Executive Summary
This assignment consists with two tasks. Task one extensively evaluates the emerging view and classical model of strategic management. At first, it is defined the classical model and emerging view of strategic management referring various authors. Then, it is discussed the extent that emerging view of strategies challenge classical model of strategic management. There is an argument that in current dynamic business environment, emerging view is replacing the classical model of strategic management. However, it is identified that choice of which strategic approach should be followed is depended on different factors such as volatility of external environment, risk appetite level of the organization, status of the product life cycle, management perspective etc.
In task two, it is extensively discussed on leadership and strategy. Leadership and strategy goes hand in hand and in this report, it is discussed the impact of leadership of strategy. This report has referred Kouzes and Posner (2003) to identify the characteristics of leaders which is important for strategic management. Further, Schoemaker, Krupp and Howland (2013) identified six essential skills for strategic leadership. Then, in this study, it is discussed the importance of leadership in the process of strategic development and implementation. Effective strategic leadership shapes the formation of vision, mission and values and theses components play significant role in regards strategic development and implementation. Further, Blake and Mouton’s leadership grid is used in this study to evaluate the leadership styles. According to that, team management is identified as the ideal leadership approach for strategic development and implementation. Finally, it is discussed leadership styles such as transformational leadership and situational leadership which are recognized as highly effective in regards strategic implementation and development.
Task 01
1.1 Emerging view and classical model of strategic management
Corporate strategy can be simply identified as course of actions of an organization to achieve its long term objectives. Further, corporate strategy can be defined as a broad direction established for the company and its constituent parts to achieve the desired state in the future (Hooley, et al., 2013). When it comes to strategic management, it can be identified two main approaches which mainly introduced by Michael Porter and Henry Mintzberg. Michael Porter is one of the gurus who emphasized classical model of strategic management and Henry Mintzberg first time introduced the emerging view of strategic management.
1.1.1 Classical model of strategic management
Classical model of strategic management a rational process which includes analysis, planning and rigorous execution of strategies (BCG, 2023). Classical model of strategic management focuses on securing the best possible market position for the company to attain sustainable competitive advantage. It is also called as deliberate strategy. According to classical model, competitive advantage can be achieved through superior scale, differentiation or superior capabilities (Johnson, et al., 2008).
Businesses should use classical model of strategic management in marketplaces with established, entrenched bases of competition that are generally predictable and steady (Johnson, et al., 2008). In these stable markets, market risk of disruption is relatively low and market conditions can be predicted. Environment indicators that classical model of strategic management can succeed are well established industries with high return to scale, stable growth rate and stable business model (Eden & Ackermann, 1998). Strategies are determined by analyzing and planning the forecasted factors and implement the exact planned strategies. Further, implemented actions are reviewed and monitored.
This approach has been widely used and the benefits of the model have been proven all over the world. This model lead to create proactive approach on management to achieve long term objectives of the company (Johnson, et al., 2008). Generally, chain of command deploys top to bottom when implement classical model of strategic management. Thus, it creates goal congruence (Johnson, et al., 2008). It offers a foundation for strategic control that establishes clear objectives and makes it possible to evaluate the efficacy of the strategic plan (Eden & Ackermann, 1998)