Model: A process of conception
Approach: Formulates clear and unique strategies based on matching internal and external situations.
Basis: Architecture as a metaphor, order, reduced ambiguity.
Contributions:
Useful in relatively stable environments.
Supports strong and visionary leadership.
Limitations:
Simplification may distort reality.
Bypasses learning; inflexible in fast-changing environments.
High risk of resistance from personnel.
Typical Tools: SWOT Analysis, Ashridge Mission Model.
Model: A formal process
Approach: Rigorous steps from analysis to execution of strategy.
Basis: Urban planning, system theory, cybernetics.
Contributions:
Provides clear direction and enables resource allocation.
Facilitates control.
Limitations:
Can become too static.
Risks groupthink and difficulty in predicting outcomes.
Relies on top management's isolated creation of strategy.
Typical Tools: Theory of Mechanistic and Organic Systems, Parenting Styles, Levers of Control, Scenario Planning.
Model: An analytical process
Approach: Contextualizes business within its industry and aims to enhance strategic positioning.
Basis: Industrial organization and military strategy.
Contributions:
Treats strategic management as a science.
Provides systematic content for strategy development.
Limitations:
Neglects power dynamics, cultural aspects, social elements.
Biased towards large firms.
Primarily number-oriented.
Typical Tools: Competitive Advantage, Five Forces Analysis, Value Chain, BCG Matrix, Game Theory, The Art of War (Sun Tzu).
Model: A visionary process
Approach: Relies on intuition and experience from charismatic leaders.
Basis: Economics.
Contributions:
A cohesive vision helps organizations navigate challenges.
Deliberate on broad lines but remains flexible in details.
Limitations:
Risk of missing potential developments or dangers due to rigid courses.
Identifying the right leader is crucial and challenging.
Model: A mental process
Approach: Analyzes how strategists perceive patterns and process information.
Basis: Psychology.
Contributions:
Highlights the cognitive process that leads to strategy formation.
Stresses creativity in strategy.
Limitations:
Limited practicality beyond conceptual frameworks.
Ineffective for broad collective strategy processes.
Typical Tools: Whole Brain Model, Johari Window, Groupthink, Cognitive Bias, Myers-Briggs Type Indicator.
Model: An emergent process
Approach: Focuses on learning from experiences over time for strategy development.
Basis: Education and learning theory.
Contributions:
Provides a solution for complexity and unpredictability in strategy formation.
Allows for multi-participant learning beyond just leadership.
Limitations:
Potential to result in lack of coherent strategy during crises.
Costs associated with learning and not useful in stable conditions.
Typical Tools: Organisational Learning Framework, Knowledge Management, SECI Model.
Model: A process of negotiation
Approach: Strategy is developed through negotiation among power holders.
Basis: Political Science.
Contributions:
Facilitates debate on issues.
Can break through obstacles to change.
Limitations:
Involves divisive politics and energy wastage.
Overemphasizes the role of power in strategy.
Typical Tools: Bases of Social Power, Power Distance, Stakeholder Value Perspective, Core Group Theory, Force Field Analysis, Stakeholder Mapping.
Model: A collective process
Approach: Involves various organizational groups in strategy formation.
Basis: Anthropology.
Contributions:
Emphasizes the role of social processes and values in strategy formation.
Helpful in managing resistance to change, especially in mergers.
Limitations:
Can justify the status quo; may lack clear direction.
Typical Tools: Appreciative Inquiry, Cultural Dimensions, Cultural Intelligence, Ashridge Mission Model.
Model: A reactive process
Approach: Strategy is formed in response to external environmental challenges.
Basis: Biology.
Contributions:
Assigns a key role to the environment in strategy formation.
Limitations:
Often vague and aggregated dimension of environment.
Denies strategic choice for organizations; considered unrealistic.
Typical Tools: Contingency Theory, Situational Leadership.
Model: A process of transformation
Approach: Integrates strategy and organizational structure, evolving over time.
Basis: Contextual organizational development.
Contributions:
Sees strategy formation as adaptable to context; recognizes the need for stability and occasional transformation.
Limitations:
Configuration descriptions may distort reality.
Many interpretations are possible; reality not limited to fixed configurations.
Typical Tools: Organisational Configurations, Chaos Theory, Catastrophe Theory, Disruptive Innovations.