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Business Management Summative

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Jessie Fu

on 2 May 2013

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Transcript of Business Management Summative

By Jessie, Amy, and Denise Of Strategies, Deliberate and Emergent Pure Deliberate Strategies Definition: The Ideological strategy Definition The Imposed Strategy definition The Consensus Strategy The Unconnected Strategy Definition The Process Strategy - it is similar to the umbrella strategy.
-allows for flexibility.
-the leader normally exercise the influence indirectly.
-it is partly deliberate and partly emergent
-other aspects (except the process ones) are left to other actors, not the leader
-divisionalized organizations use this strategy Umbrella strategy Definition : Pure Emergent Strategies Definition: -leader only have partial control over others
-it is not only deliberate, but deliberately emergent
-strategy puts limits on the actions of others
- all real-world strategies have umbrella characteristics
-central leadership monitor that behaviour of others
-leader alters its own vision in response to the behaviour
of others Example of umbrella strategy The use of one brand name and the recognizable Apple logo make it easy for customers to find and identify Apple products. Under the umbrella brand, the corporation markets computers, phones, accessories, music players and tablets. -inspirational and relatively unchangeable
-it is highly deliberate
-the vision is collective (positively embrace by the members of the organization )
-the environment is unlikely to impose change: the purpose
of ideology is to change the environment OR ELSE to
insulate the organization from it. Examples of ideological strategy The organization has an ideological point of view that determines which specific issuesthey get involved in and which side of an issue they take. Definition: Description for Process Strategy Advantages
-Greater product flexibility
-More general purpose equipment
-Lower initial capital investment (Fixed cost)

Disadvantages
-More highly trained personnel
-More difficult production planning & control -One part of the organization with considerable discretion because it is only loosely coupled to the rest, is able to realize its own pattern in its stream of actions -Relatively emergent from the perspective of the entire organization -Often found in organizations of experts -no one can be sure what was intended Example The National Film Board of Canada, a producer of short films From the 1940s to 1960s, the Film Board produces a thin but steady stream of experimental films. In fact, almost every single film up to 1960s was made by one person, Norman McLaren. He pursued his own personal strategy – ‘did his own thing’. -It is imposed from outside -The environment can directly force the organization into a pattern in its stream of actions -It is the most emergent strategy of all Example Air Canada -In its early years, the minister forced Air Canada to buy and fly a particular type of aircraft. Here the imposed strategy was clearly deliberate, but not by anyone in the organization. Benefits
-When making decisions, there will be an inclusive participation which can engage the group. “increases cooperation!”
-It creates shared understanding among all individual workers.
-It can equalize the distribution of power in a group.
-It can create better solutions that are more representative of the larger community. -It is rather more clearly emergent -There is no need for any central direction or control -Many different workers converge on the same theme, or pattern, so that it becomes pervasive in the organization -A consensus strategy evolves through the results of a host of individual actions. It derives more from collective actions than from collective intention. The realized strategy (pattern in actions) to form exactly as intended 3 Conditions:
1) precise intentions in the organization
2) common to virtually all the actors
3) collective intentions realized exactly as intended The Planned Strategy Definition: Leaders at the center of authority formulate their intentions as precisely as possible and then strive for their implementation with minimum distortion Of Strategies, Deliberate and Emergent Developed by Henry Mintzberg and James A. Waters in 1985 What is a Strategic Management? 1) Precise intentions in the organization -intentions are articulated in a relatively concrete level of detail

-therefore no doubt about what was desired before actions are taken 2) Common to virtually all the actors -shared as their own or else accepted from leaders
-in response to some sort of controls
-collective action 3) Collective intentions realized exactly as intended -no external force (market, technological, political, etc.) could have interfered with them
-environment must have been either perfectly predictable, totally benign, or else under the full control of the organization Disadvantages: -three conditions create a tall order, therefore unlikely to find any perfectly deliberate strategies in organizations, although some do come close in some dimensions Disadvantages: -as rare as the pure deliberate strategy Strategy: A plan chosen to actualize a desired future
The most efficient and effective method to reach a goal
Also called as “pattern in a stream of decisions” Strategic Management: An analysis of the initiatives associated with customers and competitors and the organization itself to provide the basis for maintaining optimum management practices A set of consistent actions that form an unintended pattern that was not initially anticipated or intended in the initial planning phase Condition:-there MUST be order (consistency in action over time) in the absence of intention Alignment of
corporate policies Strategic priorities planned, entrepreneurial, ideological, umbrella, process, unconnected, consensus and imposed strategy The purely deliberate strategy and purely emergent strategy are two poles of a continuum of observable strategies
There are 8 different strategies between these two poles Requirements: -environment has to be extremely stable
-organization has to be able to predict it with great accuracy Organization may spend years considering actions but once the act has been decided, organization would commit firmly. Example: The Entrepreneurial Strategy Definition: One individual in personal control of an organization is able to impose his or her vision of direction on it Compared to the planned strategy, the intentions of the entrepreneurial strategy are harder to identify and are less specific. Disadvantages: -strategy comes from a single person, therefore there can be a sudden change and reformulation is not unusual Deliberate? Intentions do exist but only from one individual. Therefore it is difficult to identify and less specific. Emergent? -there is room for adaptation
-leader's vision is personal therefore it can be changed completely Advantages: -flexible (at the expense of specificity and articulation of intentions) Recap: Two Major Strategies: 1) Pure Deliberate Strategy
2) Pure Emergent Strategy 8 Strategies that fall along this continuum: 1) Planned Strategy
2) Entrepreneurial Strategy
3) Ideological Strategy
4) Umbrella Strategy 5) Process Strategy
6) Unconnected Strategies
7) Consensus Strategy
8) Imposed Strategies 1) Planned Strategy
-strategies originate in formal plans

2) Entrepreneurial Strategy
-strategies originate in central vision

3) Ideological Strategy
-strategies originate in shared beliefs

4) Umbrella Strategy
-strategies originate in constraints
5) Process Strategy
-strategies originate in process

6) Unconnected Strategy
-strategies originate in enclaves

7) Consensus Strategy
-strategies originate in consensus

8) Imposed Strategy
-strategies originate in environment THE END! QUIZ TIME !!!!! Who developed the strategies? Which 2 strategies make up the two poles? How many strategies are there in total? Name one strategy and give an example for it. What order do the strategies go in? Porter or Mintzberg? "Whose view of Strategy is the MOST relevant today?" - Article from FORBES Porter [more of deliberate approach]
Deliberate strategy worked well BACK in the 80s and 90s, when the past was helpful to predict the future.

Mintzberg [more of emergent approach]
Emergent strategy is a set of actions, or behaviour, consistent over time, "a realized pattern that was not expressly intended" in original planning. It implies an organization is learning what works in practice. BETTER for today Why Mintzberg's is Better? The planning school no longer has the street cred it once had. It is because we cannot control the variables that factor into business decisions that Minztberg's emergent strategy is so useful.
Planning things [Porter's strategy] are still relevant BUT strategic flexibility is what a business world is looking for. In the article, why the writer stated that the Mintzberg's strategy works better for today?
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