The document discusses different approaches to strategic management and strategy development. It describes three lenses for understanding strategy - as design, experience, and ideas. Most organizations are described as using a rational planning approach to strategy development, but culture and politics also influence strategies. Strategies evolve over time through incremental changes and periods of major transformation. The intended strategy may differ from the realized strategy due to external factors and organizational dynamics. A mixed approach is likely to be most effective.
3. Exhibit 2.2 Patterns of strategy development Continuity Incremental Flux Transformational
4. Exhibit 2.3 Strategic evolution and consolidation . Product launch Acquisition Divestment Overseas expansion Strategies evolve and inform strategic decisions, which in turn consolidate strategic direction Evolving strategic direction Strategic decisions e.g.
5. Exhibit 2.4 Strategy development routes Unrealised strategy Intended strategy 3 5 Planned implementation 1 2 5 Realised strategy Strategy as outcome (of cultural and political processes) Imposed strategy 4
6. Exhibit 2.7 The role of the paradigm in strategy formulation Opportunities and threats Strengths and weaknesses Performance Environmental forces Organisational capabilities THE PARADIGM Strategy
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13. Exhibit 2.6 Cultural frames of reference Functional/ divisional Organisational Professional (or institutional) National (or regional) Industrial/ sector (recipe) The individual
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15. Exhibit 2.5 Incremental change Environmental change Incremental strategic change Time Amount of change
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17. Exhibit 2.8 Phases of strategic decision making Issue awareness Selection of solutions Solution development Issue formulation
18. Exhibit 2.10 The cultural web Control systems Stories Symbols Rituals and routines The Paradigm Power structures Organisational structures
19. Exhibit 2.11 The dynamics of paradigm change Source: Adapted from P. Grinyer and J-C. Spender, Turnaround: Managerial recipes for strategic success , Associated Business Press, 1979, p. 203 The paradigm Development of strategy Implementation Corporate performance Step 1 Tighter control Step 2 Reconstruct or develop new strategy if unsatisfactory Step 3 Abandon paradigm and adopt a new one