Prescriptive strategy is one where the objective has been defined in advance and main elements have been developed before the strategy commences. Prescriptive strategy starts with the analysis of the competitive environments and resources of the organization. Then an agreed purpose is established such as a maximization of return on capital involved in a business. PRESCRITIVE MANAGEMENT PROCESS
1. Develop and define organizations objective
2. Analysis and projection of the environment surrounding the organization: macroeconomics, political climate 3. Reconsider objective (and change if the environment requires this) 4. Develop strategy options
5. Select options against the likelihood of achieving objective 6. Implement chosen strategy option
ADVANTAGE OF PRESCRIPTIVE APPROACH
1. Provides an overview of the organization thus objectives can be compared. 2. Assessment of the resources of the organization, especially those that deliver 3. Allocation of resources that are scarce.
4. Monitoring the implementation and monitoring of a plan. EMERGENT STRATEGIC MANAGEMENT IN PRACTICEE
Emergent strategic management is a strategy whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceeds. However it should be noted that there are many variations on this basic approach. STRATEGY
Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". Johnson & Scholes (Exploring Corporate Strategy)
Strategies exist at various levels of the business
* Corporate – overall purpose and scope of the business to meet shareholders expectations – influenced * Business Unit – how business competes in a specific market – product choice, customers needs,...