Compare and contrast
conventional strategic planning concepts with those of strategic intent and
skill-based strategic thinking. Explain how the differences in these concepts can
lead to better business strategy practice.
Strategic planning
concerns analysis - establishing and formalizing systems and procedures.
Strategic planning, is the systematic and logical application of strategies. It
covers a broad range of management approaches including development and
implementation of an organizational strategic plan. Evident in both approaches
is a clear link between leadership and strategic management.
Strategic planning
is often used to create a solution to a specific problem. For example,
restaurants that have great nighttime business but no volume during the day
would benefit from a strategic plan specifically focused on increasing daytime
business.
Strategic intent is a
high level statement usually incorporates stretch targets, which force
companies to compete in innovative ways which design the desirable future.
Strategic intent implies a sizable stretch for an organization. Capabilities of
the organization can be achieved through the strategic intent. The Uniqueness
and the innovation makes strategy intent come to life very effectively
important for employees and they can understand and believe according to it.
This forces the organization to be more inventive, to make the most of limited
resources. To achieve a strategic intent, a company must usually take on
larger, better-financed competitors. That means carefully managing competitive
engagements so that scarce resources are conserved.
Managers cannot do that
simply by playing the same game better by making marginal improvements to
competitors' technology and business practices. Instead, they must change the
game in ways that disadvantage incumbents like devising novel approaches to
market entry, advantage building, and competitive warfare. For smart
competitors, the goal is not competitive imitation but competitive innovation,
the art of containing competitive risks within manageable proportions.
Skill based strategic
thinking is an individual thinking activity that benefits organizations. Its
purpose is to discover competitive strategies to position the organization
significantly differently from the present. Thinking strategically is not the
same as preparing a strategic plan, which details tactics to be taken to
achieve goals and objectives. Strategic thinking is thinking that contributes
to broad, general, overarching concepts that focus the future direction of an
organization based on anticipated environmental conditions.
Strategic thinking takes
a holistic or systems view. It requires an orientation to the whole, rather than
a focus on just part of the whole. Strategic thinking positions strategy
formulation and implementation as interactive processes rather than as
sequential and systematic activities evident in traditional organizational
planning processes. Strategic thinking focuses on intent. Strategic
thinking involves purpose and has a definite direction. It also unfolds in a
process of discovery or learning which takes time to complete, if it is ever
complete.
b.Explain the relationships between business models, business strategies,
and strategic intent and skill-based strategic thinking. Include an explanation
of how these concepts can help avoid myopic business strategy development.
Business Model is one of
the most important aspect of the business. It is mostly discussed but less
understood, it's quite simple. Every Business have their defined and
distinguished model in different ways. So as to generate the revenue from the
earning or making profit from operation business models are created. It
includes the functions as well as the components of the business with revenue
and the profit it will earn from it. Business. It varies from that of business
nature, its operation and its function.
Business Strategies is
the a set of rules that are made by any organization to achieve desired ends
and objectives. Its simply long term goal or planning. It cover mostly 3-5
year's time frame. Business strategy is mostly concerned with business
activities and its scope. Like What to produce, where to produce, for whom to
produce are some of the actitivities that business strategies seeks for.
Business strategies are of two types.
a.)Generic Strategy
b.)Competitive Strategy
Generic Strategy makes
strategy for growth , development, operation and on what you do best
where as Competitive Strategy helps to gain competitive advantage from rivals.
It provides how to get market.
Strategic intent is a
high level statement usually incorporates stretch targets, which force
companies to compete in innovative ways which design the desirable future.
Strategic intent implies a sizable stretch for an organization. Capabilities of
the organization can be achieved through the strategic intent. The Uniqueness
and the innovation makes strategy intent come to life very effectively
important for employees and they can understand and believe according to it.
This forces the organization to be more inventive, to make the most of limited
resources. To achieve a strategic intent, a company must usually take on
larger, better-financed competitors. That means carefully managing competitive
engagements so that scarce resources are conserved.
Skill based strategic
thinking is an individual thinking activity that benefits organizations. Its
purpose is to discover competitive strategies to position the organization
significantly differently from the present. Thinking strategically is not the
same as preparing a strategic plan, which details tactics to be taken to
achieve goals and objectives. Strategic thinking is thinking that contributes
to broad, general, overarching concepts that focus the future direction of an
organization based on anticipated environmental conditions.
Strategic thinking takes
a holistic or systems view. It requires an orientation to the whole, rather
than a focus on just part of the whole. Strategic thinking positions
strategy formulation and implementation as interactive processes rather than as
sequential and systematic activities evident in traditional organizational
planning processes. Strategic thinking helps to make it in a systematic and
effective way to operate and get the work done.
Strategic myopia is a
irregular aspect which has negative aspect in any form of business. The above
concept provides a platform to overcome the problems that occurs in any
business. This strategies can be gained from each and every concept discussed
above. This is mostly effective only when executive level personnel makes and
effective decision regarding to it for the development of the business.
References:
Pearce II, J. &.
((2011)).Strategic Management: Formulation, Implementation, and
Control. McGraw-Hill Irwin.
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