...A critical review of ‘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...
Words: 1543 - Pages: 7
...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...
Words: 1117 - Pages: 5
...A Critical Review of ‘The Fall and Rise of Strategic Planning’ The arrival of strategic planning had attracted general attention because it implanted in managers’ minds a kind of imperative about the process that was rational and future-oriented (Mintzberg et al, 1998). Nevertheless, Whittington (2001:4) observed, “the plan is bound to get forgotten as circumstances change”. The purpose of this essay is to critically review ‘The Fall and Rise of Strategic Planning’. Firstly, the position of this article in the wider debate will be given followed by its theoretical underpinnings and its main strengths and weaknesses respectively. A conclusion will be drawn on the article’s contribution to the field of business strategy. The article’s position falls in between Whittington’s classical and processual approaches. On one hand, Mintzberg challenged the traditional classical planning and progressed towards the processual approach through identifying three fundamental fallacies. Firstly, classicalists held conventional wisdom that the world was sufficiently stable that today’s planning could forecast and fit market changes (Whittington, 2001). However, Mintzberg (1994:110) took the fresh view that the prediction of discontinuities was “virtually impossible” through questioning Ansoff’s “extraordinary statement”. Hogarth and Makridakis (1981) strengthened that longterm prediction was notoriously imprecise. If Wilbur Wight had anticipated the prevalence of airplanes nowadays...
Words: 2580 - Pages: 11
...A Critical Review Of Crafting Strategy - Henry Mintzberg Table Of Contents Introduction ............................................................................................. 2 Wider Debate Of Strategy .................................................................. 2 Placing The Article In The Wider Debate.................................... 4 Strengths & Weaknesses of the article......................................... 4 Conclusion................................................................................................. 6 References................................................................................................. 7 1 Introduction This essay will critically evaluate the article “Crafting Strategy “ written by Henry Mintzberg. The essay will evaluate the difference between deliberate and emergent strategies and will compare the article against wider debate about processes of strategy. Strengths and weaknesses of the article will be critically reviewed by comparing with previous academic journals and conclusions will be made upon findings. Wider Debate Of Strategy Mintzberg (1984, pp. 69) argues that “strategies can form as well as be formulated” he believes they can emerge due to an ever changing environment” In contrast Porter (1987) takes a more deliberate strategy approach he believes there are 3 types of strategies, low cost, differentiated or focus. “Strategy is the creation of a unique and valuable position involving a different...
Words: 1498 - Pages: 6
...Crafting strategy Henry Mintzberg (1987) Introduction There are many discussions surrounding the theoretical strategies within business environments, each with its own strong points can have the power to be known as the “best approach”. Over time each strategy is stressed upon establishing why it has superiority over the other. The debated topic is Crafting strategy written by Henry Mintzberg (1987a) which discusses and amplifies its core activity that of learning through small theories and concepts. The article will also analysis the nature of the emergent strategy known as crafting strategy, with focus also on its counterpart deliberate strategy. Finally a conclusion will be given with the strengths and weaknesses of the crafting strategy. The debate According to Idenburg (1993a) there are no grounds for arguments between that of deliberate strategy and emergent strategy as their outlooks into the organisation are different. The essence of Henry Mintzberg assertion lies within the learning spectrum while that of deliberate strategy is within planning (Idenburg, 1993b). Importantly Lynch (2003a) acknowledges that there is no appropriate context in which the emergent strategy lies. According to Idenburg (1993c) the learning process approach states that it is impossible to predict the future yet in Ansoff‘s (1991a) critic study of Henry Mintzberg assertion, Mintzberg is quoted saying that “managers need to be sure and cannot act before they are sure” for this reason...
Words: 1731 - Pages: 7
...The Wharton School of the University of Pennsylvania Management 223 - Business Policy & STRATEGY Spring Semester, 1999 Course Description and Syllabus Instructors: Phanish Puranam (PP) & Michael G. Jacobides (MGJ) Office: 2061(PP) /2055(MGJ) SH-DH (Management Dept. Suite) Tel: 898-1231 (PP) / 898-1224 (MGJ) Email: puranam@management.wharton.upenn.edu jacobides@management.wharton.upenn.edu Class Hours: Tuesdays and Thursdays 12:00 to 1:30pm Office Hours: By appointment (PP) Course Overview This course focuses on strategic management and strategic decision making and examines issues central to the long-term and short-term competitive position of the company or division / business unit. Students are placed in the role of key decision-makers or their advisors and asked to solve problems related to the development or maintenance of the competitive advantage of the firm. We start the course by looking at strategy at the level of the business unit, which is the fundamental level for competitive analysis. The perspective taken is of a manager in a given unit with particular assets, capabilities and competitive challenges. We look at industry analysis, examine the sources of competitive advantage, and explore generic strategies: How can we analyze the competitive environment, and what are the basic options for business-unit level strategy? What are the bases of competitive advantage? What is the nature of the value chain? Following...
Words: 5591 - Pages: 23
...assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your students a complete digital solution that allows them to access their materials from any computer. Tegrity Make your classes available anytime, anywhere. With simple, one-click recording, students can search for a word or phrase and be taken to the exact place in your lecture that they need to review. EASY TO USE Learning Management System Integration McGraw-Hill Campus is a...
Words: 219639 - Pages: 879
...between organizational culture and the process of learning to think strategically. A cadre of formal training, developmental activities, and self-directed learning initiatives can provide leaders with the skills to enhance the strategic thinking of those they lead. Keywords strategic thinking, management learning, leadership development, organizational culture “Culture eats strategy for lunch.” This management truism is linked to examples of how strategy failed, acknowledging that actions attempted were inconsistent with the organization’s values, beliefs, and assumptions (Weeks, 2006). The strategy-eating potential of culture has been used as the basis for recommending that leaders initiate large-scale change efforts to align culture with strategy. However, it has long been recognized that culture can also severely restrict the strategy selected to begin with, because of the myopia of shared beliefs among decision makers regarding the organization’s goals, competencies, and environment (Lorsch, 1985). Moreover, shared assumptions about the organization’s core mission can limit not only the strategy but also the vision (Schein, 2004). Thus, one of the...
Words: 6840 - Pages: 28
...- 13 - Uditha Liyanage Abstract Strategy is often confused with planning. The many definitions and delineations of strategy, which highlight one or more aspects of strategy, while ignoring the others, have led to a state of confusion as to what strategy really is. This is evident in the content-analysis of the vision, mission and value statements of a number of companies. Not only were the analysedanalyzed company- - specific statements vague and general, they were also unrelated to one another. Specifically, the espoused values were generic and terminal in nature and unrelated to the tasks and goals at hand. To avoid the confusion in the minds of practitioners, and as reflected in the literature itself, a Strategy Quadrant (content), consisting of Stand, Standing, Shared values and Steps is proposed. The process of developing the 4Ss of strategy is delineated in terms of Mintzberg's "think/see/do first" processes (Strategy Triangle). The context ofcontext of strategy is defined in terms of stability and complexity (Strategy Duality). It is argued that, in complex and unstable contexts, the traditional mode of "think-first" deliberate strategies which set "thinking" apart from "doing" is becoming increasingly ineffective. The unpredictability of complex contexts, in which we operate, leave us with no choice but to be markedly adaptive rather than attempt to be overly prepared. Complex Adaptive Systems (CAS) are the order of the day, and the organization's Standing...
Words: 10911 - Pages: 44
...Constructing Vision with Scenario Planning Terry R. Schumacher Rose-Hulman Institute of Technology, Engineering Management Dept., Terre Haute, IN 47803 USA Abstract Strategic vision is often included as an important component of leadership. Yet there is relatively little guidance offered in the management literature on how to acquire vision. This paper describes practices that facilitate scenario planning so that it becomes a process for creating shared vision. Most of the work on scenarios addresses the mechanics of scenario construction. Those authors adopt a planning perspective and suggest scenario planning can benefit organizations by stimulating creative thinking about the future or improving forecasts. The Scenarios-to-Strategies (S2S) approach is presented, and scenario planning is considered from a communication perspective. Facilitation practices that enhance traditional scenario-building processes are presented which support the social processes of constructing shared vision. These operate on the layer of participants' cognitive processes, to integrate the different participants' views into a unified, shared framework that heightens understanding and commitment. Example scenario planning projects from two industries, electric utilities and software research, are summarized to demonstrate lessons learned that enhance the facilitation of scenarios as a group process. Introduction Scenarios are a commonly used management technique. There is wide variation in the details...
Words: 9260 - Pages: 38
...A Systematic Approach to Writing and Rating Entrepreneurial Business Plans KEVIN HINDLE AND BRENT MAINPRIZE KEVIN HINDLE is a professor of entrepreneurship at the Australian Graduate School of Entrepreneurship, Swinburne University of Technology. Melbourne, Australia. khindle@swin.edu.au BRENT MAINPRIZE is the core professor of entrepreneurship in the Faculty of Management at Royal Roads University in British Columbia, Canada. brent.inainprize@royalroads.ca T here is a small but growing b o d y of research that details many desirable attributes a n d qualities that, at a general level, any entrepreneurial business plan should contain. It is a reasonable proposition that this research, and any principles it may contain, can and should provide the basis for a systematic approach t o b o t h the writing and evaluation of entrepreneurial business plans. Despite this, the majority of entrepreneurial business plan writing and evaluation is unsystematic—if systematic is taken to mean "based o n empirical evidence and developed theory." T h e vast majority of the a b u n d a n t literature on " h o w to write a successful business p l a n " is n o t research-based (Hindle [1997]). T h e espoused criteria of its authors far o u t weigh the formal application of the k n o w n attributes of successful ventures (Hindle and Mainprize [2002]). This article seeks to articulate a research-based system for assessing the c o n t e n t quality of e...
Words: 9124 - Pages: 37
...A CRITIQUE OF PORTER’S COST LEADERSHIP AND DIFFERENTIATION STRATEGIES Y. Datta Ph.D., State University of New York at Buffalo Professor Emeritus College of Business Northern Kentucky University Highland Heights, KY 41099 (USA) 7539, Tiki Av. Cincinnati, OH 45243 USA Tel: (513) 984-1032 [Home] Fax: (513) 984-1032 E-Mail: datta@nku.edu A paper accepted for presentation at the 9th Oxford Business & Economics Conference to be held in Oxford, England, June 22-24. Table of Contents A Critique of Porter’s Cost Leadership and Differentiation Strategies 4 ABSTRACT 4 Key Words 4 INTRODUCTION 5 COST LEADERSHIP STRATEGY 5 Major Reliance on Modern Capital Equipment 7 Relying on the Experience Curve to Underprice Competition Risky 7 A Cost Leader Cannot Ignore Differentiation 8 No Such Thing as a "Commodity": Everything Can Be Differentiated 9 High Market Share a Prior Condition for Cost Leadership? 10 Porter Identifies High Market Share with Cost Leadership Strategy 10 Differentiation--Not Cost Leadership Alone--Behind GM’s and Whirlpool’s Success 11 “Low-Cost” or “Low-Price” Strategy? 12 Thompson and Strickland’s Low-cost Provider Strategy 14 Internal Orientation of Cost Leadership Strategy 14 DIFFERENTIATION STRATEGY 15 Superiority of Differentiation over Cost Leadership Strategy 16 Porter: Differentiation and High Market Share Incompatible 17 Differentiation Compatible with High Market Share--and Low Cost...
Words: 10083 - Pages: 41
...A CRITIQUE OF PORTER’S COST LEADERSHIP AND DIFFERENTIATION STRATEGIES Y. Datta Ph.D., State University of New York at Buffalo Professor Emeritus College of Business Northern Kentucky University Highland Heights, KY 41099 (USA) 7539, Tiki Av. Cincinnati, OH 45243 USA Tel: (513) 984-1032 [Home] Fax: (513) 984-1032 E-Mail: datta@nku.edu A paper accepted for presentation at the 9th Oxford Business & Economics Conference to be held in Oxford, England, June 22-24. Table of Contents A Critique of Porter’s Cost Leadership and Differentiation Strategies 4 ABSTRACT 4 Key Words 4 INTRODUCTION 5 COST LEADERSHIP STRATEGY 5 Major Reliance on Modern Capital Equipment 7 Relying on the Experience Curve to Underprice Competition Risky 7 A Cost Leader Cannot Ignore Differentiation 8 No Such Thing as a "Commodity": Everything Can Be Differentiated 9 High Market Share a Prior Condition for Cost Leadership? 10 Porter Identifies High Market Share with Cost Leadership Strategy 10 Differentiation--Not Cost Leadership Alone--Behind GM’s and Whirlpool’s Success 11 “Low-Cost” or “Low-Price” Strategy? 12 Thompson and Strickland’s Low-cost Provider Strategy 14 Internal Orientation of Cost Leadership Strategy 14 DIFFERENTIATION STRATEGY 15 Superiority of Differentiation over Cost Leadership Strategy 16 Porter: Differentiation and High Market Share Incompatible 17 Differentiation Compatible with High Market Share--and Low Cost...
Words: 10109 - Pages: 41
...THE IMPACT OF ORGANIZATIONAL POLITICS ON THE WORK OF THE INTERNAL HUMAN RESOURCE PROFESSIONAL by Julie A. Paleen Aronow A Research Paper Submitted in Partial Fulfillment of the Requirements for Master of Science Degree in Training and Development Approved: 4 Semester Credits Dr. Kat Lui The Graduate College University of Wisconsin – Stout May, 2004 ii The Graduate School University of Wisconsin – Stout Menomonie, WI 54751 ABSTRACT Aronow Julie Ann Paleen ________________________________________________________________________ (Last Name) (First) (Middle) THE IMPACT OF ORGANIZATIONAL POLITICS ON THE WORK OF THE INTERNAL HUMAN RESOURCE PROFESSIONAL ________________________________________________________________________ (Title) Training and Development Dr. Kat Lui May 2004 65 ________________________________________________________________________ (Graduate Major) (Research Advisor) (Month/Year) (No. of Pages) American Psychological Association, 5th Edition ________________________________________________________________________ (Name of Style Manual Used in this Study) The coveted epicenter for the contemporary human resource professional is partnering with other internal business leaders to fulfill the organization’s mission through sound and ethical business principles and human resource practices. Over three decades, the discipline has matured into one that includes transactional practices along side the more sophisticated organizational development...
Words: 16734 - Pages: 67
...for strategy formulation.What Is Strategic Management?As you already know, the P-O-L-C framework starts with “planning.” You might also know that planning is related to, but not synonymous with, strategic management. Strategic management reflects what a firm is doing to achieve its mission and vision, as seen by its achievement of specific goals and objectives.A more formal definition tells us that the strategic management process “is the process by which a firm manages the formulation and implementation of its strategy.”[196] The strategic management process is “the coordinated means by which an organization achieves its goals and objectives.”[197] Others have described strategy as the pattern of resource allocation choices and organizational arrangements that result from managerial decision making.[198] Planning and strategy formulation sometimes called business planning, or strategic planning, have much in common, since formulation helps determine what the firm should do. Strategy implementation tells managers how they should go about putting the desired strategy into action.The concept of strategy is relevant to all types of organizations, from large, public companies like GE, to religious organizations, to political parties.Strategic Management in the P-O-L-C FrameworkIf vision and mission are the heart and soul of planning (in the P-O-L-C framework), then strategy, particularly strategy formulation, would be the brain. The following figure summarizes where strategy formulation...
Words: 16609 - Pages: 67