Processual approach to strategy. Processual Strategy 2022-12-11
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A processual approach to strategy refers to a way of thinking about and implementing business strategy that focuses on the processes and actions taken within an organization, rather than on predetermined goals or objectives. This approach emphasizes the importance of adaptability and flexibility in the face of changing circumstances, and suggests that strategy should be developed and implemented as a continuous process rather than a one-time event.
One key aspect of the processual approach is the idea that strategy is not something that can be fully planned in advance. Instead, it is a process of ongoing experimentation and learning, in which an organization adapts and adjusts its actions in response to changing circumstances. This approach recognizes that the business environment is constantly changing, and that an organization must be able to adapt and respond to these changes in order to remain competitive.
Another important aspect of the processual approach is the idea that strategy should be developed and implemented at all levels of an organization. This means that employees at all levels should be involved in the strategy-making process, and that strategies should be aligned with the values and goals of the organization as a whole. This can help ensure that strategies are supported by all levels of the organization, and that they are implemented effectively.
One of the key benefits of the processual approach is that it allows organizations to be more agile and responsive to change. By focusing on processes rather than predetermined goals, organizations can more easily adapt to changes in the business environment and take advantage of new opportunities as they arise. This can help organizations stay ahead of the competition and achieve long-term success.
Another benefit of the processual approach is that it encourages collaboration and teamwork within an organization. By involving employees at all levels in the strategy-making process, organizations can tap into the expertise and ideas of all their employees, which can lead to better decision-making and more effective strategies.
Overall, the processual approach to strategy offers a flexible and adaptable approach to business planning that can help organizations stay competitive and achieve long-term success in an ever-changing business environment. By focusing on processes and continuous learning and adaptation, organizations can more effectively respond to changing circumstances and take advantage of new opportunities as they arise.
The Contribution of Processual and Emergent Perspectives to Strategic Change
Thus complexity reducing strategies destroy the meaningfulness of emergent properties which are seen as being like steam from boiling water, simply a by-product of a system rather than being the essential components that comprise the system. Understanding that strategy formulation does not always occur in a rational-planned manner, owing to complexities in both the external and internal environment, is significant for our understanding of strategic human resource management. This approach is then contrasted with the processual and emergent perspectives that seek to widen management appreciation to include factors beyond the organisation and its immediate environments. He compared the skills required of those involved in the process to those of a traditional craftsperson — traditional skill, dedication, perfection, mastery of detail, sense of involvement and intimacy through experience and commitment. There are two main opportunities in advanced economies.
Strategic change processes: an organization development approach (Chapter 8)
. In short, the Processual approach focuses on internal politics with the key processes are bargaining and influences on psychology. Thus, this research is not only useful for an investigator of strategy to comprehend but it is also essential if we are to understand entrepreneurial strategy as it is practiced in China. It may also be possible that this may not be in the best interests of the organisation to have all of the strategists of one mind. Practice appears to be on a divergent path from theory Collins, 1997. . Emergent strategy The systemic approach This leads us on to the final perspective identified by Whittington 1993, 2001 , the systemic approach.
It is very essential because it leads all the functional arenas of the business. . Another entrepreneurial strategy stressed by these entrepreneurs in this study is that one of the key strategies for their success is being there, being ready and having no preconceived conception of how things may evolve. With this approach, profitability is assumed to be the only goal of business, and the rational-planning approach the means to achieve it. Then I will make these implicit rules become organization policy.
Complexity absorption: a processual strategic approach to corporate entrepreneurship strategy
The main task of planning is to. The strategy is really something you can see that has emerged from the previous actions the firm took; rather than decisions being taken under the guidance of the strategy, the Richard Whittington's Theory And Complications Of Strategic Management Richard Whittington introduced four theories of strategy to explain how people behave and think in real business world and what the projected implications of their various behaviors on strategic management are. Strategy evaluation methods utilised 12. Engagement and confrontation are direct as well as indirect. What factors helped the rapid adoption of Excellence colorants.
The systemic approach suggests that strategy is shaped by the social system within which it operates. Strategies are concerned with the scope of a business, what and where they produce. For this reason, particularly due to cognitive limitations in decision making by individuals, many organisations are adopting an approach that, while focusing on business profitability, acknowledges the dynamic processes acting upon and within the organisation. Thus, students are precluded by time constraints from exposure to the theoretical foundations of change and, consequently, may be discouraged from challenging received wisdom. Processual approach: Strategy is produced in an incremental fashion, as a 'pattern in a stream of decisions'. Words: 1914 - Pages: 8 Premium Essay Cash Flow. Every audit is unique in which all auditors have their own ways of making their plans.
Term Paper: Whittington's Four Generic Approaches to Strategy and Paradoxes Relating to the Business World
In a period of unprecedented volatility, there is mounting concern of how entrepreneurial organizations can respond to an increasingly complex business environment with the advent of the new technologies that have accompanied the emergence of the internationalization of the economy as an exceptional challenge to existing forms of management control at every level of society. Words: 1963 - Pages: 8. Whilst the processual school sees the market as irrationality, systematic one is totally different. The organisation is thus instrumental in the hands of management Collins, 1997; Daft, 1998; Hatch, 1997; Kepner and Tregow, 1986. Similarities and differences of the different schools in analysing Santander 13. The evolutionary approach An alternative view of the strategy-making process is the evolutionary approach.
To be successful or to survive in the evolutionary, processual and systemic approaches, there is perhaps more importance attributed to the firm-specific, resource based view than the classical perspective. Theoretical contributions The paper contributes to both entrepreneurial strategy literature and complexity literature in the following ways: First, complexity theory offer an insightful perspective to study organizational responses to the complex environment e. By plotting his model on two continua of outcomes profit maximisation—pluralistic and processes deliberate —emergent , Whittington 1993, 2001 recognises that the strategy process changes depending upon the context and outcomes. . Darwin noted that more individuals of each species are born than can survive, thus there is a frequently recurring struggle for existence.
Journal of Chinese Philosophy, 30 3—4 , 403—417. . . Strategy evaluation Premium Strategy Strategic planning Evaluation Business Strategy Assignment No Assignment Title 7. Therefore, each subsystem of the business could adapt its requirement from both internal and external.
The industry therefore does seem to have an influence on the performance of the individual firms — the industry specific factors. The material contained in it may only be used for teaching purposes in association with the Business School of the University of South Wales, and with the explicit permission of the authors. Classical approach to strategy is a reductionist and scientific one. A single definition of strategy simply doesn't exist. . The strategy is really something you can see that has emerged from the previous actions the firm took; rather than decisions being taken under the guidance of the strategy, the decisions are taken and when you look back, you can see the decisions took you in this direction. Alfred Chandler 1962 , a business historian, Igor Ansoff 1965 , a theorist, and Alfred Sloan 1963 , President of General Motors, identified these key characteristics of the classical approach in their work and writings.
Assignment Brief Assignment Premium Strategic planning Strategic management Strategy importance of strategy The Importance of Strategy Most corporations would purport to have a well defined strategy which they have developed to take their business forward. Module Aims and Learning Outcomes 3. Yet, can one size fit all? So go to clients to do a pitch that we can do what you need. This very rational approach has advantages where a change in markets and the industry move relatively slowly and where reasonable confidence can be achieved in long-term financial modelling. That is, the firm would have some objectives in mind, assess the external and internal factors that impact on the business, evaluate their options as to how to achieve those objectives given the internal and external assessment it has made, and then implement the best options. Illustrate your answer with examples. Each decision taken is based on what seems like the best thing to do at the time; and really, only by looking back can you see the pattern — the strategy — being followed by the organisation.
