Strategic School of Thoughts by Henry Mintzberg - Coursework Example

Strategic Management Table of Contents Strategic management theory 3 Strategic School of Thoughts by Henry Mintzberg 4 Michael Porter view on Outside-in 6 Hamel, Prahalad and Jay Barney inside-out approach 7 Best integrated approach towards strategic management theory 8 References 10 Strategic management theory The book Strategy Safari by Joseph Lampel, Bruce Hlstrand and Henry Mintzberg provides a perfect overview on the field of business and academic educations of strategic approach. Previously, Henry Mintzberg was renowned for development of strategic Configuration School and advocacy of Emergent Tactic. The book Strategy Safari is a fundamental departure from the previous known position of Henry Mintzberg. The book seeks to find value, categorize and comprehend in the series of strategic and planned thinking. The authors explore complex and unique components on the field of strategy. The practitioners are described as blind men and the strategy is labeled as elephant (Adrian, 2000, p.92). The reason behind the labeling is due to complexity of completely understanding strategy. Subsequently, the authors stated that field can be fragmented in to 10 schools of judgments components. Moreover, it is believed that these 10 components help to create virtual vision of strategic beast. According to Volberda and Elfring, school of thought provides vivid explanation about variety of thought of particular examiners which has been preserved and crystallized. Additionally, it is understood as institutionalized paradigm (Armstrong, 2002, p.28). According to Mintzberg, strategy develops over a period of time as meanings accommodate and collide with varying truth. Consequently, one might start and conclude in certain position. Furthermore, this can be achieved by cautious crafted plan. Many other authors along with Henry Mintzberg became the advocate of devil in strategy model. Henry Mintzberg claimed that human beings are not capable enough to comprehend, analyze and understand the job of strategic assessments. Therefore, it is believed that execution of effective strategy is required to be formulated as synthesis and intuitive practices. In the words of Henry Mintzberg, the process of strategic planning is been elaboration, articulation and programming of strategies. First of all, it is vital to know the meaning of strategic management theory. The management theory involvesapplication and preparationofmain initiatives and objectives that are required to be executed by top management of a company. This process of application of effective management based on internal and external environments assessments (Augen, 2008, p.37). According to Henry Mintzberg, the strategic management theory involves identifying intentions and goals of organization and providing general path to the enterprise. Furthermore, this theory is based on allocation designs and designing plan to accomplish objectives of the organizations. Numerous frameworks and models have been developed for providing help to strategic decision making process. In the era of globalization and technological advancement, it is vital for multinational businesses to create strategy for revenue growth and sustainability. Moreover, it is believed that multination businesses have shifted to global integrated enterprises. It is assumed that there are two possibilities of alterations. Firstly, who produces things in companies and where production of these things occurs (Blythe, 2012, p.42). Implementation and formulation are two major processes that are often described as vital for strategic management theory. The writings on business management theory are viewed as most distinct feature of research findings of Henry Mintzberg. The importance of emergent strategy is heavily emphasized by the author. It is supposed that emergent strategy can arise at any level of abusiness. Strategic School of Thoughts by Henry Mintzberg According to psychologists, the rule of thumb is based on a person that can only think about two things such as seven plus minus at any specified point of time.Henry Mintzberg can only think about ten school of thoughts based on explanation about strategic management theory. The application of theories by Henry Mintzberg was primarily based on development of organization. The contribution of author to the management thinking is not primarily centered on one or more pivotal theories. The approach of Henry Mintzberg was broad and disciplined. The general appeal of Mintzberg is believed to be enhanced and modified by fundamental belief. The author provided detailed and thoughtful analysis on responsibilities and aim of managers that are required to be performed. This process of management work is thought to different from that of normal business theory (Collins and Shemko, 2009, p.124). 10 schools of opinions and thoughts are Configuration School, Environmental School, Cultural School, Positioning School, Learning School, Cognitive School, Entrepreneurial School, Planning School, Design School and Power School. The evolution in the field of strategy has been effectively represented in the book Strategy Safari. These 10 schools of thoughts are presented by Henry Mintzberg on strategic management theory. Each of the school provides unique perspective on major strategic formation procedure. This resembled the fact that Henry Mintzberg tried effectively to integrate best possibly approach to the strategic management theory. Some of the famous modern theorists such as Hamel, Prahalad, Jay Barney and Michael Porter integrated different perspective on school of thought. Two distinct views that have emerged from modern theories are inside-out approach and outside-in approach (Doole, 2012, p.62). According to Henry Mintzberg, the first three schools such as the design, planning and positioning school are regarded as prescriptive. This is mainly due to the fact that these schools are concerned and anxious on how these strategies would be formulated effectively rather than focusing on how they are designed. In 1960, the design school was formed. This school describes the creation of strategies as a procedure of conception and casual design. In 1970s, the planning school war formed and extensively practiced (Mintzberg, 2004, p.16). This school views strategy as organized and detached method. At the end of year 1980, the planning school was replaced by positioning school. The positioning school chiefly discovers on the choice of tactical situations. The next six school such as entrepreneurial, cultural, learning, cognitive, environmental and power schools. These six schools basically describe how strategies are prepared. The formations of strategic visioning are cognitive and entrepreneurial schools. Many of the well-known researchers and strategists stated that entrepreneurships are vital for formation of strategy. Strategy and entrepreneurship are viewed to be associated with each other. Any great leader has power and prowess to motivate their employees as visionary process. The cognitive school is considered as smaller than that of other school of thoughts. The cognitive school uses messages of cognitive psychology to recognize and apprehend the mind of strategist. According to Henry Mintzberg, environmental, learning, cultural and configurations vividly describes the procedure of strategic formation. This process of formation of strategies is viewed to be beyond the vision of individuals. Moreover, it requires help from other factors and forces. Michael Porter view on Outside-in The outside-in approach is a traditional approach which effectively emphasizes on market and competitive forces. Moreover, it is believed that work of Michael Porter is associated with outside-in approach on strategic management. The viewpoints of these approaches are based on focusing on abnormal profit that comes from development of effective competitive tactic and looking at the market scenario to gain competitive advantage over other rivals. One of the pivotal business unit strategic tools for outside-in approach is Porter Five Forces Model. This model is primarily used to analyze the value and attractiveness of business arrangement. There are five fundamental competitive forces which enable to make competitive force analysis (Ferrell and Hartline, 2010, p.29). These fundamental forces are the threats of substitutes, the bargaining power of suppliers, the entry of competitors, the rivalry among existing businesses and the bargaining power of buyers. Since the year 1980, Porter Five Forces Model based on outside-in approach has become pivotal method for analyzing the industrial structure of an organization. This is primarily referred as strategic entry barriers in strategic management (Henry, 2011, p.26). The outside-in approach by Michael Porter places the customer, competition and the market on upper position. There are certain levels of business environment which are competitors, markets, industry and the macro-environment. The macro-environment is furthermore analyzed by the use of PESTEL framework (Fyall and Garrod, 2005, p.55). Hamel, Prahalad and Jay Barney inside-out approach Hamel, Prahalad and Jay Barney approaches strategically differently. The inside-out approach of Hamel, Prahalad and Jay Barney is based on thinking about the core strength of organization. It is vital to know the utmost strengths of organization to start strategy processes. The inside-out strategy model implemented by Hamel and Prahalad is CC model. This model is built on focusing on the process of enhancement and improvement. There are three tests that are required to be testes to identify the CC model. The CC of the corporation must be difficult and problematic for other competitors in the market to emulate, significant contribution must be provided on customer benefits and potential access towards variety of markets products are three tests for identifying the CC of corporation. The inside-out approach is totally opposite to outside-in approach (Boehm, 2008, p.51). This approach focuses on long run process. The execution of CC model is viewed to consider combination of attitudes, skills, applied, integrated, inherent and specific knowledge. This approach is based on providing effective strategic management theory by speedy tactic and lower cost than that of other competitors. Best integrated approach towards strategic management theory Michael Porter provided several management strategic framework based on outside-in approach. The strategic framework is based on success on corporation. This can be applicable and valid to many circumstances. On the other hand, Hamel, Prahalad and Jay Barney planned model which is based on inside-out approach. Furthermore, this approach helps to provide core competencies of an organization. Core competence model or inside-out approach is viewed to be as top approach that can be integrated within the strategic management theory. According to C. K. Prahalad and Gary Hamel, market growth can be much easier and organization can effectively move in to new market by implementation of core competence model. This resembles the fact the inside-out approach by Hamel, Prahalad and Jay Barney provide knowledge and information that can difficult for other organization to imitate. (Hill, 2009, p.89) This strategic management theory approach makes organization capable of developing surprising and unexpected products with faster products development and lower production cost. The rapid upsurge of higher rate of production skills and organizational wide technologies are some of the presentable advantages of execution of core competency model. The application of inside-out approach can benefit organization to be more flexible and respond quickly on dynamic environment. Moreover, this approach focuses on combination of applied, combined and cooperative information. The strategic capability of organization can use framework that can be used to identify core competences and unique resources. The core competencies include abilities and skills are that can be used effectively at the time of positioning the resources. The unique resources are related to brand name and established brand (Jeannet, 2005, p.12). There are several challenges of strategic management like viewing of strategic approach in different ways, addressing on contemporary issues and prevention of strategic drift. Some of the problems that are related to prevention of strategic drift are deterioration of management performance and progressive failure. The addressing of contemporary issues includes e-commerce, internationalization, learning and changing processes. The model of Hamel, Prahalad and Jay Barney consists of 4 core competences such as strategy, competitive advantage, capabilities and resources. Moreover, the level of core competencies can be maximized by the use of competencies matrix of C. K. Prahalad and Gary Hamel. The outside in approach by Michael Porter is primarily useful for smaller organizations. Additionally, this approach is beneficial at short term. On the other hand, the inside-out approach by C. K. Prahalad and Gary Hamel is based on higher level firms and long term (Kotler and Armstrong, 2011, p.31). Many of the multinational businesses used to implemented inside-out approach to avoid any future failure and production losses. The development process of Canon Company is perfect example of inside-out approach. At beginning, the Canon Company cultivated and identified the core competencies that are exhibited within the culture. In the 1940s, the company came in to prominence by the production of x-ray machines with high level of information and knowledge. Additionally, the strategic vision of the company is clear and distinct. The objective of the company is based on maintaining future sustainability. This is vital for progress of company on long-term basis (Pitt, 2012, p.47). Where they believe that they could gain expertise by other experts, they subscribed it through joint ventures and license agreement. Therefore, it can be notified that inside-out approach is seen as best approach to be assimilatedand incorporated within the strategy management process. References Adrian, T., 2000. Managing Change, New Jersey, Pearson. Armstrong, G., 2002. Global Marketing Management, New Jersey, Pearson. Augen, J., 2008. The Volatility Edge in Options Trading, New Jersey, John Wiley & Sons. Blythe, J., 2012. Strategic Marketing, London, Kogan page. Boehm, J., 2008. Entrepreneurial Orientation in Academia. New York: Springer. Collins, K., and Shemko, J., 2009. Exploring Business, New York, McGraw-Hill. Doole, I., 2012. International marketing strategy. London: Sage. Ferrell, O., and Hartline, M., 2010. Marketing strategy, New Jersey, John Wiley & Sons. Fyall, A., and Garrod, B., 2005. Marketing: A Collaborative Approach, New Jersey: John Wiley & Sons. Henry, A., 2011. Understanding Strategic Management. London: Sage. Hill, C., 2009. Strategic management theory, London, Routledge. Jeannet, J., 2005. Global marketing strategies, Stamford, Cengage Learning. Kotler, P., and Armstrong, G., 2011. Principles of Marketing, New Jersey, Pearson. Mintzberg, H., 2004. Rise and Fall of Strategic Planning. London: Routledge. Pitt, M., 2012. Essentials of Strategic management, London, Sage. Read More