Whittington introduced four approaches to strategy which are classical approach, systemic approach, evolutionary approach and processual approach. Whilst planning are made through market changes adaptability in classical school, strategies must be updated daily to survive in unpredictable market in evolutionary school. Different from the two approaches, Whittington, mentioned:
By Samer H Skaik Introduction Strategic thinking has engaged the brains of business leaders for centuries. Many books and researches have been developed to cover the strategy subject because of its importance. Organizations always seek to adopt dynamic and effective strategic management to secure proper growth and remain competitive.
Strategic management is necessary to any organisation particularly those working in construction where there is a rapidly changing environment with adverse competition and surprises which may act as serious threats to organisation stability. This essay will critically examine the strategic management contemporary thinking and theories and describe how strategists within an organisation competing in construction industry, could draw upon such thinking and theories in shaping the practice of strategy development.
Strategy concept Despite the vast literature on strategic management, there is no single or unique definition. According to Ansoffstrategic management is a systematic approach to position and relate the firm to its environment in a way which will ensure its continued success and make it secured from surprises.
Cole argued that strategic management is basically concerned with setting the organization headlines aims, choosing the most suitable goals for such aims and achieving both over time.
Strategy is then understood to be acting as a guiding map for the organisation to achieve its clear intention for development and growth. There are many other different definitions generated from the nature of strategy approach; but they all have one thing in common, which is the aim to maximize the organization performance by enhancing its capability of competition with other organizations Whittington processual in the same competitive environment.
Although, strategic management as a concept can be defined, it seems to have a lot of ambiguities and complications when it is approached or developed. Strategy approaches There are different approaches to strategy.
Strategists of today must deeply understand the widely used approaches at least, to be efficient in thinking strategically. Whittington categorized strategy in four basic generic approaches: Classical, Evolutionary, Processual and Systematic which have different perspectives about strategy.
In classical approach, the strategy is a rational process of deliberate calculation and analysis designed to maximize long term advantage. French concluded that a radical change to open systems thinking, especially complex self-adapting systems, is required.
In evolutionary approach, the situation is different. Competition is not overcome by detached calculation and analysis but by constant struggle for survival Cuizon, Evolutionary approach calls that successful strategies only emerge as the process of the natural selection delivers its judgment.
According to Whittingtonthis means it is the market not managers which makes the important choices. The approach considers markets too tough and unpredictable to plan for long term strategies but agrees with the classical approach objective of profit maximizing.
This creates an argument that the approach basic emphasis is on survival which obviously contradicts the objective of profit maximizing.
Processual approach is similar to evolutionary approach in the sense that it doubts the value of rational long term planning but it does not agree of leaving the profit-maximizing outcomes to the market since market is full of mess and confusion Cuizon, Processual approach states that strategy is an emergent process of learning and adaptation Whittington, It adopts a pragmatic view aiming to make the sophisticated processes simple in light of the fact that the environment is not ideal or perfect.
Systematic approach has a relativist position.
It believes that organisation is able to plan and act effectively. This means that there should be no separation between economic activities and social factors to ensure success. The schools are categorized in either prescriptive and practitioner-focused or descriptive and research-focused.
Prescriptive school tends to deal with strategy process by analysis.
It is interested in how strategies should be formulated. While descriptive school is more about how strategy arises and emerges Mintzberg et al.
The schools were very different in language and concepts they use, that is why Segal-Horn argued that they may be genuinely distinctive and incomplete approaches. Strategists agree on a common point that strategic management process includes analysis, choice, implementation and feedback.
Prior to start with strategic management process for any firm, the strategist should ensure that the firm already has a well defined and clear mission and vision statements.
Success of any firm is usually judged by comparing its achievements with the set mission, goals and objectives. Strategic goals are often described as the core business since they are critical to success.
Organisations intend to make such goals and objectives explicit to employees to motivate them to achieve the targets as well as to shape the standards of the desired performance.
The leaders should develop a specific, inspiring, challenging and empowering vision Fellows et al. Peter argument tends to be more applicable for construction firms whereas they are often driven by the vision of a dynamic leader, particularly during the early years of the firm establishment and in the period of rapid growth or change.
Mission and vision of Emaar are good examples for Peter argument: Strategic management process Porter analysed the structure of an industry environment in terms of five basic forces which are buyers, suppliers, potential competitors, substitutes and competitive advantage.
Competitive advantage is the most important force which shapes the market environment.One Response to “Implementing Strategic Management in Construction” Kristeen Savells Says: July 14th, at pm. Assessing the cash flow is another important element in the company strategy format, so as to sustain a normal money flow to meet the essential capital needs.
Richard Whittington, taking a Western viewpoint, has collated several theories about strategy from the past five decades and categorized them into four groups by placing certain approaches into certain decades starting in the early ’s.
Processual Approach to Change Definition. The processual approach states that change is continuous and without a finite end point.
Change is also a "messy" process that is shaped by an organisation's history, culture, and internal politics. Tea specialist. Discover a new way to buy loose leaf tea online with Sourced by Kyle tea club. Learn with tea tasting events & more.
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Whittington steps back and compares how different theories of strategy answer the questions ‘what is strategy’ and ‘how do strategies come about?’.He exposes the different assumptions underlying the different theories regarding human nature and the relationship between individual action and.