Organisational Strategy and Decision Making Note

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The prescriptive approach – objectives and main elements defined before strategy commences. Benefit: company logical, analytical approach allows them to devise predictive and pre-emptive strategies from which they can meet new opportunities head on. E.g. In 1995 EasyJet used incredible foresight to introduce low cost flights allowing it to take advantage of a more cost-conscious European Market. B: This app. makes it possible to organize complex activities and exercise a greater degree of control over different business units. E.g. Tesco's planning process resulted in well-defined long-term goals and clear boundaries for its UK core business, retail service, non-food and international sectors. It has succeeded in achieving consistent growth and profit in all of these areas over recent years. B: Strategy formation which places a lot of weight on existing capability strengths is thought to be a secure basis on which a firm should define itself and optimize its position, particularly in times of rapid and turbulent change. E.g. Motorola has successfully met the needs of emerging markets by using its fundamental technological strengths in electronic components to progress from supplying TVs and car radios to offering telecommunications services. But: 1. ~ contains many assumptions those are unsustainable in today's business world. The logical app. implies that strategy development is always deliberate and that strategies are realized according to plan. This is mainly because unpredictable events, such as the introduction of new regulations or technologies, will regularly act to force the original strategy off its course.2. The narrow-minded manner in which it focuses on established areas of business and capabilities can hinder serious transformational change where reinvention is required.3.That the prescriptive model fails to complement modern organizational cultures

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