Strategic Management: History & Strategy Essay

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Question one, Part a:
1. These historical inputs are recognised and understood by the phrase “the way we do things around here” or the way business is now. History is the fusion and creation of internal and external cultural factors from the past that define the paradigm and the context through which strategies have been developed by decision makers within the company. History is the antecedents to strategy development that include embedded, stories, symbols, power, structure, controls, rituals and routines (refer appendix 1). Identifying historical context has the benefit of allowing businesses to develop strategies while avoiding recency bias and as a reference point to legitimise future strategies based on past successes. It allows
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This will drive the strategic direction of the business as identified by tools such as porters generic strategies (refer appendix 2). The choices identified will influence the strategic directions such as the scope, portfolio matrix and corporate/strategic business unit relationship. These factors can be researched with the help of approaches such as Ansoffs corporate strategies (refer appendix 3). Implementation of the outcomes created with Ansoffs model can be implemented with three strategic methods; organic development, mergers and acquisitions and strategic alliances. The key considerations in strategic decision making can then follow a systematic and well researched decision making process which allows confidence that all major aspects of a decision about the future have been covered. This analysis is a risk mitigation process that allows stake holder confidence in the decision making process for strategy creation.
3. Strategic drift is the misalignment of strategy with environmental change. The key causes of strategic drift will be created if the business has been successful and is reluctant to change a winning formula. This could be driven by historical stakeholder expectations and successes which mean strategy will be anchored in these expectations. This can allow these expectations to become core rigidities which make the company more inflexible. Sanctioning by

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