Strategic Mode.....
Strategic decision making into 3 modes:
Entrepreneurial mode – where formulation of strategy is done by a single person. Focus is on opportunities and growth.
Advantage is the speed with which strategy can be formulated and implemented. Disadvantage is that does not consider problems that may arise in the processes. Strategy is characterized by bold decisions.
For example WIPRO Infotech , Apple computers
Adaptive mode – it is characterized by reactive solutions than proactive search for new opportunities. Example : introduction of customized personal computers in response to DELL in Indian market or coke. This results in fragmented strategy for incremental improvement.
Planning mode : this involves systematic information gathering for situational analysis generating alternate strategies and selection of appropriate strategy. This mode includes both reactive and proactive solutions to current problems. Ex: entry of MNCs in the automotive markets in India made the lead player Maruti Suzuki come out with new models and slowdown production of non moving models.
Some times organizations may adopt a forth mode called logical incrementalisation mode
This is a synthesis of all three modes indicated above. This is an interactive process in which the organization probes the future, experiments and learns from a series of partial commitments rather than through global formulations of total strategies.
Modes of strategic management
Modes of strategic management are the approaches adopted by managers in formulating and implementing strategies. They address the issues of who has the major influence in the strategic management process and how the process is carried out. Managers generally use of one of three major approaches to strategic management: entrepreneurial, adaptive and planning.
Adaptive Mode: This is an approach to strategy formulation that emphasizes taking small, incremental steps reacting to problems rather than seeking opportunities and attempting to satisfy
Entrepreneurial mode – where formulation of strategy is done by a single person. Focus is on opportunities and growth.
Advantage is the speed with which strategy can be formulated and implemented. Disadvantage is that does not consider problems that may arise in the processes. Strategy is characterized by bold decisions.
For example WIPRO Infotech , Apple computers
Adaptive mode – it is characterized by reactive solutions than proactive search for new opportunities. Example : introduction of customized personal computers in response to DELL in Indian market or coke. This results in fragmented strategy for incremental improvement.
Planning mode : this involves systematic information gathering for situational analysis generating alternate strategies and selection of appropriate strategy. This mode includes both reactive and proactive solutions to current problems. Ex: entry of MNCs in the automotive markets in India made the lead player Maruti Suzuki come out with new models and slowdown production of non moving models.
Some times organizations may adopt a forth mode called logical incrementalisation mode
This is a synthesis of all three modes indicated above. This is an interactive process in which the organization probes the future, experiments and learns from a series of partial commitments rather than through global formulations of total strategies.
Modes of strategic management
Modes of strategic management are the approaches adopted by managers in formulating and implementing strategies. They address the issues of who has the major influence in the strategic management process and how the process is carried out. Managers generally use of one of three major approaches to strategic management: entrepreneurial, adaptive and planning.
Adaptive Mode: This is an approach to strategy formulation that emphasizes taking small, incremental steps reacting to problems rather than seeking opportunities and attempting to satisfy