Article on Evaluation of Strategic Management
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Leeds Beckett University
Added on 2020-04-13
Article on Evaluation of Strategic Management
Leeds Beckett University
Added on 2020-04-13
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Running head: STRATEGIC MANAGEMENTStrategic ManagementName of the Student:Name of the UniversityAuthor Note:
1STRATEGIC MANAGEMENTTable of ContentsIntroduction........................................................................................................................1Differences between the Evolutionary and Processual School of Strategy......................2Similarities between Evolutionary and Processual School of Strategy.............................5Challenges of Each School to Whittington Classical School of Strategy..........................6The point of disagreement of the strategic process..........................................................9Conclusion.......................................................................................................................10References:......................................................................................................................11
2STRATEGIC MANAGEMENTIntroductionThe article focuses on the evaluation of strategic management. The article is acritical evaluation of the main similarities, and differences between the evolutionary andprocessual approach of strategy put forward by Whittington. There is however abackground behind the existence of all strategies. Most of the companies aim at makingprofit and growing bigger following a particular strategy. As the path towards growth isdifferent for every company, so their strategies too vary. This led to the formulation ofdiverse strategies by the companies for serving their individual needs. The formulationof these strategies takes place in different ways that includes emergent, deliberate, ordeliberately emergent and viewed from a process-oriented perspective or outcomeoriented perspective. Richard Whittington thus, took a western viewpoint, enabled incollating several theories on strategy, and segregated them in four groups followingparticular approaches. In this report, the evolutionary and processsual theory ofWhittington finds a description along with a mention of the similarities and differencesbetween both the approaches mentioned. The report also discusses about the classicalapproach of strategy. There is also discussion on how convincing each of theapproaches is to the classical school of thought as described by Whittington. Differences between the Evolutionary and Processual School of StrategyEvolutionary School of StrategyThe Evolutionary Approach of Whittington depends on a belief that there isconstant change in the economic environment. Similar to the theory of Darwin thatfocuses on the survival of the fittest this theory also focus on the role played by strategy
3STRATEGIC MANAGEMENTin responding to the environment for the matter of survival and maximizing profit. Thereis however, the prevalence of unpredictability in the market for making hugeinvestments in the strategic plans but evolutionist holds a different value. They howeverbelieve high efficiency and profitability are necessary of a firm’s survival, which helps incost reduction, efficiency increment can open to options (Whittington, 2002).Competition will however determine the survival of the fittest. On the other hand,companies that do not undergo change on an immediate basis in the face ofcompetition are bound to face extinction. This gives rise to the emergence of successfulstrategies through the process of natural selection that enables an organization to fitbetter in their economic environment. However, the proponent of evolutionary schoolput forward the idea that success of an organization depends more on its environmentrather than on the managers. The differentiation argued by the evolutionist on groundsof the Porter’s theory. They mention that the key to success for a company lies inproviding something unique and valuable to the buyers at a lower price and is a key tocompany’s success without which they would not be able to survive until they prove tobe unique and is a position to outperform their competitors. In this approach, the onestrategy that would not prove to be rational for the managers would be expensiveinvestments since the new competitors would provide a push in the market with thelaunch of the new product or service that also leads to the emergence of small productsthat might prove to be more efficient. In this respect, Whittington put forward theexample of Sony that launched different versions of Walkman in 1980 s where themarket decided on the models that survived and the ones that succumbed to failure(Dopfer 2012). Thus, environment plays a vital role for deciding on a strategy which
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