Organization & Environment - Short table of 10 schools
School D/E Strategy is Change Central Environ- Central actor Applies best to Type of
ment organization
Design Deliberate Unique Simple Integrated Occasionally, quantum Leadership Stable CEO Young, new Machine
Stable
Planning Deliberate Unique Simple Components Occasionally, quantum Organization Stable CEO + planners, analysts Large, young Machine
in the middle Stable
Positioning Deliberate Generic Simple Components Frequently, piecemeal Organization Stable CEO + planners, analysts Large, small Machine
Established
Entrepreneurial Deliberate Unique Simple Integration Occasionally, quantum Leadership Dynamic CEO Stable, dynamic Entrepreneurial
Large, small
Cognitive Emergent Unique Complex Integration Occasionally, quantum Leadership Dynamic CEO + strategist Can be all
Learning Emergent Unique Complex Components Frequently, piecemeal Leadership Dynamic Everyone Complex Adhocracy
in the middle Professional
Power Emergent Unique Complex Components Frequently, piecemeal Organization Controllable Everyone Political
Cultural Deliberate Unique Complex Integrated Occasionally, quantum Organization Passive Everyone Resistance to Missionary
change
Environmental Emergent Generic Simple Components Occasionally, quantum Environment Competitive Environment Machine
Configurational Deliberate Generic Depends Integrated Occasionally, quantum Depends Depends Depends Large, massive Can be all
companies
Organization & Environment – Extensive table of the 10 schools
School Deliberative Key words Tools Applies best to Strategy Central Process Critique Contributions
/ Emergent formation person
Design Deliberate Conception SWOT Young, Simple, CEO Formulation → Structure Vocabulary
Distinctive Navigating entrepreneurial, explicit, Critical implementation follows Fit
competences: through new informal, one thinking and Linear strategy is Grand
alignment internal environment. organisations of a kind, cognitive No iterative not feasible. strategy: vision
and external. Environment (with major shift). taylor made. flexible. process Universality to go
Process → cannot be Centrally First thinking, (SWOT) somewhere.
intrinsically linked. changed or formulated. then acting.
, Response to interacted Stable and Strategy Must have Capacity to Guiding an
external with, it should predictable making can be all Quantum and learn. organisation
environment. be environments learned. information. revolutionary Inflexibility
Environment is understood. Structure How does change. Detachment
stable and Does not talk Because we follows he/she see of thinking
predictable. about cannot change strategy the from acting.
Focuses on present competitors → structure organisation Bounded
environment. universal tool Learn by ? rationality
thinking.
Planning Deliberate Formal SWOT: steps, Stable Conscious, Group Planning and Fallacy of: Taking into
Control checklists, environments formal, full- process implementation Predetermin account
Procedure, analytical Evolutionary blown, are separate ation: we different
training, analysis, techniques, change detailed, made CEO is steps. don’t know possible
numbers objectives, explicit, responsible Plan → what will futures.
Adds to design: budgets and Both large and controlled. for overall implement. happen Actively
formulized operating young Distinct steps. process. Objective → Detachment: thinking and
procedures. plans organizations. Collection of analysis → hierarchy of creating
Environment is components. Staff evaluate options plans. future.
stable, but can be Scenario planners → Formalization
changed. You can planning: Plan to plan responsible operationalizatio : Tools
interact with it. prepares you Overarching for n and schedule. overanalysin Explicit on the
Organisations can for the future strategy execution. Linear. g paralyzing future
learn. that breaks (detailed and No iterative creativity. Scenario
Constantly radically with formalized) process. No room for thinking
adapting. the past. Sub plans creativity. Tracing back
Predicting Real options Hierarchy Stability and - Strategic the steps
patterns. change planning: because it is
Clear rewards Strategic concurrently. planning documented
Machines. planning: HQ cannot Formal
Taylorism: do highly involved Promote precede planning,
everything as best Financial incremental strategizing internal
as you can. control: change. oriented
Fordism: minimal Planning
specialisation involvement school is only
Focuses on future HQ a tool to
Strategic create
control: hybrid strategy by
, analysing
options but
does not
assess the
content.
Criticizing is
easy.
Positioning Deliberate Analytical BCG → at the Stable Controlled, Planner and Industry Bias towards Analysis of
(calculation) end only cash environments (as simple, analyst have structure → big and environment
Accepts most cows and we cannot conscious important Position → established, and
premises of design dogs. change strategy) process. role → they create position / external calculation.
and planning Experience Established Full-blown, inform CEO organizational conditions Taking into
4 Generic curve industries detailed, made structure and stability. account what
strategies can be Porter: Both large and explicit CEO is You cannot others are
defended against - Five Forces small firms Collection of responsible change the Separation of doing.
competitors - Generic Discourages the components for overall strategy, you can thinking (top) Supports the
Marketplace is strategies creation of new Generic process only defend it. from acting strategy
economic and - Value chain categories. Big data (bottom) formation
competitive Only pursue Role for Linear: undermines process, but it
Maxims: rules of Game Theory ONE strategy external First created, strategic is not the
conduct. Prisoner’s successfully parties then learning and process.
Formalized Dilemma: implemented creativity. Analysis
Focussed on Cooperation Analysts Narrow should never
environment and maximizes deliver Defensive vision due to dominate the
how actors are profit. result to strategies: focus on process.
relating. Defection managers Economies of competition
Third wave: how to minimized who make scale, lobbying, No unique
surround profit (but is decisions. M&As. perspective.
competitors better for Most
Fourth wave: customers). Focus on what deterministic
Causal effects Dead weight others are doing. school.
loss: Current
Firms can interact consumer’s Strategies are trends
with environment loss due to only afterwards relying on
cooperative implemented. hard data
price and
