Prescriptive & Emergent Strategies

Prescriptive & Emergent Strategies

Prescriptive & Emergent Strategies

Context

Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of ?rms in their external environments (Nag, et.al, 2007, Pp.935). The outcome of successful strategic planning is a competitive advantage, for the profitable growth of the organization. There is little disagreement, as to the outcome of strategic planning; however, there exists some conflict as to how this planning need to be done in today's scenario (Robson, 1997, n.d.).

The two approaches are Prescriptive approach and Emergent approach. The prescriptive approach view considers the process of strategic planning more formal. It considers that the future can be predicted, and decisions can be made for the long term. Setting the direction of the company, and then strict adherence to those decisions by the top management is the only way to achieve success in strategic planning. It ensures the direction of the company is towards its achieving the mission and goals set earlier.

Emergent school of thought, neglects this approach, and contends that today organizations ability to learn and adapt provides the truly sustaining competitive advantage. Merely setting of goals on the basis of assumptions regarding future is inappropriate in today's highly fluctuating environment. Companies should create flexible strategic plans, and then, amend it from time to keep it alive and meaningful. It takes tactful approach to exploit the opportunities tin the environment.

Emergent approach to strategic planning is also criticized for making the strategic planning a short term activity. Which can confuse the employees, eat up resources of the firm and create ambiguity in the mission of the organization.

This essay presents the two approaches and highlights their merits and demerits. Presents examples of firms following such approaches and results they obtained.

Discussion

The central aim of strategic planning is to achieve a competitive advantage for higher profits. The strategic plan is meant to create a strategic fit between the firm's resources and opportunities. The business environment is very dynamic, and company needs to adapt to changing competitive environment for survival and growth. The focus of a strategic plan is on medium to long-term operations of a business, which means the time period of three, five or even up to ten years.

The strategy is actually the basic pillar on which business plan is established. In order to add another business within the current business, the strategy behind the new business must be in line with the overall strategy of exiting business. The marketing strategy is either made implicit in the strategic plan or an explicit subsection of it.

All businesses have a strategy whether in implicit or explicit form. The simplest strategy of a business is the rationale behind doing the business. However, in a large organization, it has become a detailed formal process with a specialized department for it. Sometime strategy is made a part of ...