An Analysis of Deliberate and Emergent Strategies in Business

This essay delves into the contrasting concepts of deliberate and emergent strategies in business, defining each and exploring their application through case studies. Deliberate strategy is presented as a planned approach with a structured process, while emergent strategy is characterized as an unplanned response to unforeseen events. The essay uses Honda's entry into the US market, Virgin's diversified ventures, Google's return to China, and Coca-Cola's acquisition of Costa as examples to illustrate how companies employ these strategies. Honda's approach is shown as a combination of both strategies, while Virgin's success is attributed to its emergent strategy. Google's strategy for China reflects a deliberate approach, and Coca-Cola's purchase of Costa highlights the opportunistic nature of emergent strategy. The essay concludes by emphasizing the advantages and potential of both strategies, and how using both strategies, as demonstrated by Honda, can be beneficial.

Strategy
Strategy can be defined as ‘the long-term direction of an organisation’ (Johnson.G, 2017). In this essay we will
look further at the stances of the theorists regarding deliberate and emergent strategies.
Defining strategy on a universal level is proven to be challenging. This is due to multiple leading strategists
having definitions that may differ from one to another. Michael Porter defines strategy as deliberately
choosing a different set of activities to deliver a unique mix of value (Porter.M. E, 1996). Whereas, Henry
Mintzberg defines strategy as a pattern in a stream of decisions (Mintzberg.H, 2007). Mintzberg uses the word
‘pattern’ while defining strategy, claiming that strategies do not always follow a purposely selected plan, this is
known as emergent strategy. Which is a contradiction to Porters definition.
An emergent strategy is an unplanned strategy that is a counter to an unanticipated event or opportunity. An
Emergent strategy comes about through everyday routines, activities and processes in organisations that could
lead to decisions that have an impact on the direction of an organisation (Johnson.G, 2002). An emergent
strategy is a pattern of action that progresses over a period of time in an organisation in the absence of a
detailed plan (Mintzberg.H, 1994).
A deliberate strategy is a strategy that an organisation hopes to implement. Deliberate strategies are usually a
detailed description within an organisation’s strategic plan, which usually consists of a 6-step process
involving; Environmental Analysis, Goal Setting, Strategy Formulation, Strategy Implementation,
Evaluation/Control and Feedback (Johnson.G, 2002). A plan is a deliberate course of action, specifying what
direction an organisation is recommended to take. A plan details what course of action should be taken in
order to meet the organisations objectives.
Honda
The entry of Honda motorcycles into the American market was a combination of both deliberate and emergent
strategies. It is clear from the first perspective that Honda's entry strategy in the US was more deliberate,
because they analysed the market share of its competitors beforehand and principally differentiated
themselves from the others. Japanese manufacturers had a rudimentary philosophy that ‘high volumes per
model provide the potential for high productivity’ resulting of usage of capital-intensive techniques which
makes it a deliberate strategy practice. Pascals second version of events that was based on interviews with the
Japanese executives who launched the motorcycles in the USA. ‘’In truth, we had no strategy other than the
idea of seeing if we could sell something in the United States.” (Mintzberg.H. R.T. Pascale, 1996). This is a good
example of opportunism as the future was unknown and therefore unpredictable, the ability used by Mr
Honda is known as ‘playing the field’ (Stacey, 2001). There was no strategic plan or objectives set for the
introduction of Honda motorcycles into the USA “We did not discuss profits or deadlines for breakeven.”

Therefore, categorising the strategy used as emergent (Mintzberg.H. R.T. Pascale, 1996). However, Honda
established motorcycles into the USA, they used a different approach by involving both emergent and
deliberate strategies. Honda executed this by carrying over emergent strategies that is common within
Japanese manufactures. “High volumes per model provide the potential for high productivity as a result of
using capital intensive and highly automated techniques” (R.T. Pascale, 1984). Their market strategies are
therefore directed towards developing these high model volumes, hence the careful attention that we have
observed them giving to growth and market share” (R.T. Pascale, 1984). This is an emergent strategy as the
manufactures are producing high volumes of a products prior to the understanding of the demand of the
motorcycles. Additionally, Honda start-up had an equal amount of each model, “we configured our start-up
inventory with 25 per cent of each of our four products” (Mintzberg.H. R.T. Pascale, 1996). Despite being
aware that 50cc bikes are not as favourable as the 250cc and the 305cc bikes. Honda then executed their
deliberate strategy in the first year with the understanding that the smaller bikes were not going to be popular
in the US market and not attempting to promote the 50cc bikes. “we have not attempted to move the 50cc
Super- cubs. They seemed wholly unsuitable for the US market where everything was bigger and more
luxurious” (Mintzberg.H. R.T. Pascale, 1996).
However, the strategies soon switched back to being emergent when the 50cc bikes attracted a lot of interest
whilst being used in Los Angeles. Within emergent strategy a key point that organisations need to consider is
the flexibility. Organisations should keep an open mind, as well as keeping their options open. (Evans, 1991)
“But when the larger bikes started breaking, we had no choice. And surprisingly, the retailers who wanted to
sell them weren’t motorcycle dealers, they were sporting goods stores” (Mintzberg.H. R.T. Pascale, 1996). This
is a prime example of Honda demonstrating their flexibility to venture their products to an alternative market,
thus demonstrating emergent strategy.
Honda’s success in the US was due to the organisation being able to use both deliberate and emergent
strategies upon entry, as Honda was able to learn their miscalculations and react to the unexpected. However,
using emergent strategies invokes risks as it is a strategy that is often not a planned and once applied, it carries
an equal chance of being success or a failure.
Virgin
The Virgin group is an example of emergent strategy as is clear from their prior business ventures and the
multiple markets which Virgin has become involved in. “The Virgin Group is a highly diversified organisation
which runs a range of businesses including mobile telephone, financial services, airlines, railways, music,
holidays and health and care services” (Sweet. M, 2016). This is a good example of ‘flexibility’ as Virgin have
kept their options open, by not committing to irreversible investments. Letting strategy emerge means not
prematurely locking the organisation into a pre-set course of action (Evans, 1991).

Virgin has used the emergent strategy over its entire lifespan. It focuses on opportunism and flexibility
meaning that the organisation retains enough mental freedom to grab unforeseen opportunities as they
emerge, as opposed to sticking to a specific market. Virgin takes the view that there are always opportunities
available for the hungry business executive. “Business opportunities are like buses, there’s always another
coming along” (Virgin, 2012). Branson uses this to explain that Virgin examines new opportunities to see if the
organisation can offer something ‘better, fresher and more valuable’ than existing companies. “Virgin looks for
market opportunities where the Group believes its brand can create competitive advantage, usually in markets
where existing customers are not receiving value for money, such as health clubs, cosmetics, weddings, drinks,
airlines and clothing” (Sweet. M, 2016).
According to Richard Branson and Virgin, the key to succeeding when being strategically emergent is to be able
to locate new market opportunities and to generate a brand name to create a competitive advantage.
“Contrary to what people may think, our constantly expanding and eclectic empire is neither random nor
reckless. Each new business demonstrates our skill at picking the right market and the right opportunity”
(Sweet. M, 2016). Branson also states that organisations should succeed within the first year or exit the
market, this goes against intended strategies as with this mentality you cannot follow a direct plan. In 2013,
Virgin Atlantic launched a UK domestic airline. After 18 months, it was scrapped.
Virgins’ success in the UK was due to the organisation being emerging strategists utilising emerging features
such as; opportunity, flexibility, learning and entrepreneurship. However, if Virgin was to adopt the deliberate
strategy approach they would not have achieved their current level of success due to them not being able to
see an opportunity in a market and change their business plans to that specific market due to their
commitment.
Google
Google’s return to China is a clear case of deliberate strategy due to their determination to launch a search
engine suitable for China. “The internet giant is working on a censored search engine for China that will filter
websites and search terms that are blacklisted by the Chinese government” (Yuan. L, 2018). This is a good
example of Direction as Google have a clear objective, which is to launch a search engine suitable for China.
Having an objective helps people in the organisation to know what they are working towards and therefore
would not be able to judge what constitutes effective behaviour (Chakravarthy, B.S. & Lorange, P, 1991).
Google aimed to use the deliberate strategy in order to gain their way back into Chin by focusing on
commitment by setting objectives and drawing up a plan to accomplish them. For example, organisations must
invest resources, train people, build up production capacity and take a clear position within their enrolment
(Ghemawat.P, 1991). A google spokesman expressed that a team of engineers have been “investing for many
years to help Chinese users, from developing Android, through mobile apps such as Google Translate and Files
Go, and our developer tools” (Cuthbertson, 2018). Co-ordination is another key element of deliberate strategy.
An organisations master plan can ensure that one consistent course of action is followed throughout the entire

organisation. Google has used co-ordination within their execute plan to revive the search engine in China, by
adapting it to the Chinese market. For example, searches concerning "human rights, Nobel Prize, and student
protest," have been restricted to comply with China's strict censorship laws. (Cuthbertson, 2018). As such
“Google’s reversal in China, which was reported earlier by The Intercept, is the latest example of how
American tech companies are trying to tailor their products to enter the huge Chinese market.” (Yuan.
L, 2018). Acting on this element of deliberate strategy will help Google to minimise overlapping, conflicting and
contradictory behaviour within the organisation (Ackoff. R.L, 1981). Google’s strategy for success in China will
be down to the use of deliberate strategy. Deliberate strategy will help Google be focusing on an intended
course of action and to meet the objectives. If Google was to adopt the emergent strategy approach they
would not be as successful as they would find it challenging to understand what they must do in-order to
relaunch a censored search engine in China without a plan.
Coca-Cola
Coca-Cola’s purchase of costa is a prime example of emergent strategy as it is evidently a completely new
venture for the cold drink organisation. “They [Coca-Cola] have no coffee in their range,” (Wood.Z, 2018). This
is a good example of opportunism as Coca-Cola have ventured into a new completely new market, thus making
them instant market leaders with an “overnight turn into the UK’s biggest coffee shop player. The global coffee
shop market alone is worth £127bn” (Wood.Z, 2018).
Entrepreneurship and opportunity are some key features to succeed when executing an emergent approach.
Coca-Cola demonstrated this perfectly by entering the coffee market as soon as one of their other markets
took a hit. “Coca-Cola’s move into coffee comes in the same week the government put fizzy drink makers in
the spotlight by announcing a ban on the sale of energy drinks such as Relentless, which is owned by Coke”
(Wood.Z, 2018). This new market venture from energy drinks to coffee demonstrates Coca-Cola going against
intended strategy as it is not part of a direct plan. Coca-Cola are venturing into markets that they do not
specialise in. Coca-cola’s success in the UK was due to the organisation being emerging strategists utilising
emerging features such as; opportunity, flexibility, learning and entrepreneurship. Using these tools allows
Coca-Cola to venture into unfamiliar markets and has allowed the organisation to build the brand name.
Conclusion
There are advantages to using strategies and there are success stories to both sides. A Deliberate strategy
approach offers a clear, direct purpose and clear-cut focus any objectives set; in the event that this method
proves successful it can legitimise the adoption of that strategy and also gain support from stakeholders.
Emergent strategies offer stakeholders the flexibility to alter any behavioural patterns depending on the
feedback received from actions taken. However, adopting both strategies that was demonstrated by Honda
could prove to be more beneficial as you can gain the advantages offered by both strategies whilst eliminating
the disadvantages.
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