...“Crafting Strategy” (Mintzberg, 1987) Positioning in the Field of Strategy “…I believe the problem often lies one step beyond, in the distinction we make between formulation and implementation, the common assumption that thought must be independent of (and precede) action.” (Mintzberg, 1987) The above quotation, taken from Henry Mintzberg’s “Crafting Strategy”, concisely outlines one of the most prominent debates in the field of strategy over the last fifty years. Although the field is heavily fragmented - a feature highlighted by Mintzberg’ et al.’s “Ten Schools of Thought” model (1998) – it can be reduced into the two key approaches implicit above: the prescriptive, or Planning School, and the descriptive, or Learning School. The prescriptive approach describes strategy formation as a deliberate, conscious process of thought that comes prior to implementation. Most authors from this school define strategy as the establishment of a company’s future position [see, for example, Andrews, 1965; Ansoff, 1965, Byers, 1985; Chandler, 1962], illustrating how planning is a cornerstone of the prescriptive approach to strategic management. Serving as a juxtaposition, the descriptive approach suggests that strategies will emerge through the process of trial-and-error and that intention need not precede action. Mintzberg and Waters (1985) argue that the “open, flexible and responsive” nature of emergent strategies is especially important during crises when the environment...
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...appraises and controls the industries and the business in which the company is involved; evaluates its rivals and sets organizational purpose and strategies to address with all existing and potential competitors; and then reevaluates each strategy after a definite time period to determine how it has been applied and whether it has thrived or needs replacement by a new strategy to meet changed environments, new rivals or new political, economical social, technological environment. Strategic management is very important and broader area than any specific functional management area. It determines whether an organization excels, survives, or dies. It is very essential because it leads all the functional arenas of the business. It is generally believed that businesses, which develop formal strategic management systems, have a greater possibility of success than those, which do not. (Jauch and Glueck,1988,) Strategic management helps organizations predict future problems and opportunities. It endows with crystal-clear vision, mission, objectives, and strategies that guide organization into the secured future. Strategic management is a stream of decisions and actions. (Jauch and Glueck,1988). It is a procedure by which top-level management decides and does for the success of the company. It helps to determine the best possible strategy so that company could win the game in competitive business environment. Thus, strategic management is a procedure where a strategist finds where...
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...the importance, but all organizations must need to achieve the corporation’s goal effectively and efficiently. Most corporations must need people who manage the organization, and then managers have a different role to support a corporations’ competitiveness. According to Gilbert (1996) “Making broad strategy for a company is one of the major tasks of general managers. This involves setting long-term directions and goals, and allocating resources, so that the directions can be pursued, and the goals can be reached” (p.13) To improve corporation’s competitiveness, the manager in the functional areas takes some roles. There are two structures of the role of manager. One is the management function from Henri Fayol, and the other one is the managerial roles from Mintzberg. Henri Fayol’s the four functions of management are planning, organizing, leading and controlling and Mnitzberg’s the roles of a manager divide by interpersonal relationship, the transfer of information, and making decision. (Robbins & Coulter, 2012). All managers in the organizations like Marketing, R&D, Manufacturing, Human Resources, and Finance must have both structures. They make plans of goal and strategies to succeed, and organizing. Then they lead and control their members to accomplish goals. Furthermore, they have different roles divided their working part or level of positions. Managers are the leader and the figurehead of the organization and a mainstay in between members of the organization. Also...
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...first understand Mintzberg’s (1987) strategy distinctions between planning strategy and crafting strategy. Planning strategies being those which are internally defined and implemented, similar to that of a blueprint (Findley, 1988). Crafting strategy is a continuous form of strategy which incorporates the learning process into the decision making. From this it is important to recognise the definition of strategy according to Mintzberg who bases his assumptions on “a pattern in a stream of decisions” (Mintzberg & Waters, 1985, p. 259). Mintzberg (1987) had found that “an organisation can have a pattern without knowing it, let alone making it explicit”. The article ‘Crafting strategy’ by Mintzberg (1988) represents the argument that strategy is deductive and not inductive, strategist recognise patterns and do not plan. To find a company strategy you can look at the interplay of the environment as well as the leadership and organisation of the company, Action leads to change and innovation, this in turn leads to strategy. Mintzberg (1987) sets out to compare the lone work of a potter to that of an organisation. Using this potter as a metaphor Mintzberg aims to demonstrate that both face the same strategic issues of being able to know their own capabilities well enough in order to formulate a ‘strategic direction’ through crafting. To integrate the article into the wider debate of Strategy we must look at the two key schools of thought, that of deliberate strategy (planning) and...
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...‘Crafting Strategy’ by Henry Mintzberg Strategy is a topic that receives a considerable amount of focus in both business schools and industry throughout the world (Knight and Mueller, 2004). A key debate in the field strategy is how exactly strategy is formulated. In ‘Crafting Strategy’ Mintzberg (1987) examines the distinctions between planning strategy and crafting strategy. This literature review will discuss Mintzberg’s argument and approach in the wider debate of strategy, followed by an analysis of the articles strengths and weaknesses. The position of the article in the wider debate about processes of strategy Whittington (2001) categorised strategy in to four principle approaches; Classical, evolutionary, processual and systematic. Mintzberg challenged traditional classical planning on a number of levels; Classicalist believed that the world was stable enough that strategist could accurately forecast through a rational process of deliberate calculation and analysis and that they are best created by senior management away from the operating environment (Whittington, 2001). Prescriptive strategic management literature indicates there is “a correlation between organizational performance and strategic planning, although empirical evidence is less than conclusive in this respect (Glaister and Falshaw, 1999; McKiernan and Morris, 1994; Pearce II et al., 1987; Rigby, 2001),” (Gunn and Williams, 2007, p206). Mintzberg believes that the term ‘planning strategy’ causes people...
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...Chapter 1 – Indented and Emergent Strategies We have 5Ps as Plan, Ploy, Pattern, Position (Michal Porter) and Perspective. But the most contended issue is the concept of Intended/ Emergent Strategy. According to the Mintzberg’s model, a company’s realized strategy is the product of any intended strategies (those that are planed) that are put into action and of any emergent strategies (those that are not planned). In Mintzberg’s view, emergent strategies are the unplanned response to unforeseen circumstances. They often arise from autonomous action by individual managers deep within the organization (such as Richard Drew at 3M) or from serendipitous event (such as those that led Nokia into mobile phones). They are not the product of format top-down planning mechanisms. Mintzberg maintains that emergent strategies are often successful and may be more appropriate than indented strategies. Pascale describes how this was the case for the entry of Honda Motor into the USM motorcycles market. When Honda executives arrived in Los Angeles from Japan in 1959 to establish a US subsidiary, their original aim (intended strategy) was to focus on selling 250-cc machines to confirmed motorcycle enthusiasts, rather than 50-cc Honda Cubs, which were a big hit in Japan. Their instincts told them that the Honda 50s were not suitable for the US markets, where everything was bigger and more luxurious than in Japan. Sales of the 250-cc bikes were sluggish, however, and the bikes were plagued by...
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...to reinforce the management functions. Mintzberg views the management roles in three groups, interpersonal informational and decisional, which embraces his ten management roles. His model is more focused on the characteristics of the managerial work rather than simply the functions of management. Despite the differences between the classical and contemporary model, the many parallels that intrinsically exist between the works inevitably reaffirm and solidify the other concept. Overall, while Mintzberg’s model is useful in illuminating the modern day nature of managerial work, it appears to be less constructive than the classical approach in achieving understanding of how organisations functions and what managers do. The classical approach of the five elements of Fayol and his principles, remains “valid and in use today,” suggests Fells in his article “Fayol stands the test of time,” those are planning, organising, leading, controlling and coordinating. Planning involves defining goals, establishing strategies for achieving those goals and developing plans. Organising is determining what tasks are to be done and who reports to whom and where decisions are to be made. While controlling and coordinating involves monitoring actual performance, comparing standards and taking action if necessary. Leading involves motivating and influencing individuals or teams as they work or dealing in any way with employee ‘s behaviour issues. Furthermore, Archer (1990) argues Fayols model “begun...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/1751-1348.htm Henri Fayol, practitioner and theoretician – revered and reviled Mildred Golden Pryor and Sonia Taneja Department of Marketing and Management, Texas A&M University-Commerce, Commerce, Texas, USA Abstract Purpose – Fayol’s theories were the original foundation for management as a discipline and as a profession. Also Fayol was the first to advocate management education. Yet he has critics who revile him (or at least disparage his work) as well as followers who respect and revere him. This paper intends to enlighten today’s practitioners and academicians about the relevance and value of Fayol’s theories today. Design/methodology/approach – The paper addresses Fayol’s contributions as well as the disparagement and the reverence. It compares Fayol’s work with that of Follett, Mintzberg, Taylor, and Porter. In addition, it demonstrates the original and current interpretation and application of his theories. Finally, it indicates the alignment of Fayol’s theories with strategic leadership and management. Findings – Fayol’s theories are valuable and relevant for organizational leaders because Fayol was a practitioner who documented theories that worked best for him and his co-workers. While there are those who criticize Fayol’s theories, there are many others who respect them and find them useful as academicians and as practitioners. The theory of management functions aligns...
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...| | |Page No. | | |STRATEGIC MANAGEMENT-DEFINITION……………….… |2 | | |MINTZBERG’S DEFINITION OF STRATEGY……………….. |3 | | |KEY ISSUES OF STRATEGIC MANAGEMENT……………… |6 | | |PORTER’S THINKING…………………………………………. |7 | | |PORTER’S FIVE FORCES………………………………………. |9 | | |THE NEW STRATEGIC WAVE…………………………..…..… |12 | | |HENRY MINTZBERG' S 5 Ps FOR STRATEGY………..…… |17 | | |IMPORTANCE OF STRATEGY IN ORGANISATION………… |19 | | |THE STRATEGIC PLANNING PROCESS.................................... |20 | | |STRATEGIC MANAGEMENT: Failure...
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...organisation is run, requires for strong managerial expertise and leadership. The ability to realistically plan, organise resources effectively and efficiently, co-ordinate and control resources in this every changing, complex, dynamic environment is at the forefront of quality managerial practices. Good management has demonstrated itself more important than ever, with the peak Global Financial crisis in 2008/2009 proving that the historical theory’s and innovations in managerial practices are absolutely paramount to thriving economic prosperity. It is through the functions, approaches included in the literature of Henri Fayol’s 1949 English translated General and Industrial Management, Henry Mintzberg’s studies into managerial roles and German sociologist and economist Max Weber’s concept of bureaucracy that acknowledge and promote guidelines, expectations and accountability from managers. The extent, to which modern day management upholds and applies all three of these historical studies/ theories into modern management practices will be basis for coherent, strong, fully functioning and ultimately successful...
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...MULTIPLE CHOICE QUESTIONS (36) 50% of Total Marks Choose the best answer from the responses listed Use the Answer Sheet provided 1. According to the Fundamentals of Strategy textbook, which of the following elements is not found in strategy statements a) Mission b) Experience c) Advantage d) Vision e) Scope 2. A Strategic Business Unit (SBU) is a part of an organisation for which there is a) Senior management with strong links to corporate HQ b) Specific goods/services that are sold to other SBUs in the corporation c) Integrated operations with other SBUs in the corporation d) Close links with other companies in the industry value network e) A distinct external market for goods/services different from other SBUs 3. Which of the following statements in relation to Mintzberg’s 5 P’s for Strategy is not true a) As plan, strategy tries to establish direction for organisations b) As ploy, strategy involves exploiting competences c) As pattern, strategy focuses on consistency in action and behaviour d) As position, strategy matches an organisation to its environment e) As perspective, strategy concerns how intentions become shared 4. According to Gene Browne of the City Bin Company, mediocrity results from a) Not trying hard enough b) Focusing on only one part of the value chain c) Trying to be a jack of all trades d) The type of industry you are in e) Operating in a cyclical business 2 5. Scenarios are plausible alternative views of how the business environment...
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...Planning strategy was once predominant in the 1960s and 1970s. Although it faltered in the 1980s and 1990s, it still continues to be a significant influence today. While the fact that many industries continued to experience turbulent was the main reason of the fall of planning strategy, it also accounted for the rise of the emergent strategy. Entrepreneurial organizations increasingly rely on emergent strategy development rather than formal planning processes (Fletcher & Harris, 2002). This literature review will attempt to discuss the debate over the prescriptive and emergent approaches for developing strategy followed by the main strengths and weaknesses of the article. The article uses experiences of a craftsman and a potter to develop an argument that the crafting image better captures the process by which effective strategies come to be than the formal planning (Mintzberg, 1987). Mintzberg stresses a strategy is actualized through the processes of learning, negotiation, and proposes that the distinction between planning and implementation is untenable (Mintzberg, 1990). “Openness of emergent strategy enables management to act before everything is fully understood-to respond to an evolving reality rather than having to focus on a stable fantasy.” (Mintzberg, Waters 1985). Emergent strategy is therefore described as a trial and error approach which allows amendments, rather than one fix objective, as in prescriptive strategy (Downs et al 2003). Mintzberg thus believes...
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...MFG 1010 Assignment 1 Managers are required to perform many management roles in the workplace. Over the course of time, people have looked into an in depth analysis of management to come up with a number of theories and approaches to better understand it, so as to enable them to use it effectively in running their organisations. This essay will firstly explain in relation to CEO Sue Morphet the three specific categorization schemes that have been developed through time that describe what managers do. (Robbins, Bergman, Stagg and Coulter 2012, p.13). These specific categories are the functions, roles and skills of managers. It will then go on to discuss what managerial functions, roles, and skills CEO Sue Morphet would have to undertake in order to overcome to overcome the challenges posed by the negative publicity surrounding her organisation’s decision to move jobs overseas. This will be followed by how these approaches may be used effectively by managers to achieve desired outcomes for organizations. The essay will then be ended off with a conclusion. Management is seen as a process, “Planning, organising, leading and controlling of human and other resources to achieve organizational goals effectively and efficiently” (Waddell, Jones and George 2011, p.5). In other words management is getting a group of people together and organising them in a way to maintain the targeted set of goals by having low resources wastage and high goal attainment. Robbins et al., (2012)...
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...Glyndwr UNIVERSITY ASSIGNMENT FRONT SHEET Student Name: Certification: I certify that the whole of this work is the result of my individual effort and that all quotations from books, periodicals etc. have been acknowledged. |Student Signature: | |Date: | Student Registration Number: Student email address: |Programme : BA (Hons) International Tourism Management HH | |Year/Level : Level 5 | |Academic Year : 2014 | |Semester : | |Module title : Strategic Management for Tourism |Assignment | |Module code: BUS 518 | |Word guide: 3500 | |Percentage Weighting of this assignment for the module: 100% | |Issue date : | Return date : 31St March 2014 | |Lecturer : Gopinath Vedula | Second...
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...Decision Making: It’s Not What You Think Decision Making: It’s Not What You Think Henry Mintzberg, MIT Sloan Management Review (2001) This essay’s purpose is to summarize Henry Mintzberg’s and Frances Westley’s article about decision making and possible approach methods that individuals and organization can choose to be used in problem solving depending on the nature of the issue. The first part will sum up the main ideas of the article, including main theories and practical advises that the authors are recommending. The second part of the essay will present some criticism towards the article and its theoretical framework and arguments. Main ideas and a summary of the theory Decision Making is a traditional area of interest in every business school and company. How are decisions actually made? Are they rational or just products of individuals’ personal opinions? Should they even be based on what is called as rational thinking? Henry Mintzberg and Frances Westley tried to tackle this problem of how decisions should be made in their essay Decision Making: It’s Not What You Think, published in MIT Sloan Management Review (2001). They challenge the traditional approach of logical problems followed by step-by-step solutions. The researchers argue that there are a whole bunch of different types of problems in need of different approaches. The common type of decision making follows a clear pattern. First step would be defining the problem. Secondly, one needs to diagnose the...
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