Strategic Management

Why is there so much disagreement about what strategy is?

22-Nov-13

Word Count: 3135.

Abstract

Defining strategy in a precise, accurate manner is a troublesome task for managers. We are bombarded by newspaper reports, and media press describing the strategic choices managers make, attempting to align the company’s goals with the mission statement. The disagreement among theorists such as Henry Mintzberg and Richard Whittington rests not with the inherent merit of their theories, models or approaches, or the lack thereof, but in the lack of a uniform understanding of strategy. However, their work has contributed to the merging of our views of strategy, towards a more comprehensive, well-rounded view.

-------------------------------------------------

Contents

1. Introduction

2. Whittington’s Main Approaches – Compared and Contrasted

2.1 Classical Approach

2.2 Processual Approach

2.3 Evolutionary Approach

2.4 Systemic Approach

3. Mintzberg’s Four Schools – Compared and Contrasted with Whittington’s approaches

3.1 The Design School

3.2 The Planning School

3.3 The Positioning School

3.4 The Learning School

4. Conclusion

5. Bibliography

-------------------------------------------------

1. Introduction

Strategy is a varied and far-reaching field of thought and practice which as Magretta (2003) notes, provokes numerous debate. The importance of strategic planning can be traced back to 400 BC. Strategy is derived from the Greek strategos; composed of "stratos" – army and "ago", ancient Greek for leading. (El-Kadi, 2008). We can presume that strategy comes from the top, from an inspirational CEO who leads his troops (subordinates) into battle (the competitive environment) in order to gain victory (e.g market share, new customers).

More recent experts have attempted to accurately define strategy. As Richard Whittington states it is a complex phenomenon - a “contested and imperfectable practice” that has evolved over time....