Whenever an organization succeeds in terms of profitability and productivity, it is usually assumed to have effective strategies. But the effectiveness of the strategy for a prolonged time remains dubious. Strategies are developed by the management with the support of logical approach, analytical activities, and experiences. Present day management researchers added another agent to the above mentioned ingredients of strategy making, i.e. the dynamic nature of business environment which keeps on changing. The changing nature of business environment influences the effectiveness of the strategies and brings differences in its output (Murray, Poole & Jones, 2005, p.168).
Present report is an attempt to analyze the different views of researchers on strategic planning and its associated factors. In a broader sense the study discusses ‘Prescriptive and Emergent’ approaches to strategy formulation and their suitability in the present day business organizations.
Irrespective of suggested views and arguments on the concept of strategic management, organizations as well as academicians have agreed on the core concept which describes conversion of organizational resources into needs of unsatisfied customers keeping a profit which satisfies the long-term objectives of the stockholders. The debate among the researchers is regarding the methods, models, system, or processes which could be used to achieve the core objective of strategy. The approaches for strategic planning, irrespective of the methods, models, and processes used to execute the plan, can be classified into four generalized approaches as General Electric/Ansoff /McKinsey approaches, Management by objective approaches, Business policy approach, and Non-strategic approach. The approach described by the GE/Ansoff/McKinsey is considered to be the most standard one because the remaining