Business Strategy in Global Environment

Topics: Strategic management, Web search engine, Google Pages: 16 (4360 words) Published: August 4, 2013
1| Jose Joseph Kattakayam| 0124KMKM1009|
2| Abjor George Koippuram| 0864RDRD1009|
3| Jithu Jose| 0176DDDD1009|
4| Deepak Mukundan| 0821RDRD1009|
 |  |  |

1. Introduction

Does strategy means operational efficiency? Or is it about the profitability of the organisation? According to Johnson and Scholes, "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations". Strategy of an organisation can be characterised by the way of performing activities than their rivals. Positioning in the market was considered as the heart of strategy. But globalisation and changing technologies gifted an ever changing dynamic market in which static methodologies like positioning become obsolete. Operational effectiveness will not make a company the strategic market leader. The strategic positioning emerges from three distinct points; variety based positioning, need based positioning and access based positioning. Leadership and motivating the employees are vital in the strategy implementation (Porter, HBR 1996). We are discussing how Google has successfully incorporated various business strategy models, concepts and theories and became a strategic leader in the information age. They have a wide variety of products like search engine, mail service, orkut, youtube, Picasa, web browser, operating system etc. They always guide the market with newer technologies and advanced products.  

2. Schools of Strategies

Strategy is the key success factor of any organisation. It gives the long term direction to the company. The strategy formation depends on the scope of an organisation’s activities. Competitive advantage is a short term gain in today’s dynamic market. Henry Mintzberg suggested the ten schools of strategy which is ideal for a successful organisation. It is mainly divided into three classes; prescriptive, descriptive and configuration.

2.1 Prescriptive Schools
            The design, planning and positioning schools are coming under this class. SWOT analysis is the key element of design school. It evaluates the strengths and weaknesses of the organisation by considering the opportunities and threats. The result will be used to design the strategy company should follow to achieve its long term and short term objectives. The strategy should fit with the internal capabilities and external possibilities. This ‘Strategic Fit’ is corner stone of design school. It works well in stable environments but not much suitable for changing environment.             The planning school is more about a formal approach which include rigorous set of activities from the analysis to the implementation. It follows the assumption made in the design school.  Much brainstorming is required for planning as it direct the organisation to the future. Management should take measures to modify their strategies according to the market and other environmental factors. The organisation should have a real time strategy policy which can handle the ‘creative accidents’.             The positioning school is an analytical process in which we see the business in economic and competitive context of industry and find out how to improve the positioning in the market. Strategies proposed in this process will be implemented, so the market structure helps to drive the positional strategies of an organisation.

2.2 Descriptive Schools
The entrepreneurial, cognitive, learning, power, cultural and environmental schools are descriptive in nature. Entrepreneurial school is about the visionary process of a charismatic founder or leader of an organisation. The intuition, wisdom, judgement, experience and insight of a person...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on global business environment
  • the business environment Essay
  • Global Business Environment Essay
  • Business Environment Essay
  • Essay on business environment
  • Global Business Environment
  • Global Strategy Essay
  • Business Environment Essay

Become a StudyMode Member

Sign Up - It's Free