Strategic Management Schools Of Thought
The design school of thought
The design school of thought uses the strength, weakness, opportunity and threats that are present in the internal and external environment to reduce risks as well as to ensure that resources are effectively allocated. Projects that are seen as risky in relation to the company’s strength are assigned less resources while those involving less risk are given a better portion of resources. Similarly, generic strategies are used as a way of eliminating any uncertainty which may be hindering particular opportunities (Mintzberg, Ahlstrand, and Joseph, 1998).Usually, the design school tries to incorporate a clear understanding of the existing market such that the company is able to connect with the target group. This strategy is often enhanced by presence of a specific brand name for various products such that the target group is able to identify the product quite easily.
Similarly, the ability to identify an opportunity presented by a weak competitor may come in handy when launching a new product especially if the brand name is different (Moller and Herrman, 2004). The design school of thought approaches fast-moving environments by encouraging employers to invest in their employees such that at all times every one of them is able to catch up with the changing world. This includes frequent training programs for all as well as organising forums in which the employees are able to share their expertise amongst themselves then an opportunity is presented whereby the learnt ideas are related to the practices of the organization. This strategy increases awareness of evolving trends in the world as well as planning for the future of the organisation by embracing ideologies presented by the changing environments (Moller, 2004).
Positioning school of thought
The learning school of thought manages risks by ensuring that certain aspects of the organization are dealt with independently as they occur. This school calls for those who are conversant with various projects or business facets to handle the challenge at hand. Resources are allocated as per the extent of experimentation involve in that particular project (Mintzberg, 1998).Presence of an unstable market structure reduces instance of applying the learning school of thought as most of its strategies are usually experimental. This enables the top management to identify strategies which work during specific market situations such that not all strategies are incorporated at a go. The lessons that are learnt in previous similar practices are incorporated into various strategic positions of the market structure. This is unlike the design school which applies the best strategy available though not necessarily one which has been experimented. Past mistakes are not repeated but rather the management learns form them then move son to incorporate more realistic strategies. (Henry, 2008).The learning school of though applies more emphasis on the process involved to obtain certain results such that employees are able to adapt to fast moving environments by trying out various procedures. The results obtained by employing various methods of carrying out various strategic applications are analysed and the method which presents a clear procedural experiment for certain tasks are adapted (Moller, 2004).
Rerenfence
Henry, A. (2008), Understanding strategic management. London: Oxford University Press
Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998), Strategy Safari A Guided Tour Through the Wilds of Strategic Management. New York: the Free Press
Moller, G. and Herrmann, C.(2004), Strategic design planning: the future of brand management. Retrieved on May 31, 2010 from: www.brandchannel.com/brand_speak.asp?bs_id=84 -.
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