STRATEGIC MANAGEMENT THEORY

No fewer than ten essential models that have informed the science (and some may say "art") of business strategy were capsulised recently in a Financial Times of London analysis thoughtfully entitled "Strategy, blind men and the elephant."

Its introduction bears quoting at some length, since it will also serve as the thematic guideline for this analysis.

We are all like the blind men and the strategy process is our elephant. Everyone has seized some part or other of the animal and ignored the rest. Consultants have generally gone for the tusks, while academics have preferred to take photo safaris, reducing the animal to a static two dimensions ("Strategy", 1999, 6).

It is apparent that there are many theories concerning how to make effective decisions for the future. What is less apparent is the degrees of success each of the theories generates. This paper shall analyse the 10 major theories that were presented in the above-quoted article, in an attempt to help solve the assigned dilemma, which is, specifically, how a given company in the United Kingdom might solve the following problems.

A. How can the company, using suitable and verifiable (within reason) models, analyse its environment and its capabilities?

B. How can that same company then analyse its strategic choices?

C. What implementation tools are available to the s

. . .
ial new entrants The force of substitute products The force of the competition level According to an article in the Economist, when Porter wrote his seminal 1980 work, business strategy theory was dominated by two conflicting schools. "The Harvard Business School urged companies to adjust to their unique circumstances. The Boston Consulting Group argued that planning can be based on a universal principle, the experience curve: the more a firm knows about a market, the more it can lower its price and increase its market share" ("Professor Porter PHD. . .", 1994, 75). Porter attempted to find a middle ground, one that would bridge these two concepts, and decided to use primary evidence in his analyses to search the answer for a basic question: What separates the winners from the losers in an industry? The answer, he decided, was an awareness factor. The company that had executives that "thought" were more successful than a company that had executives who only "performed." "I favour a set of analytical techniques for developing strategy," Michael Porter, probably the most widely read writer on strategy, wrote in the Economist" (Mintzberg, 1994, 107). The theory of the five forces made a certain amount of sense to Mr. Wa
. . .

Some common words found in the essay are:
Available Walters', Business Review, Five Forces, Bill Gates, Box Day, Director Marketing, Times London, Plan Approved, KMI Walters, SWOT Analysis, five forces, swot analysis, harvard business, key executives, harvard business review, business review, flat organizations, gates 1999, flat organization, director manufacturing, michael porter, porter's five forces, analyse environment capabilities, analyse strategic choices, theory five forces,
Approximate Word count = 3542
Approximate Pages = 14 (250 words per page)

More Essays on STRATEGIC MANAGEMENT THEORY