Planned and Emergent Approach Finding a Balance

Topics: Strategic management, Management, Scenario planning Pages: 8 (2490 words) Published: May 30, 2013
The essay will cover the importance the balance between planned and emergent approach through the framework of game theory/ net value and scenario thinking and planning. It would also incorporate the idea of chaos theory and the importance of understanding the market through certain criteria that have been learned in the course.

Introduction to each approach
Planned approach is a formalized approach to a strategy; it focuses on control formalization, centralization and inflexibility. (Mintzberg, 1994) Organisations are subject to rigid control with no chances of improvisation and learning. Nevertheless planned approach helps marketing in the sense of decomposing and simplifying problems, rationalizing and articulating. It also assists in planning marketing by objectives of the organisation. Planned approach coordinates activities that take into account of the future, control and rationalization. Mintzberg does not agree with the 3 major objective of the planned approach which is to decompose, to rationalize and to articulate. Mintzberg argues that the 3 key objectives have flaws, since it creates no room for learning or improvisation, a reductionist view that creates inflexibility and too coordinated activity to engage in a proactive environment. Planned approach is best suited in a ruled based game since in a rule-based games consists of controlling the market whereby there is a reaction to every action. Emergent approach on the hand focus on learning, innovation and observation, which accepts changes and improvisation of plans and strategy to suit the circumstances faces. (MacBeth, 2002) The emergent approach involves minimum control over a situation and emphasizes on learning, adjusting, improvising and innovating according to the situations that an organisation is in. Nevertheless in order for the emergent approach to be affective, it requires a clear business vision. Business vision is required to support ideological control and operational independence to maintain balance and prevent time wastage and cost (Hendrickson, L7 Slide 27). Emergent approach does not indicate that there is no control, or that management has no control over the organisation but rather shows the quality of willing to learn, responsiveness and flexibility. The emergent approach is best suited in a freewheeling-game.

Incorporating each approach in marketing planning
Marketing planning process can be defined as structure of process that links the mission, organized strategy and business strategy to make marketing decisions and actions. In order to incorporate what type of approach is suitable for a market, we need to identify the type of market. There are 5 definitions for market being, potential market, available market, qualified market, target market and penetrated market. (Wood, 2010) To further summarize the type approach that should be used in a market depends on how stochastic the market is. In a slightly stochastic market, a more planned approach should be adopted while in a more stochastic market, more of the emergent approach should be considered. A hypothesis can be made here by saying “the more stochastic the market behaviour, the more emergent your approach will need to be”. (Hendrickson, L7 Slide 22). Stochastic markets are markets where environmental factors are uncontrollable, complex and dynamic, where market industries and economies are driven by change. One of the factors that determine whether a market is more or less stochastic depends on the macro-environment factors, or known as PESTER (political, economic, social cultural, technological, ecological and religious) affects the markets, making its ever changing and either being planned or stochastic.(Hubbard, Rice and Beamish, 2008). PARTS (player, added value, rules, tactic and scope) also show that it can affect the market conditions thus making a market stochastic. (Nalebuff and Brandenburger, 1995) Furthermore, customer demands can also effect market conditions,...
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