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Strategic Planning in Profit Oriented Organizations INTRODUCTION The conduct of strategi

The conduct of strategic planning by profitoriented organizations is essential for the longterm viability of such organizations in the contemporary economic environment and in the economic environment projected through 2010. There are a variety of approaches to the development of business strategy. Two strategy topologies of particular interest are those of Robert Miles and Charles Snow (1978) and Michael Porter (1980).

Miles and Snow (1978) envisioned the development of business strategy as primarily the process of selecting a specific product/market domain. Within this context, Miles and Snow (1978) perceived organizations in the roles of (1) defenders, (2) prospectors, (3) analyzers, and (4) reactors. Defenders seek to locate and maintain a secure market niche, while prospectors attempt to capitalize on innovation, analyzers depend largely on a stable product line with carefully selected and limited introductions of new products, and reactors do not adhere to a specific strategy, preferring to react only when environmental pressures cause it to become impossible to do otherwise.

Porter's (1980) topology focused on competitive strategies. In this topology, Porter identified three strategies that organizations may employ to gain a competitive advantage. The first strategy is the maintenance of cost leadership, while the second depends on product differentiation, and the third requires an organizational focus on (1) a specific customer group, (2) a segment of a product line, or (3) a particular geographic market.

For an organization, both the Miles and Snow (1978) topology and the Porter (1980) typology are relevant, and they are not mutually exclusive. Thus, it is important to know how the two topologies interrelate in the development of strategy for an organization. This research investigates the domain selection interrelationships between the Miles and Snow (1978) and the Porter (1980) typologies in the developme...

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Strategic Planning in Profit Oriented Organizations INTRODUCTION The conduct of strategi. (1969, December 31). In LotsofEssays.com. Retrieved 18:52, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1702692.html