Strategy Schools Essay

474 Words2 Pages
It is the work of Mintzberg & Lampel (1998) that introduced the ten schools of strategy of which there are three groups. Of these groups do the prescriptive schools comprise the design, planning and position schools? The prescriptive approach deals with a strategy that is deliberate and well planned which can be translated to an intentional act. We understand from that definition that in this school of strategy the organization is dealing with extensive planning prior to action; however that is not to say that when warranted the organization may react to the unexpected. The advantages of the prescriptive approach are, a complete overview of the organization, the possibility of making a comparison with definite goals, and the possibility for the organization to monitor the agree plan as it is implemented, so that it can evaluate the progress, So as each school deals with some type of planning a plan is essential and implementation is needed in order to dictate which are the steps to follow by the organization and its members. The two schools of strategy presented here are, the positioning school, which is the strategy formation as an analytical process which helps identify the organizations position in the marketplace, and the entrepreneurial school which is the strategy of formation as a visionary process The positioning school is a formal yet rational process run or lead by the CEO and has the function of strategy formation. The positioning school has been totally influence by Michael Porter Competitive Strategy and Advantage, Porter (1996). Of the things we look for from the five forces are as follows • Threat of new entrants • Supplier bargaining power • Customer bargaining power • Treat of substitutes • Number of competitors By undertaking one of these strategies the organization can improve its competitive positioning within the industry overall
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