WEEK 27

1.In your own words and using referenced quotes explain why strategy theories developed in the last 10 years tend to be quite different from those developed in the 1960’s.

The strategy evolved through the practical needs by the business rather than being developed by theory. In early 1960s there were many factors affecting the business strategy. There were political instability around the world , the labor market was inflexible and government intervened in every step of the business. Also there were very few competition in the market and the market share was quite low. Due to this reasons business were more focused on strategic planning where they focused on “doing things right”. The major aim of strategic management was to increase efficiency by following the rules to do business productively. But today the factors mentioned above changes day by day. Due to globalization the market is quite large and there is more competition among business, which makes them more cautious and build best strategy to stay in the competition. They more focused on effectiveness in the strategic management system where they focus on “doing the right thing” to gain competitive advantage.

The major theories that explain the trends in strategy are :

Complexity Theory:

According to this theory strategy is driven by the unpredictable nature of the markets and the organizations. It focuses on self-organization along with the collective behavior to adapt to change / evolution. The emergent and evolutionary strategies can be taken as examples following this strategies.

Options Theory:

The theory states that the competitive advantage comes from flexibility. Since the market is unpredictable, it mentions to keep the options open. The industries become attractive if they keep an open mind and make strategy accordingly. Attractive resources Attractive resources and capabilities are those that are dynamic enough to support different strategies

any organization.

Rapid Adaptation:

Due to rapid change in the nature of market the sustainable competitive advantage cannot be achieved through positioning or resources. Globalization, advance technology and market transparency affect the environment where the business is done. Simply by doing SWOT or value chain analysis company cannot determine its strategy. They need to take several other factors  into account.

Four organizational capabilities that foster rapid adaptation: (Reeves M. and Daimler M. , 2011)

• The ability to read and act on signals of change
• The ability to experiment rapidly and frequently—not only with products and services but also with business models, processes, and strategies
• The ability to manage complex and interconnected systems of multiple stakeholders
• The ability to motivate employees and partners

2. You attend a job interview for an entry level managerial position and mention that you completed a 30 week strategy module. Your interviewer seems interested and explains that this job role would enable you to become involved in the strategy making process. In 200 to 300 words explain to your interviewer how the module has helped to prepare you for a strategy role.

Strategy is something that we apply in our daily lives knowingly or unknowingly. This module taught me many things like strategic management process where the companies applies strategies to make long term objectives. Various strategic processes such as developing, analyzing and implementing a strategy is fairly important for the organization to survive in this competitive business environment. I also used various analytical tools such as SWOT, PESTLE, TWOS, Porter’s Five Forces Model, Strategic grouping, 7s models, etc. that helped me understand the nature of the organization and its internal and external environment better. Also I learned about the different strategic methods the organization could choose that has its own advantage and disadvantage.

Various case studies helped me gain practical knowledge about the real business world scenario. Moreover, the module has also helped me develop my interpersonal skills through presentation, research and team works.  All in all it gave me useful and practical knowledge to develop my skills to become a good strategist and manager in future.

Reference:

Reeves M. and Daimler M. (2011) ‘Adaptability: The New Competitive Advantage’, Harvard Business Review, July-August, pp135-141

Sull D. and Eisenhardt K. (2012) ‘Simple Rules for a Complex World, Harvard Business Review, September, pp69-141.