Patterns In Strategic Formation

Group members:• Faisal Faheem Ahmad• Asad Ullah • Shahbaz khan• Muhammad Zulfiqar• Naheed

Overview of case study

First section describe the term strategy and how it lead naturally to the choice of research methodology.

Methodology is described in second section.

Third section describe the results of formation of strategies of two organization

Final section describe some theoretical conclusion about strategy formulation.

Overview of Case study

Defining strategy “a pattern in a stream of decision”

Intended and realized strategies Completed two studies

(volkswagenwerk from 1934 to 1974, United states in Vietnam from 1950 to 1973)

Overview of case study

Strategy formulation be viewed as interplay b/w a dynamic environment and bureaucratic momentum, with leadership mediating b/w the two forces.

Strategy formulation follow some important pattern in organization, like life cycles and distinct change continuity cycles within these.

Intended and realized strategies lead us to the heart of complex organizational process.

How strategies are formed in organization

The planning mode Adaptive mode Entrepreneurial mode

strategy The determination of the basic long term

goals and objectives of an enterprise , and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.

Explicit Developed consciously and purposefully Made in advance of the specific decision

in which it applies.

strategy

Strategies as intended, as prior guidelines as well as strategies as evolved, a posteriori consistencies in decisional behavior.

The research methodology

Collection of data important decision and action by the

organization. important events and trends in the

environment. Inference of strategies and periods of

change

The research methodology

Intensive analysis of periods of change Theoretical analysis Why do intended strategies differ from realized

ones. What is the role of leadership , planning , shared

goals and bargaining in integrating different strategies.

THE STRATEGIES OF VOLKSWAGENWERK

1920 TO 1974 THE STUDY DIVIDES INTO SEVEN DISTINCT AS FOLLOWS

THOSE SEVEN ERAS ARE?

1- BEFORE 1948 FLUX. 2- GLOBAL CHANGE 1948. 3- CONTINUITY 1949 TO 1958. 4- MINOR CHANGE 1959. 5- CONTINUITY 1960 TO 1964. 6- GROPING 1965 TO 1970. 7- GLOBAL CHANGE 1971 TO 1974.

U.S STRATEGY IN VIETNAM

1950 TO 1973THE CENTRAL THEMES CAN BE REVIEWED BRIEFLY IN TEN DISTINCT PERIODS TO SHOW THE MAIN PATTERNS OF CHANGE AND CONTINUITY.

THOSE PERIODS ARE?

1- GLOBAL CHANGE 1950. 2- CONTINUITY 1950 TO 1953. 3- FLUX 1954,THEN GLOBAL CHANGE. 4- AGAIN CONTINUITY 1955 TO 1961. 5- AGAIN GLOBAL CHANGE IN 1961.

CONTINUE

6- INCREMENTAL CHANGE LEADING TO GLOBAL CHANGE 1962 T0 1965.

7- CONTINUITY 1965 T0 1967. 8- GLOBAL CHANGE 1968. 9- 1968 TO 1969:LIMBO,THEN GLOBAL

CHANGE. 10- CONTINUITY 1970 TO 1973.

THREE FORCES INVOLVE IN STRATEGY FORMATION

1- ENVIRNMENT.

2- BUREAUCRACY.

3- LEADERSHIP.

STRATEGY & STRATEGIC CHANGE

STRATEGY IS SET OF CONSISTENT BEHAVIORS BY AN ORGANIZATION.

STRATEGIC CHANGE IS ORGANIZATION RESPONSE TO ENVIRONMENTAL CHANGE.

ANALYSIS OF VOLKSWAGENWERK

LEADERSHIPENVIRONMENTBUREAUCRACY

ANALYSIS OF U.S STRATEGY IN VIETNAM

META STRATEGY.BUREAUCRATIC MOMENTUMENVIRONMENTAL CHANGELEADERSHIP.

Patterns of strategic change

There are two main patterns in studies life cycle of strategy Periodic change in strategy and

continuity

Conception Elaboration Decay Death

Life cycle of strategy

Why do organizations under go distrinct period of change and

continuity?

QUESTION

Strategic pattern of I. VolkswagenwerkII. U.S strategy in vietnam

PATTERNS IN STRATEGY FORMATION Deliberate vs Emergent Strategy

Intended and realized strategies leads towards center of complex organizational process.

Intended and Realized strategies combine in three ways:

1. Intended strategy get Realized that is called DELIBERATE strategy.2. Intended strategy do not get Realized that is called UNREALIZED strategy.I.e. Unrealistic expectations, Misjudgment of environment or changes in implementation 3. Realized strategy that was not intended because no strategy was intended or adaptive because of failure of intended strategy that is called EMERGENT strategy.

PATTERNS IN STRATEGY FORMATIONCONCLUSION

This article defines strategy: a pattern in stream of decision.

It presents 3 central themes needed for strategy formulation:1. Leadership mediates b/w dynamic environment & bureaucratic momentum.2. Observation of organization’s past pattern / life cycle.3. Intended & Realized strategies become Deliberate, Unrealized or Emergent strategies.

PATTERNS IN STRATEGY FORMATION

CONCLUSIONFor formulation of strategies:

→Old descriptions are not working, grow out of sophisticated understanding of formulation.

→ Open mindedness, recognition of how little we know & intensive painstaking researches are needed to formulate strategies.