Prescriptive strategic model
So its clear prescriptive approach mainly refers to define are where company object stand
and then company senior authorities develop new variation for future. Idea of this term makes
more celerity that company develop proper plan but in between process they develop changes
which can be more beneficial or effective in future. Its very useful strategic approach but it
requires employees working power evaluation as well which means they do have power and
capability to adopt new variation within in project plan or not.
Emergent approach to strategy: This model of strategic management mainly defines as
business strategies change over the time on the basis of unexpected change identification. An
example of this model is market flow like variation in demand and supply. Idea and knowledge
of this term its essential aspect that business and develop higher consideration and attraction
towards with the appropriate and sustainable decision-making with continues identification of
market flow or identification of business risks (Govindan, Mina and Alavi, 2020)
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. Idea and knowledge of risks or external forces which affects business activities its important
term to develop new decisions for survives and good position dvelopmeenet in competitive
market.
Figure 2: Emergent strategic model
Most emergent approach of strategic management adopt by manufacturing industries
because they do have duty to develop change on the basis or customer demand, control ion
production when demand is low, unexpected events and many more. Perfect and effective ideas
involvement with proper planning is not essential because in multiple case project manager has
duty to take new action within second so its important term that employee consider situation of
business object and try to complete them. It also includes that when senior authority or market
department experts not identified future unexpected risk this business activity get badly affected
from it so its major important term that business always believes and prefer to develop higher
attraction for managing goods and services with effective manner. And one major thing decision-
maker has duty to explain to employees that they do have to prepare for managing work force
with sustainable pattern.
Prescriptive strategic model Emergent strategic Compare and contrast between
two model
Prescriptive strategic
management mainly define as
And next is Emergent strategic
approach where business
Both the strategic
management model mainly
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where company develop and
set proper plan but senior
authority evaluate plan and
before implementation of plan
they analyse that this aspects
may be they do have to add on
into existing plan in
unexpected circumstance or
which is useful or beneficial
for future as well.
management develop changes
on the basis of requirement
identification (Cunningham
and et.al., 2018). Having
Emergent strategic approach
model within business prices
influence higher profit and
resolve business risk with
effective manner.
concern towards with the
business goal achievement in
any case or in any situation.
And both the strategic model
pursued by seniors and
authorities for essential needs
involvement and new planning
which provide benefits in
business sustainability.
This model clearly provide
information that strategic
management is mainly
develop effective results when
company management
authority evaluate future study
of business which means that
it can be happen into future.
Example of this model who
consider this strategic
management are TESCO,
Mark and Spencer and many
more other manufacturing
companies develop variation
in their services on the basis of
market requirement.
Emergent and prescriptive
strategic management model
makes clarity but both has
major different is strategy of
new strategic management
implementation is different
way.
Example of Prudential
industry, General Electric and
many more where companies
management team develop
prescriptive strategic model
for new changes expansion on
the basis of requirement
(Newman and et.al., 2019).
In this term employee also
provide information to seniors
that they do have to consider
new change on the basis of
requirement.
It been clear that both the
strategic model has potential
to resolve and manage
business performance with
powerful manner because they
both consider for future risk
which is beneficial term.
From the comparison and construct between two aspects it’s been evaluated that having
appropriate strategic approach or model can be resolve multiple issue and manage business
object completion with identification of various aspects. Its essential that business management
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when decide to develop business, they do have duty to evaluate right strategic approach which
has power to resolve conflicts or market demand satisfaction with work flow effectiveness and
addition of new strategy or plan for management of multiple aspects with consideration of
employees skills, behaviour and discussion with every employees who engage for company
object identification (Searchinger and et.al., 2018).
SECTION 2
Issue and limitation with SWOT analysis:
SWOT analysis is one of the most successful tool or model to analyse strength and
weakness of the company, almost every business organization use this analysis tool to get clear
understanding about their company’s process and to mainly develop strategy for enhancing
business growth (GURL, 2017). It is very clear that every business organization have to analyse
their uniqueness, with this uniqueness they can develop those powerful strategies which can
achieve organizational goal. Strength of every company lies in the way they treat their customer
with product and service, which means company only can be successful if they have ability to
analyse strength, weakness and ability to catch opportunity which can later be converted into
strategy to achieve organizational goals.
There are certain benefits of using SWOT analysis, such as company get clear idea about
their strength and weakness, apart from this business can also look for various opportunities
which revolve around business. Another benefit of SWOT lies in identifying threats that can
impact smooth process of the company, but it is very clear that there are some issue and
limitation of using SWOT analyse, these are:
No solution: SWOT can be beneficial in identifying certain threat, but this tool or model can not
provide effective solution for the same which means decision making process of company may
be affected due to applying SWOT analysis. It is very clear that every company only perform
analysis to understand their company’s position which means they not only look for factors that
might affect but they also look for solution can that reduce risk of impact from these factors
(Sarsby, 2016). Almost every company develop strategy after analysing this tool but if this tool
or model does not provide any solution then this cannot be beneficial, company should not
directly depend upon benefits or effectiveness of SWOT, they should look for various other
tools, model and theories which can develop effective solution.
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Issue in idea generation: there are many issue related to SWOT analysis but one major issue is
lack of idea generation or too many idea can lead to confusion and often result in failure in
developing effective strategy. SWOT analysis is beneficial in identifying both, internal and
external factors which means company get advantage of using this tool but because of too many
idea company fall into confusion in picking up best idea. Sometimes using SWOT analysis not
even provide any solution which become useless to use this analysis. There are many cases
where company failed to survive just because of using SWOT analysis because this tool only
provide focus on strength carried by company and do not focus on those factors which can easily
bring down strength of company, directly depending on SWOT analysis leads to failure.
Poor strategic management: it become very challenging for company to even survive because
of poor strategic management which means company have not meet the requirement of strategic
success, it is very clear that strategies are only being developed after analysing strength. Almost
every company use SWOT analysis before developing any of strategy, apart from benefit,
limitation of SWOT lead company to become more weak in developing strategies or managing
running strategy of company (Teoli, Sanvictores and An, 2019). There are many cases where
company bring some modification in already established strategy which means after analysing
strength and weakness, the company brought changes which lead to failure. Sometimes business
need to avoid using SWOT analysis because this can impact strategic management of the
company.
Conclusion to use SWOT analysis:
SWOT analysis can be very beneficial but directly depending on this tool can lead to
failure in the business process, those companies who use this tool before developing every
business can fall under great danger or risk. It is recommended for company to use SWOT
analysis at the starting of developing strategy because when company have clear understanding
of their strength and weakness then they can develop more effective strategy.
Although SWOT analysis is very beneficial in terms of understanding company’s position,
this tool is very powerful if company know right way to use. Every multinational company
analyse uniqueness selling point which means they use SWOT analysis just to get understand
their USP, some company perform this analyse at every business level which means they
perform SWOT analysis for their product and service as well. It is recommended for company to
use SWOT analysis carefully in strategic management of the business organization.
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Evaluating benefit, cost and risk of using innovation:
Innovation play vital role in every business organization, without innovation an company
can not process further and can not survive in highly competitive market, it is very clear that
almost every multinational company is successful because they have innovative product or
service (Bishop, 2016). Adopting innovation can unlock various doors of success for the
company which means an business need to critically think innovation in their business process
and operation and should analyse importance of innovation. There are certain benefit and risk of
innovation in the business organization, these are:
Improved productivity: innovation is fuel of business growth, every company want this fuel to
stay in highly competitive market and keep their speed of success high, innovation directly
impact performance of business and employee, this improve productivity and allow company to
reduce cost (Irani, 2019). The process of adopting innovation in business operation can be
challenging which means there is high risk of failure which will impact productivity of company
as well as employee. Innovation brings flexibility in workplace which means, this can cut of
extra cost and affords of employee, this process can be very beneficial for company if they make
good use of innovation.
Better quality: innovation push company to improve their quality, it is very clear that quality
play vital role in success of an organization. When company have ability to undertake innovation
at every business level then they can improve quality of product as well as quality of delivering
and addressing customer. There are many multinational companies who better their quality with
innovation, for example; Apple always focus on delivering high quality product and service
which means they bring innovation at every product and service they offer. Innovation simply
means creating sometime new which can improve quality and attract customer, better quality
means product is meeting customer need.
Wide range of product and service: Many business organizations develop those products
which have ability to attract customer even from different industry, these type of company focus
on pulling customer with completely innovative product and service. It is very clear that when
company bring innovation which means either they are bringing some innovative modification in
existing product or service or they have completely planning to develop completely innovative
product. There are many multinational companies who have wide range of product just because
they keep brining innovation at every level of business and product and service line of the
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company. For example; renewable company have wide range of product, every product is
innovative which meets the demand of the customer.
Cost and risk of innovation:
Costly: innovation is costly process, this means company need to have high budget with proper
effective plan and strategy, it is very clear that every business organization can not adopt
innovation which there are some or area business who have ability to introduce innovation or
innovative product just because they have surplus profit generate with success of other products.
For example; Tesla have surplus profit and budget which means this company can bring
innovation at every product they develop, although, this company have already developed
innovative cars and changed automobile industry. Tesla have budget that is why they have ability
to bring innovation in their product and service.
Competition: high risk is associated with movement and activity of competitor which means if
they are planning to introduce innovation then it is very riskier for the company to compete their
competitors, sometime innovation process fail just because of involvement of competition. There
are many cases where small business enterprise have given tough competition to large scale
business organization who tend to rule over the industry. Power of innovation can be seen in the
case of Tesla, this company manufacture highly reliable electric cars which means all other car
manufacture know have to copy or need to bring innovation by their own to face competition
from Tesla.
Unexpected return: the process of innovation is risky game, every business organization need
to be careful while brining or adopting innovation because sometimes even innovation bring
expected result which can be negative or positive. In both terms, negative and positive outcome
of innovation, company need to be ready with highly effective contingency plan to survive
negative impact or failure of innovation (Von Hippel, 2016). Some innovation lead company to
bear huge losses because customer are ready to understand benefit of innovation, many
multinational company try to avoid futuristic innovation strategy because there might be high
risk of failure. Risk is associated with every level of innovation which means company can only
be successful if they have ability to face unexpected return of innovation in the business
organization.
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CONCLUSION
It has been summarized from the above reflective study that strategic management mainly
refers to develop new process or plan within continuity and existing plan. This report has been
developed appropriate and effective knowledge of two different strategic model comparison that
business influence from multiple aspects so it’s been essential to develop observation on market
activities for new change development on the basis of requirement identification. It has been
defined that role of core competence in developing the sustainable competitive advantages which
is beneficial for make effective sense that can be provide higher effective results with effective
manner. This study has been clarified that having appropriate and sustainable innovation
application useful for cost, risk, and financial aspects management and it raises profit as well.
This report has been properly provided multiple information which relates to strategic
management in business with examples which is beneficial for other organization which consider
to develop strategic management within business practices for goal achievement.
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REFERENCES
Books and journals
Bishop, R.H., 2016, March. What is Innovation?. In 2016 EDI.
Cunningham, C. R., and et.al., 2018. Invited review article: Strategies and processes for high
quality wire arc additive manufacturing. Additive Manufacturing. 22. pp.672-686.
Govindan, K., Mina, H. and Alavi, B., 2020. A decision support system for demand management
in healthcare supply chains considering the epidemic outbreaks: A case study of
coronavirus disease 2019 (COVID-19). Transportation Research Part E: Logistics and
Transportation Review. 138. p.101967.
GURL, E., 2017. SWOT analysis: A theoretical review.
Irani, L., 2019. Chasing Innovation. Princeton University Press.
Ivars-Baidal, J. A., and et.al., 2019. Smart destinations and the evolution of ICTs: a new scenario
for destination management?. Current Issues in Tourism. 22(13). pp.1581-1600.
Mahdi, O. R., Nassar, I. A. and Almsafir, M. K., 2019. Knowledge management processes and
sustainable competitive advantage: An empirical examination in private
universities. Journal of Business Research. 94. pp.320-334.
Newman, A., and et.al., 2019. Entrepreneurial self-efficacy: A systematic review of the literature
on its theoretical foundations, measurement, antecedents, and outcomes, and an agenda for
future research. Journal of Vocational Behavior. 110. pp.403-419.
Rajapathirana, R. J. and Hui, Y., 2018. Relationship between innovation capability, innovation
type, and firm performance. Journal of Innovation & Knowledge. 3(1). pp.44-55.
Sarsby, A., 2016. SWOT analysis. Lulu. com. Kahn, K.B., 2018. Understanding
innovation. Business Horizons, 61(3), pp.453-460.
Searchinger, T. D., and et.al., 2018. Assessing the efficiency of changes in land use for
mitigating climate change. Nature. 564(7735). pp.249-253.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Von Hippel, E., 2016. Free innovation (p. 240). The MIT Press.
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