Slide 6.1 Bernard Burnes, Managing Change, 5 th Edition, © Pearson Education Limited 2009 Chapter...

Slide 6.1

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Chapter 6Chapter 6

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Approaches to strategyApproaches to strategyManagerial choice and constraintsManagerial choice and constraints

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StrategyStrategy

Strategy is concerned with decision-making.Strategy is concerned with decision-making.

Decisions about:Decisions about: The PastThe Past The PresentThe Present The Future. The Future.

Strategy is concerned with coping with change:Strategy is concerned with coping with change: Sit backSit back ReactReact Anticipate. Anticipate.

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Definitions of strategyDefinitions of strategy1960s1960s

AnsoffAnsoff Focus on the external environmentFocus on the external environment Product-market mix.Product-market mix.

ChandlerChandler Determination of long-range business goalsDetermination of long-range business goals The courses of action necessary to achieve these. The courses of action necessary to achieve these.

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Figure 6.1 Product–market mix

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Figure 6.2 SWOT analysis

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Johnson and Scholes (1993)Johnson and Scholes (1993)

Strategy:Strategy: Concerns the full scope of the organisation’s Concerns the full scope of the organisation’s

activities.activities. Is the process of matching the organisation’s Is the process of matching the organisation’s

activities to its environment.activities to its environment. Is the process of matching its activities to its Is the process of matching its activities to its

resource capability.resource capability. Has major resource implications.Has major resource implications. Affects operational decisions.Affects operational decisions. Is affected by the values and beliefs of those who Is affected by the values and beliefs of those who

have power in the organisation.have power in the organisation. Affects the long-term direction of the organisation.Affects the long-term direction of the organisation.

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Strategic management is concerned with complexity arising out of ambiguous and non-routine situations with

organisation-wide rather than operations-specific implications. … Nor is strategic management concerned only with taking decisions about major issues facing the organisation. It is also concerned with ensuring that the strategy is put into effect. It can be thought of as having three elements within it … understanding the strategic position of an organisation, strategic choices for the

future and turning strategy into action.

(Johnson and Scholes, 2002: 15–16)

Strategic managementStrategic management

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Mintzberg on strategyMintzberg on strategy

Five definitions:Five definitions: Plan Plan –– Intended actionsIntended actions Ploy Ploy –– ManoeuvreManoeuvre Pattern Pattern – – Consistent trend of Consistent trend of

behaviourbehaviour Position Position – – Avoiding competitionAvoiding competition Perspective Perspective – Common view. – Common view.

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1. The rationalistic view – which sees strategy as the outcome of a series of preplanned actions designed to achieve the stated goals of an organisation in an optimal fashion.

2. The adaptive or incremental view – which sees strategy evolving through an accumulation of relatively small changes over time.

3. The interpretative view – which sees strategy as the product of individual and collective attempts to make sense of, i.e. interpret, past events.

Johnson (1987)

Johnson’s three basicviews of strategy

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Making sense of strategyMaking sense of strategy

Prescriptive:Prescriptive: Ansoff Ansoff Chandler Chandler Porter.Porter.

Analytical:Analytical: MintzbergMintzberg PettigrewPettigrew Child and Smith Child and Smith StaceyStacey Hamel and Prahalad.Hamel and Prahalad.

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The strength of the Prescriptive school The strength of the Prescriptive school

Firstly, the proponents set out deliberately to address the needs Firstly, the proponents set out deliberately to address the needs of industry and commerce by providing them with a blueprint for of industry and commerce by providing them with a blueprint for strategy formulation and implementation. strategy formulation and implementation.

Secondly, they interacted closely with a number of leading Secondly, they interacted closely with a number of leading consultants, notably the Boston Consultancy Group, and consultants, notably the Boston Consultancy Group, and business schools, notably Harvard, to promote their work and business schools, notably Harvard, to promote their work and tailor it to the needs of organisations. By reinforcing and tailor it to the needs of organisations. By reinforcing and promoting each other, this triple alliance of researchers, promoting each other, this triple alliance of researchers, consultants and educators created an iron orthodoxy that consultants and educators created an iron orthodoxy that organisations, especially large ones, felt they ignored at their organisations, especially large ones, felt they ignored at their peril. peril.

Lastly, because all three groups in this triple alliance were in Lastly, because all three groups in this triple alliance were in effect engaged in a business activity, selling strategy as a effect engaged in a business activity, selling strategy as a product, they were able to invest in promoting and developing product, they were able to invest in promoting and developing their product in a way that others were not. their product in a way that others were not.

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• Hard data are no more reliable, and in some cases less so, than qualitative data.

• Organisations and managers are not rational entities and do not apply a rational approach to decision-making.

• An organisation’s strategy is as likely to emerge from

unplanned actions and their unintended consequences over a period of time as it is from any deliberate process of planning and implementation.

Criticisms of the Prescriptiveapproach to strategy

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Criticisms of the Analytical Criticisms of the Analytical approach to strategy approach to strategy

To observe [as the proponents of Analytical To observe [as the proponents of Analytical stream of strategy do] that organizations are stream of strategy do] that organizations are

complex, that change is inevitably incremental, complex, that change is inevitably incremental, and that strategy is inevitably adaptive, however and that strategy is inevitably adaptive, however

true, helps very little in deciding what to do. true, helps very little in deciding what to do. Managers wish to be told of a process which they Managers wish to be told of a process which they

can at least partially control and, whatever its can at least partially control and, whatever its weaknesses, that is what rationalist weaknesses, that is what rationalist [[PrescriptivePrescriptive] ]

strategy appears to offer. strategy appears to offer.

(Kay, 1993:357)(Kay, 1993:357)

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Planned and Emergent strategies Planned and Emergent strategies

Deliberate strategy focuses on control – making sure that Deliberate strategy focuses on control – making sure that managerial intentions are realized in action – while managerial intentions are realized in action – while

emergent strategy emphasizes learning – coming to emergent strategy emphasizes learning – coming to understand through the taking of actions what those understand through the taking of actions what those

intentions should be in the first place. ... The concept of intentions should be in the first place. ... The concept of emergent strategy ... opens the door to strategic emergent strategy ... opens the door to strategic

learning, because it acknowledges the organization’s learning, because it acknowledges the organization’s capacity to experiment. A single action can be taken, capacity to experiment. A single action can be taken,

feedback can be received, and the process can continue feedback can be received, and the process can continue until the organization converges on the pattern that until the organization converges on the pattern that

becomes its strategy.becomes its strategy.(Mintzberg (Mintzberg et al,et al, 1998a: 189–190) 1998a: 189–190)

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Figure 6.3 Emergent strategySource: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, the Institute for Operations Research and the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076

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Figure 6.4 Constraints on managerial choice

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Managers have choiceManagers have choice

But choice is constrained byBut choice is constrained by National objectives, practices and cultures:National objectives, practices and cultures:

GM and USAGM and USA Japan and Toyota.Japan and Toyota.

Industry and sector norms:Industry and sector norms: Cars – Lean ProductionCars – Lean Production Agriculture – State Intervention.Agriculture – State Intervention.

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Managers have choice (Continued)Managers have choice (Continued)

Business environment:Business environment: StableStable Dynamic.Dynamic.

Organisational characteristics:Organisational characteristics: StructureStructure CultureCulture PoliticsPolitics Managerial style.Managerial style.

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RememberRemember

Constraints can be manipulated.Constraints can be manipulated.

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Chapter 7Chapter 7

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Applying strategyApplying strategyModels, levels and toolsModels, levels and tools

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Strategy in practiceStrategy in practice

The Competitive Forces modelThe Competitive Forces modelCost leadershipCost leadershipProduct differentiationProduct differentiationSpecialisation by focus.Specialisation by focus.

The Strategic Conflict modelThe Strategic Conflict modelOut-manoeuvre the oppositionOut-manoeuvre the oppositionManipulate the market.Manipulate the market.

The Resource-Based modelThe Resource-Based modelFirm-specific resourcesFirm-specific resourcesDistinctive competencesDistinctive competencesSerendipity.Serendipity.

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Points to note Points to note

All strategies have weaknesses as well as All strategies have weaknesses as well as strengths. strengths.

They tend to be situation-specific. They tend to be situation-specific. Managers need to be familiar with the available Managers need to be familiar with the available

range of strategies and tools. range of strategies and tools. They should use the ones best suited to their They should use the ones best suited to their

circumstances. circumstances. Strategies need necessarily be mutually Strategies need necessarily be mutually

exclusive.exclusive. They may be interchangeable and/or They may be interchangeable and/or

complementary.complementary.

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Levels of strategy Levels of strategy

CorporateCorporate BusinessBusiness Functional.Functional.

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Levels of strategic decision-makingLevels of strategic decision-making

The corporate levelThe corporate level. Strategy at this level concerns the . Strategy at this level concerns the direction, composition and co-ordination of the various direction, composition and co-ordination of the various businesses and activities that comprise a large and businesses and activities that comprise a large and diversified organisation, such as Rupert Murdoch’s News diversified organisation, such as Rupert Murdoch’s News International or Richard Branson’s Virgin empire.International or Richard Branson’s Virgin empire.

The business levelThe business level. Strategy at this level relates to the . Strategy at this level relates to the operation and direction of each of the individual operation and direction of each of the individual businesses within a group of companies.businesses within a group of companies.

The functional levelThe functional level. Strategy at this level concerns . Strategy at this level concerns individual business functions and processes such as individual business functions and processes such as finance, marketing, manufacturing, technology and finance, marketing, manufacturing, technology and human resources.human resources.

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Types of corporate strategyTypes of corporate strategy

Stability strategy Stability strategy Growth strategy Growth strategy Portfolio extension Portfolio extension Retrenchment strategy Retrenchment strategy Harvesting strategy Harvesting strategy Combination strategy. Combination strategy.

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Business-level strategyBusiness-level strategy

... ... the mission of the business, the the mission of the business, the attractiveness of the industry in which the attractiveness of the industry in which the

business belongs, and the competitive position business belongs, and the competitive position of the business unit within the industry. These of the business unit within the industry. These

are the inputs that determine the strategic are the inputs that determine the strategic agenda of a business and lead to the agenda of a business and lead to the

formulation and implementation of its strategy.formulation and implementation of its strategy.(Hax and Majluf, 1996: 46)(Hax and Majluf, 1996: 46)

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Functional-level strategyFunctional-level strategy

This has often been neglected by Western organisationsThis has often been neglected by Western organisationsbecause of: because of:

The concentration at both the corporate and business levels on The concentration at both the corporate and business levels on the external world, i.e. the market, led to a lack of interest in the the external world, i.e. the market, led to a lack of interest in the internal operation of organisations. The assumption was that internal operation of organisations. The assumption was that the internal world was malleable, and could and should adjust to the internal world was malleable, and could and should adjust to the priorities set by corporate and business strategists. the priorities set by corporate and business strategists.

The key elements of functional level strategy, especially The key elements of functional level strategy, especially concerning finance, marketing, R&D and technology, were in concerning finance, marketing, R&D and technology, were in effect determined and constrained by corporate strategists. effect determined and constrained by corporate strategists. Indeed, in many organisations, even the human resource Indeed, in many organisations, even the human resource strategy was determined at the corporate level. strategy was determined at the corporate level.

Even though the 1980s saw a renewed interest in functional- Even though the 1980s saw a renewed interest in functional- level strategy, this tended to be one-sided, stressing soft, level strategy, this tended to be one-sided, stressing soft, personnel-type issues. personnel-type issues.

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Strategic typesStrategic types

DefendersDefenders. . ProspectorsProspectors. . Analysers.Analysers. Reactors.Reactors.

Miles and Snow (1978)Miles and Snow (1978)

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Strategic typesStrategic types

DefendersDefenders. These seek internal stability and efficiency by . These seek internal stability and efficiency by producing only a limited set of products, directed at a producing only a limited set of products, directed at a narrow but relatively stable segment of the overall market, narrow but relatively stable segment of the overall market, which they defend aggressively. Such organisations are which they defend aggressively. Such organisations are characterised by tight control, extensive division of labour characterised by tight control, extensive division of labour and a high degree of formalisation and centralisation.and a high degree of formalisation and centralisation.

ProspectorsProspectors. These are almost the opposite of defenders. . These are almost the opposite of defenders. They aim for internal flexibility in order to develop and They aim for internal flexibility in order to develop and exploit new products and markets. To operate effectively exploit new products and markets. To operate effectively in a dynamic environment they have a loose structure, low in a dynamic environment they have a loose structure, low division of labour and formalisation, and a high degree of division of labour and formalisation, and a high degree of decentralisation.decentralisation.


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Strategic types (Continued)Strategic types (Continued)

AnalysersAnalysers. These types of organisation seek to capitalise . These types of organisation seek to capitalise on the best of both the preceding types. They aim to on the best of both the preceding types. They aim to minimise risk and maximise profit. They move into new minimise risk and maximise profit. They move into new markets only after viability has been proved by markets only after viability has been proved by prospectors. Their internal arrangements are prospectors. Their internal arrangements are characterised by moderately centralised control; with tight characterised by moderately centralised control; with tight control over current activities but looser controls over new control over current activities but looser controls over new undertakings.undertakings.

ReactorsReactors. This is a residual strategy. These types of . This is a residual strategy. These types of organisation exhibit inconsistent and unstable patterns organisation exhibit inconsistent and unstable patterns caused by pursuing one of the other three strategies caused by pursuing one of the other three strategies erratically. In general, reactors respond inappropriately, erratically. In general, reactors respond inappropriately, perform poorly, and lack the confidence to commit perform poorly, and lack the confidence to commit themselves fully to a specific strategy for the future.themselves fully to a specific strategy for the future.


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Strategic planning toolsStrategic planning tools

ExamplesExamples PrescriptivePrescriptive

Growth-Share MatrixGrowth-Share Matrix AnalyticalAnalytical

Scenario/Vision Building.Scenario/Vision Building.

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Figure 7.3 BCG Growth-Share Matrix

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A scenario is ‘… a detailed and plausible view of how the business environment of an

organisation might develop in the future based on groupings of key environmental

influences and drivers of change about which there is a high level of uncertainty’.

(Johnson and Scholes, 2002: 107)

What is a scenario?What is a scenario?

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Vision-building Vision-building

Compelling visions have two components: Compelling visions have two components: A core ideology which describes the A core ideology which describes the

organisation’s core values and purpose; and organisation’s core values and purpose; and A strong and bold vision of the organisation’s A strong and bold vision of the organisation’s

future which identifies specific goals and future which identifies specific goals and changes. changes.

Collins and Porras (1997)Collins and Porras (1997)

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The major elements ofThe major elements ofvision-buildingvision-building

The conception by a company’s senior The conception by a company’s senior management team of an ‘ideal’ future state for management team of an ‘ideal’ future state for their organisation.their organisation.

The identification of the organisation’s mission, its The identification of the organisation’s mission, its rationale for existence.rationale for existence.

A clear statement of desired outcomes and the A clear statement of desired outcomes and the desired conditions and competences needed to desired conditions and competences needed to achieve these.achieve these.

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Criticisms of the scenario/vision- building Criticisms of the scenario/vision- building approachapproach

They are prone to subjectivity and bias. The fact that They are prone to subjectivity and bias. The fact that any five management specialists can interpret the any five management specialists can interpret the same situation in totally different ways is an oft-quoted same situation in totally different ways is an oft-quoted example of this type of criticism.example of this type of criticism.

They can encourage retrospection. People’s ideas of They can encourage retrospection. People’s ideas of the future are informed by their knowledge and the future are informed by their knowledge and experience of the past. Since experience is not experience of the past. Since experience is not always the best teacher, scenarios and visions may always the best teacher, scenarios and visions may be based on false assumptions.be based on false assumptions.

Participants can be strongly influenced in their Participants can be strongly influenced in their preference of scenario by their own sectional and preference of scenario by their own sectional and personal interests.personal interests.

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Criticisms of the scenario/vision- building Criticisms of the scenario/vision- building approach (Continued)approach (Continued)

The process cannot be carried out by novices and The process cannot be carried out by novices and can, therefore, be time-consuming and expensive in can, therefore, be time-consuming and expensive in terms of senior management time and outside terms of senior management time and outside experts.experts.

There is much debate about how many scenarios to There is much debate about how many scenarios to construct and how they should be used.construct and how they should be used.

The more radical the vision or scenario, the more The more radical the vision or scenario, the more difficult it will be to get managers and others to difficult it will be to get managers and others to commit to it.commit to it.

Visions often require strong visionary leaders, which Visions often require strong visionary leaders, which are in short supply.are in short supply.

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The Prescriptive viewThe Prescriptive view

Strategy:Strategy: Is a rational/economic processIs a rational/economic process Matches products to marketsMatches products to markets Uses mathematical models of trendsUses mathematical models of trends Is top-downIs top-down Consists of detailed plansConsists of detailed plans Drives change. Drives change.

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The Analytical viewThe Analytical view

StrategyStrategy Is a rational and a social processIs a rational and a social process Emerges from the continual stream of choices Emerges from the continual stream of choices

organisations make on a day-to-day basisorganisations make on a day-to-day basis Is bottom-up and top-downIs bottom-up and top-down Choice is constrained by structure, resources, Choice is constrained by structure, resources,

culture and visionculture and vision Emerges from change. Emerges from change.

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Additional MaterialAdditional Material

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Child and Smith’s firm-in-sector Child and Smith’s firm-in-sector perspectiveperspective

The ‘objective conditions’ for successThe ‘objective conditions’ for success. Though each . Though each firm within a sector may pursue a different strategy, firm within a sector may pursue a different strategy, these will all tend to focus on or be determined by similar these will all tend to focus on or be determined by similar success factors such as customer satisfaction, quality, success factors such as customer satisfaction, quality, profitability, etc. profitability, etc.

The prevailing managerial consensusThe prevailing managerial consensus. ‘… at least . ‘… at least within well-established sectors, the senior managers of within well-established sectors, the senior managers of constituent firms hold very similar constructs of the constituent firms hold very similar constructs of the sector’s operational dynamics which effectively furnish sector’s operational dynamics which effectively furnish the rules of the game for the sector’. the rules of the game for the sector’.

The collaborative networks operating in the sectorThe collaborative networks operating in the sector. . ‘… a sector does not only consist of product competitors; ‘… a sector does not only consist of product competitors; it is also a it is also a network network of potential and actual collaborators’. of potential and actual collaborators’. Such collaborations may be with customers, suppliers, Such collaborations may be with customers, suppliers, outside experts or even competitors.outside experts or even competitors.

(Child and Smith, 1987: 566–569)(Child and Smith, 1987: 566–569)

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Morgan’s organisational metaphorsMorgan’s organisational metaphors

Organisations as machinesOrganisations as machines Organisations as organismsOrganisations as organisms Organisations as brainsOrganisations as brains Organisations as culturesOrganisations as cultures Organisations as political systemsOrganisations as political systems Organisations as psychic prisonsOrganisations as psychic prisons Organisations as flux and transformationsOrganisations as flux and transformations Organisations as instruments of dominationOrganisations as instruments of domination

Morgan (1986)Morgan (1986)

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[Some organisations pursue] ... umbrella strategies: the broad outlines are deliberate while

the details are allowed to emerge within them. Thus emergent strategies are not bad and

deliberate ones good; effective strategies mix these characteristics in ways that reflect the

conditions at hand, notably the ability to predict as well as the need to react to unexpected

events.

(Mintzberg, 1994: 25)

Umbrella strategiesUmbrella strategies

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Whittington’s categorisationsWhittington’s categorisations

The Classical approach: based on analysis and The Classical approach: based on analysis and quantification.quantification.

The Evolutionary approach: organisations are at the The Evolutionary approach: organisations are at the mercy of the unpredictable and hostile vagaries of the mercy of the unpredictable and hostile vagaries of the market.market.

The Processual approach: organisations are shifting The Processual approach: organisations are shifting coalitions with different interests. Markets are coalitions with different interests. Markets are capricious and imperfect.capricious and imperfect.

The Systemic approach: strategy can be a deliberate The Systemic approach: strategy can be a deliberate process but only if the conditions within the host process but only if the conditions within the host society are favourable.society are favourable.

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Equifinality Equifinality

... ... quite simply means that different sorts of internal quite simply means that different sorts of internal arrangements are perfectly compatible with identical arrangements are perfectly compatible with identical

contextual or environmental states. The principle goes contextual or environmental states. The principle goes against the idea of a quasi-ideal ‘match’ which is against the idea of a quasi-ideal ‘match’ which is

inherent in the principle of correspondence. Whereas inherent in the principle of correspondence. Whereas correspondence correspondence [[i.e. i.e. Contingency]Contingency] theory suggests that theory suggests that rigid and bureaucratic structures are not a good match rigid and bureaucratic structures are not a good match

for volatile and shifting product markets, equifinality for volatile and shifting product markets, equifinality theorists claim that it may very well turn out to be a theorists claim that it may very well turn out to be a good match but only if the level and diversity of the good match but only if the level and diversity of the

workforce is large and organization culture produces workforce is large and organization culture produces motivated and flexible actorsmotivated and flexible actors..

(Sorge, 1997: 13)(Sorge, 1997: 13)

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The Strategic Conflict modelThe Strategic Conflict model

This model portrays competition as war between rival firms. Its This model portrays competition as war between rival firms. Its proponents tend draw on the work of military strategists such proponents tend draw on the work of military strategists such as von Clausewitz and Sun Tzu.as von Clausewitz and Sun Tzu.

It stresses the dynamic nature of strategy and the need to It stresses the dynamic nature of strategy and the need to respond to competitors who do not always behave as respond to competitors who do not always behave as anticipated. anticipated.

Central to this approach is the view that a firm can achieve Central to this approach is the view that a firm can achieve increased profits by influencing the actions and behaviour of its increased profits by influencing the actions and behaviour of its rivals and thus, in effect, manipulate the market environment. rivals and thus, in effect, manipulate the market environment.

This can be done in a number of ways, such as by investment This can be done in a number of ways, such as by investment in capacity, R&D and advertising. in capacity, R&D and advertising.

However, such moves will have little impact if they can be However, such moves will have little impact if they can be easily undone; therefore, to be effective, they require easily undone; therefore, to be effective, they require irreversible commitment.irreversible commitment.

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The Resource-Based modelThe Resource-Based model

The focus of the resource-based model of competitive The focus of the resource-based model of competitive advantage is on the relationship between an organisation’s advantage is on the relationship between an organisation’s resources and its performance. resources and its performance.

The resource-based view sees above-average profitability The resource-based view sees above-average profitability as coming from the effective deployment of superior or as coming from the effective deployment of superior or unique resources that allow firms to have lower costs or unique resources that allow firms to have lower costs or better products, rather than from tactical manoeuvring or better products, rather than from tactical manoeuvring or product market positioning. product market positioning.

Such resources include tangible assets, such as plant and Such resources include tangible assets, such as plant and equipment; intangible assets, such as patents and brands; equipment; intangible assets, such as patents and brands; and capabilities, such as the skills, knowledge and and capabilities, such as the skills, knowledge and aptitudes of individuals and groups. aptitudes of individuals and groups.

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Strategic questionsStrategic questions

Corporate strategy is concerned with questions such as: Corporate strategy is concerned with questions such as: What is the mission of the organisation?What is the mission of the organisation? What are its unique attributes?What are its unique attributes? How should the business portfolio be managed?How should the business portfolio be managed? Which existing businesses should be disposed of and which new Which existing businesses should be disposed of and which new

ones acquired?ones acquired? What priority and role should be given to each of the businesses in What priority and role should be given to each of the businesses in

the current portfolio?the current portfolio? The central strategic concerns at the individual business The central strategic concerns at the individual business

level are:level are: How should the firm position itself to compete in distinct, How should the firm position itself to compete in distinct,

identifiable and strategically relevant markets?identifiable and strategically relevant markets? Which types of products should it offer to which groups of Which types of products should it offer to which groups of

customers?customers? How should the firm structure and manage the internal aspects of How should the firm structure and manage the internal aspects of

the business in support of its chosen competitive approach?the business in support of its chosen competitive approach?

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Strategic questions (Continued)Strategic questions (Continued)

Functional level strategy concerns itself with the Functional level strategy concerns itself with the following issues:following issues: How can the strategies formulated at the corporate and How can the strategies formulated at the corporate and

business levels be translated into concrete operational terms business levels be translated into concrete operational terms in such a way that the individual organisational functions and in such a way that the individual organisational functions and processes (marketing, R&D, manufacturing, personnel, processes (marketing, R&D, manufacturing, personnel, finance, etc.) can pursue and achieve them?finance, etc.) can pursue and achieve them?

How should the individual functions and processes of the How should the individual functions and processes of the business organise themselves in order not only to achieve business organise themselves in order not only to achieve their own aims, but also to ensure that they integrate with the their own aims, but also to ensure that they integrate with the rest of the business to create synergy?rest of the business to create synergy?

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Figure 7.4 Main external and internal factors of matrices (adapted from Hax and Majluf, 1996: 302)

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MintzbergMintzberg

... ... umbrella strategies: the broad outlines are umbrella strategies: the broad outlines are deliberate while the details are allowed to emerge deliberate while the details are allowed to emerge within them. Thus emergent strategies are not within them. Thus emergent strategies are not bad and deliberate ones good; effective bad and deliberate ones good; effective strategies mix these characteristics in ways that strategies mix these characteristics in ways that reflect the conditions at hand, notably the ability reflect the conditions at hand, notably the ability to predict as well as the need to react to to predict as well as the need to react to unexpected eventsunexpected events..

(Mintzberg, 1994: 25)

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