In
your own words and using referenced quotes explain why strategy theories
developed in the last 10 years tend to be quite different from those developed
in the 1960’s.
Classical Approach to Strategy (1960):
The classical view of strategy in which the globe is a firm
hierarchy having a single general who helps in making decisions is related on
the military practice. An intellectual inheritance of economics helps to
balance the military model. Von Neumann & Morgenstern (1944 in Whittington
1993) placed this remarkable figure right at the heart of their idea of strategy
as a complicated ‘game’ of move and counter-move, bluff and counter-bluff,
among competing yet co-dependent businesses. With Smith’s view that ‘each
individual is constant exerting himself to find out the most beneficial
employment of whatever capital he can command’, the vision of individuals in
tandem has created a label of the
manager who pays attention on maximizing return on investment. This strategy
has brought vast confidence in the skill of managers for adopting profit
maximizing strategies throughout coherent long-term planning. Particularly as his books offers an advice on
attain ‘above average industry profits’ , the classical mould has been easily
located by the porters.
Processual Approaches to Strategy (1970) :
The firm which nominates organizations as
association of individuals, each of whom transports their own personal
objectives and cognitive unfairness to the organization is known as a
processual examination of the firm. For
the scholars like Richard Cyert, James March and Herbert Simon, strategy is a
continuing process of negotiation as rational economic man is a fiction and
people are only ‘bounded rational’. Self-conscious messages from the
environment which ultimately forces them on the manager’s concentration has
become the slow adjusting of schedule due to the limitations strategy on which
processual scholars have been quarrelling. Strategies does not only mean to
design and pursue action but it also means to make intelligence of the chaos of
the globe. Therefore, strategies are oftenly ‘emergent’ , their logic has grown
through action and supposed in retrospect, as successive little steps
eventually combine into a pattern (Hartfield & Hamilton, 1997a).
Evolutionary Approaches to Strategy (1980) :
It seems that companies are not being occupied
with the ‘ideal of economic man’. Not only do managers not succeed to locate
output at the supposedly profit-maximizing stage where marginal costs exactly
the same marginal revenue, however most managers lack idea what their marginal
cost and revenue curves are! (Hall & Hitch 1939 in Whittington 1993) Enter
the experts! The economists who are familiar to this business ‘stupidity’ by
charter ‘the markets’ do the ‘thinking’. Within a particular atmosphere,
‘markets’ not managers select the existing strategies through this view of the
globe. According to the strategists who
remain to the evolutionary analysis of competition, survivors may appear to be
the one who have been modifying themselves to the surroundings ( Williamson,
1991). The most successful figure of ‘weeding out inefficiency’ or lack of
adaptation is competition. So, to guarantee healthy industries easy entry into
market is the technique.
Systemic Perspectives on Strategy (1990):
The economic action cannot be placed in a
divide sphere of impersonal financial calculation as of our social
embeddedness, has been argued by Granovetter (1985). Network of social
relations; the state, professions, families helps in fixing the economic
performances. Identifying suitable and reasonable behavior for their member,
both the means and the ends of action are controlled by these networks. So, personal histories that
comprise gender, family position, educational background, religion ethnicity
all outline economic activity. As per the suggestion of this social
constructivist analysis, the model which leads strategy are not cognitive
(Huff, 1990), but cultural. According to Gergen (1994), culture is defined as a
sequence of social systems, effects and is precious by firms, industries and
economies. Whittington (1993) has argued that even if there is increase in
overseas trade and foreign investment, the custom of history and society still
matters. It could be that the awfully notion of ‘strategy’ may be culturally
particular to the situation in the United States in the 1950s and 60s.
The phrase of strategy is facilitated by the
above quotes, and its meaning by the different strategists and how it has
changed from past to present days. Remarkable change or development of strategy
from 1960’s to present time is found. In present days, the mode or approach
that we understand and interpret is much more different than in past
1960’s.there was stable political, legal and economic condition with less
competition to compete in market at that time (1960’s). But the time is
changing nowadays; and its totally different from what it was back in 1960’s.
At present, the customer’s demand are increasing on their particular product or
services so to offer best outcomes to them, the strategists need to be more
innovative and flexible.
There
are differences between strategy theory developed in last ten years and those
developed in 1960’s. These differences can be illustrated by the strategy
theory responses which is enlisted as follows:
Rapid
Adaptation:
At
present, customer’s wants and desires along with technology are advancing one
after another as compared to last decades. It is intelligent to clear that
present date competitive advantage which cannot be attained by the means of
positioning strategy or through unique resources. According to change in
environment, sometimes it is very hard to use habitual or popular tools such as
SWOT analysis since its difficult to understand and to examine the changing
environment or market so, different companies are changing their strategy.
Option
Theory:
Through
examining the competitive rivalry which depends upon the bargaining power of
buyers and suppliers, availability of substitute goods and threat of new
entrants, there is no doubt that the
porters five forces model helped us to identify the position of the firm. With
respect to changing environment concept, perception of a business person,
customers has been changed. Nowadays, company needs to take care of the
environment as well as cope with changing environment surprisingly since it is
observed that there is competition land from flexibility in the organization.
Therefore, in order to make the firms a competitive advantage to the company,
it needs to be more flexible and loyal than before to the customers.
Complexity
Theory:
After
observing the current strategy, it is clearly identified that everything can be
unpredictable. Flexibility would be the key determinant for adapting the
change.
For
example-
Emergent vs. Deliberate
strategy.
Number
2. Module benefits:
1. Since we have understood
different analytical tools like MC Kinsey 7’s Model, SWOT, TOWS matrix, PESTEL,
Change kaleidoscope, Force Field Analysis, Porters Five Forces Model and many
others. So we have been able to understand the nature of business and its problems
as well as to implement the best strategy tools which can handle different
problems effectively and efficiently that relates to the organizations.
2. It is difficult to be a
strategist, so in order to be one, it is essential to become familiar with
interpersonal skills and the interactive skills- presentation skills,
development of creativity and enhanced flexibility has been gained through this
model. We have been able to see the real time scenarios with the help of this
module, it has also helped us to understand the importance of strategies and
their impacts in the business world.
3. In nature, strategy related
jobs are sophisticated. Recently, the importance, nature as well as the sense
and demand of strategy changed rapidly in a positive direction whereas before
it used to be a source for long term planning and decision making. As a result,
the tool that helps us to construct the environmental surrounding, whole
organization plus the firm that facilitates us to adjust the change in addition
to become more flexible is strategy.
4. It contains 30 credits for
our total credit hours.
5. The module (definition,
strategy formation, its implementations and various multi-purpose strategic
approaches) has covered every aspect of strategy. Moreover, the future of
strategy is clearly delivered through this module.
Gaga Case Study
Lady gaga has the ability to shock the people
continuously. She has her own unique and artistic style in doing or saying
anything. She is fresh, unique artist who can carry the artistic features in a
very clever way, thus she has been so successful. She has given justice to
everything she has done, whether its poker face with funk beats, clever lyrics
or videos that are visually stunning or its paparazzi which had silvery metal
suit, polka dotted horse wearing huge purple collar or a maid being hanged with
her boyfriend being poisoned. She made it worth it for her worldwide fans by
resembling sculpture than a fashion even when everything was large, bright and
skimpy. (Jamie Anderson, 2013)Her videos, plots, pop-culture visuals as well as
her brilliant dancing skills with many declaring that she has “revolutionized”
all the music videos with her unique sense of portraying themes has made
millions of people in awe. She is very
talented and has used her strategies by living on her own. In
general, she has been so successful with the help of all current social
networking sites and integration of that with her fashion which has made her an
all-around entity. She is loved in this industry by more than 10 million
Twitter with 30 million Facebook fans.
Some of her major and clever strategies are
given as follows:
1.
Music
It is a fact that her song
always makes an impact on individuals even if it’s the first time you hear it
and her songs are also very impressive. She is skilled in piano which is very
difficult thing to master at and this has impressed some people.
2.
Her fashion sense
She is one of the few
celebrities who have got guts to carry off an unconventional fashion sense. She
is the star who dealt with blood smeared performance and also has wore a ‘meat
dress’.
3.
Philanthropic activities
She has always been in various philanthropic activities.
She has indulged herself in philanthropic activities as being an influential
advocate of LGBT movement and to help in her activities, she holds concerts to
help afflicted and needy people.
4.
Controversies
She has been a controversial person so she has got her
stardom form. She seems too get attention by paparazzi. Thus she has the
capacity to turn it in favor of her star image.
5.
Her love towards her fans
Like every artist, Lady Gaga is also made popular by her
fans. But she sets apart from others because of her love for her fans. In order
to show love for her fans, she has inscribed some words on a tattoo placed on
the arm.
6.
Her tweets
She is very
popular celebrity tweeters on Twitter. She usually tweets to promote her music,
latest albums along with her personal life which has made her fans feel really
close to her.
7.
Earnings
In the list of Hollywood’s highest paid female celebrities,
Forbes magazine ranked Gaga 4th. In the previous year, by way of 106
concerts, she has earned around $62 million. The songs written by her along
with her production are all brilliantly contemporary which her turned her into
a global superstar.
Visibility: Gaga is a famous pop star, whose
first solo “the fame” made 10 million copies of sale and has been still
growing. All over the world she has been well known for her extra ordinary
talents.
Credibility: She is very talented and
hardworking. In business aspect she is a real player whereas in real she is
very passionate person with honest and straight forward nature. Thus she is
determined person which has helped her in success factor.
Expertise: she is multi talented so
technically she is an expert whether it’s piano or performances as well as has
a very clever eye for impressing her audience.
Attractiveness: With her unique fashion sense
or her catchy lyrics, she has been able to easily attract her audience. Thus
her fan base is literally reflected by her attractiveness.
Power: She is a very powerful image in the
music industry. She has shown her talent and expertise and also has sold albums
which strengthened the industry in many ways.
Advices: If I was to advise her on her future
strategy, the analysis I would take on is market analysis and the competitor
analysis, also porter’s five forces model. Then to distinguish her from other I
would use a Competitor analysis. At the end for Gaga’s success
I would do an analysis of KSF. I would ask Gaga to keep up with her
controversial image of hers. She should never question her bizarre impulses to
walk the red carpet with her crazy and funky styles.
References:
Lady Gaga, 2014 http://www.goodreads.com/author/quotes/2945649.Lady_Gaga, [Accessed on january, 2014]
Hans
Haferkamp and Neil J. Smelser (1992), ‘Social Change and Modernity’ Available
at: http://www.ssc.wisc.edu/~jmuniz/Social%20Change%20and%20Modernity.pdf [Accessed on 6th Jan, 2014]
Jamie Anderson, J.R.a.M.K., 2013. London Business School. [Online] Available
at: http://bsr.london.edu/lbs-article/724/index.html [Accessed 5th Jan, 2014].
Johnson,
M., April 15, 2013. ft.com. [Online] Available at:
http://www.ft.com/cms/s/2/da6559ce-a289-11e2-9b70-00144feabdc0.html#axzz2qAOGLZjP
[Accessed 5th Jan,
2014].
M.Parker, j.H.&., 1993.
Postmodernism and Organizations. London: Sage Publications.
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