1 / 5Definition of strategyStrategy is a pattern of activities that seek to achieve the objectives of the organd adapt its scope, resources and operations to long term environmental changes.Strategic planning4 types of strategic planning: rational top-down approach, emergent strategy, incrementalism and freewheeling opportunism.Characteristics of strategic planning: It considers1. long-term2. the whole org. It gives directions to the whole org and integrates its activities.3. All stakeholders4. How to gain a sustainable competitive advantage in a changing environment.5. It relates the org, its resources and competences to its environment.Rational top-down approach to strategic planning1. set mission2. establish long term objectives3. audit strategic position (internal/external/stakeholder appraisal)4. generate strategic options5. strategic choice6. plan and implement the selected strategy7. review and control (to 2)( continuously comparing actual performance with the plan and providing feedback on results. This feedback can be used to update plans and as a basis for learning through experience)Emergent strategyMintzberg suggests that few of the strategies followed by orgs in the real world are as planned in the rational top-down approach. He believes that the rational top-down approach is an unrealistic way to strategic planning.An emergent strategy is a pattern of action that develops over time in an organization in the absence of a specific mission and goals, or despite a mission and goals. Mintzberg argues that strategy emerges over time as intentions collide with and accommodate a changing environment. 2 / 5Emergent strategies originate in the interaction of the org with its environment and tend to exhibit a type a converge in which ideas and actions from multiple sources integrate into a pattern- this is a form of organizational learning.Mintzberg also believes that few strategies are purely deliberate or purely emergent, but a mix of the two. Mixing the deliberate and the emergent strategies in some way will help the organization to control its course while encouraging the learning process. IncrementalismLindblom claimed that strategy is a fragmented process of serial and incremental decisions.Lindblom believes that strategy making involving small scale extensions of past practices would be more successful as it is likely to be more acceptable as consultation, compromise and accommodation were built into the process.Freewheeling opportunismDo not like planning and grab opportunities as they arise.Formal strategic planning is important when-there are long lead times.-the business needs to be turned around.-there is high capital expenditure involved.-many stakeholders are affected.ADs of formal strategic planning:1. Forces org to look ahead. Makes directors to think ahead and be proactive. 2. Improves the orgs fit with its environment.3. Provide long term directions for the whole org.4. Ensures consistent goal and objectives.5. Provide the orgs current position. Future OT can be identified and evaluated.6. Makes best use of scare resources7. Monitors progress and control over variations.DisADs of formal strategic planning:1. Cost2. Time3. Develops bureaucracy4. Stifle innovation 3 / 55. Difficult to change. Opportunities may be ignored as they are not in the plan.6. Less relevant in crisisFreewheeling opportunism is suitable for small businesses.It only looks at the present and immediate future and uses an ad hoc approach to management, reacting to situations as they develop.Freewheeling opportunism relies on the individual entrepreneurial skills of the orgs leader. It is informal and has no set procedures that must be followed.Ads of freewheeling opportunism:1. Flexible, can adapt to a rapidly changing environment. Suitable for business operating in a turbulent, creative market.2. Decisions can be made and implemented rapidly, giving the org a competitive advantage.3. It encourages and innovative culture within the org.DisADs of freewheeling opportunism:1. No long-term vision2. No clear objective3. relies on the individual entrepreneurial skills of the orgs leader4. No longer suitable when the org grows larger.Factors to consider when deciding method of strategic planning:1. The size of business and leadership style2. The orgs culture and structure3. The nature of the business (industrial manufacture or fashion)4. The skills and aspirations of managers.JS&W Model of Strategic ManagementJS&W (Johnson, Scholes and Whittington) model of strategic management is a rational planning model. It consists of 3 elements: strategic analysis, strategic choice and strategic implementation. The JS&W model of strategic management recognizes the interdependencies between the 3 elements.J&Ss Strategic LensesThe strategic lenses are 3 ways through which the strategy may be examined.1. Strategy as design lens: This is a rational top-down approach under careful control.2. Strategy as experience lens: This