Strategic Management: Approaches to Strategy

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

The Prescriptive Approach
The Emergent Approach
Supporting Functions in a Company
A Five-Year HR strategy
References

The Prescriptive Approach

The prescriptive approach is an action that implies thorough planning and premeditation and strict monitoring from start to finish. The strongest characteristic of this approach is a logical and rational implementation of strategic management. One more advantage of the prescriptive strategy is the systematic planning that allows observing objectives and ways of dealing with them utterly clearly. In other words, the benefits of this approach can be summed up as an ability to understand a purpose inside out, thorough planning, and resultative success due to strict and systematic following it. As an example, many companies developed and thrived during the 1970-80s, such as Ford and General Electric.

In contrast, its disadvantages are the lack of creativity as a result of strict frames, and the lack of flexibility since the approach denies any deviation from an original plan. Consequently, the actual results of the prescriptive approach usually contradict those planned. According to AlShehhi, AlMulla, and Mansoor (2019), it was established in the 1970-the 80s that rigid strategy demonstrated poor results in the unstable environment of the UAE. For instance, a company may need to change a supplier or invent an unusual idea for more effectiveness in reaching its goals, which are impossible in the frames of this approach.

The Emergent Approach

This approach takes into account the ability of the strategy to evolve and change during its implementation. Its main advantage is increased flexibility – it is possible to move

away from an original approach. It also allows a company to use creative methods in its deals. For instance, a company takes an unpredictable course of action if it is believed to contribute to the ultimate success. According to Campbell, Edgar, and Stonehouse (2011), such companies as Sony, Honda, and Adidas reached their success as a result of implementing the emergent approach. On the other hand, there can be a lack of precise targeting, which will lead to unclear results. Therefore, the main disadvantage of the emergent strategy is the lack of focus and consequent uncertainty in actions. Also, it is hard to assess the performance and analyse the results for future planning.

Supporting Functions in a Company

Support functions are auxiliary activities implemented to assist more significant functions and a company’s production activity. The results of support functions are not intended directly for third parties or the market. An example of supporting functions is transportation activities, which imply ways of delivery, speed, quality of transport equipment, and other characteristics. It is possible to add value to a company due to developing this function since the speed and quality of delivery is essential, especially for a demanding customer. Besides, the more ways of transportation there is, the more convenient for various customers it is. Last but not least, it would also add value to a firm if there were more than enough delivery employees and equipment.

What is more, advertising is also an example of supporting functions that is worth developing. Firstly, it contributes to raising public awareness of a product, which affects the value of a company by attracting new customers. Secondly, advertising provides customers with information about a product, which makes them trust a company. Besides, it adds value to a firm in terms of fighting competition, making a product more understandable and accessible.

A Five-Year HR strategy

Company A (Al Beer hospital)

To start with, the main objective of the company is to expand its workforce. One of the efficient ways to do so is to make the hospital a great place to work to attract new employees and encourage people to plan on gaining a diploma in a relevant area. Therefore, the following plan can be taken into consideration.

Observe and promote recognition schemes
Define and celebrate success, develop a praise system for the workers
Develop an inner system of training the employees
Set explicit purposes and train managers to communicate them
Establish reward policies
Create a senior support group with which new employees can consult
Improve the employment package to make salary and other criteria beneficial in comparison among the market
Demonstrate the values and ethics through communication with staff

Company B (Nokia)

To start with, before sharply reducing the workforce, it may be a worthy idea to consider some other steps of optimizing production and management. The first one is to freeze hiring, salary, and benefit increases. It would allow a company to focus on the existing workforce and finish current orders. Then, the company can review its temporary and contract employees and start a reduction with firing them since there is not the same commitment as to regular workers. The next step is implementing voluntary layoffs and early retirements. Although these options may be demanding in the short-term, they are useful in the long-term. Besides, it can be worthy of suggesting unpaid employee furloughs as an alternative to voluntary layoff. In case layoffs themselves are inevitable, the steps listed will help to conduct them more smoothly and minimize the risks of disturbance and profit loss.

References

AlShehhi, A., AlMulla, H., & Mansoor, W. (2019, December). Strategic planning impact on innovation and organizational performance in the UAE. In International Conference on Advances in Business and Law (ICABL) (Vol. 3, No. 1, pp. 5-17).

Campbell, D., Edgar, D., & Stonehouse, G. (2011). Business strategy: An introduction. London, England: Macmillan International Higher Education.

Click Here To Order Now!