Approaches to Strategy Formation

Topics: Thought, Entrepreneur, Entrepreneurship Pages: 2 (298 words) Published: August 19, 2013
Approaches To Strategy Formation
I.Traditional Approach
II.Modern Approach

Traditional Approach
\A size-up of the situation of the company as a whole generally on the basis of size-ups of the functional departments Determination of objectives
Development of a program of action covering the various activities of the company in the light of direction and unity of purpose provided by the objectives

Modern Approach
1.Intuition
2.Disjointed Incrementalism: This approach to strategy making reflects an attitude of management having strong preference for acting only when forced to, and then considering a few convenient alternatives involving only small disruptive changes in the organization. 3.Entrepreneurial Approach: The thrust underlying this approach is related with the role of the manager as an entrepreneur. 4.‘Inside Out’ Planning: It ought to be first convinced in a thought process arising out of the unique talents and resources processed by a company. Market forecast should be considered later as a kind of check or constraint on strategies so conceived. 5.Key-Factor Approach: This approach consist of determining the really significant factors that are important in the success of a particular business and concentrating major decisions on it. 6.Integrated Approach: An integrative approach to the strategy-making process provides a framework which consists of the following parts:- a)Analyzing the present internal and external conditions

b)Identifying and evaluating the present strategy- the major objectives, policies and plans currently guiding the firm c)Considering changes in the present strategy
d)Generating alternatives to resolve the problems and exploit the opportunities e)Developing alternative unified strategies by combining the various alternatives in each of the problem and opportunity area f)Evaluation of each unified strategy in terms of the enterprise objectives and choosing the strategy that best satisfies the...
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