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Rational versus emergent strategy, and other models of strategy - Coggle…
Rational versus emergent strategy, and other models of strategy
Lynch (2015) suggests that the people who are accountable and/or in charge of an organisation will have agreed to their strategic plans (rational) and are unlikely to simply sit back and allow the operational managers to adapt and amend the strategy (emergent)
Any organisation only has finite resources, these must be utilised in a structure manner (rational) and cannot be allowed simply to be consumed as the need demands (emergent)
The timeframe and length of a strategy will have a significant impact on the interaction of rational and emergent thinking.
A short term strategy ill have more chance of remaining within rational boundaries whereas a longer term strategy will inevitably be more affected by emergent strategies (not least the evolution of human minds)
It is also important that there are rational boundaries for a longer term strategy to ensure that a core focus is maintained and there is an eventual satisfaction of the strategic objectives even if these have been reframed as a result of emerging forces
Lynch also suggests that rational decision making based upon evidence is more likely to be successful than hunches or personal whims
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Institutional theory
All organisations operate within an environment that is populated by a range of differing institutions and a complex web of institutional behaviour
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An organisation has the choice of adapting its strategy to the surrounding institutional behaviour or attempting to challenge and change the perceived common behaviours
The ecological view
Ecologists would argue that any organisations will evolve its own ecosystem, operating within the institutional structures that surround it
Development is, by its nature, incremental and will lead to one of three outcomes - a change to the perceived norm; an adaption to the surrounding structures or the decline of the organisation.
Iansiti and Levien (2004) take this concept further by suggesting that each member of a business ecosystem will ultimately share the fate of the network as a whole, regardless of individual strength.
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Competitive structures
Ohmae (1982)
Suggests that a good business strategy is one by which a company can gain significant ground on its competitors at an acceptable cost
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Corporation
the organisation structure itself and how it is designed to operate within the various competing environments where it is situated
Porter (1980)
Suggets that competitive strategy is the taking of offensive or defensive actions to create a defendable position within an industry and therefore being able to generate a superior return on investment
Three core aspects
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The achievement of a sustainable strategic position in a competitive environment will require an organisation to recognise that it cannot be all things to all people and that it will need to live with inconsistencies in the ability to include trade offs within its business model
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