1. In
your own words and using referenced quotes explain why strategy theories
developed in the last 10 years tend to be quite different from those developed
in the 1960’s.
·
Classical Approach to Strategy (1960):
The classical view of strategy is related
on the military practice, in which the globe is a firm hierarchy with a single
general who makes decisions. The military model is balance by an intellectual
inheritance from economics. Von Neumann & Morgenstern (1944 in Whittington
1993) ‘placed this remarkable figure right at the heart of their idea of
strategy as a complicated ‘game’ of move and counter-move, bluff and
counter-bluff, among competing yet interdependent businesses. This vision of
individuals in tandem with Smith’s view that ‘each individual is constant
exerting himself to find out the most beneficial employment of whatever
capital he can command’, creates a stereotype of the manager who is paying
attention on maximizing return on investment.
·
Classical
strategy places immense confidence in the ability of managers to adopt profit
maximizing strategies throughout coherent long-term planning. Porter has easily
located the classical mould, particularly as his books offers an advice on
attain ‘above average industry profits’.
·
Processual Approaches To Strategy (1970):
A processual examination of the firm is one
which nominates organizations as association of individuals, each of whom
transports their own personal objectives and cognitive unfairness to the organization.
For the scholars (Richard Cyert, James March and Herbert Simon) strategy is a
continuing process of negotiation as rational economic man is a fiction and
people are only ‘bounded rational’. Processual scholars quarrel that because of
these limitations strategy become the slow adjusting of schedule to
self-conscious messages from the environment which ultimately force them on the
manager’s concentration. Strategies are not only designed and pursue
action, but it is also a means to make intelligence of the chaos of the globe.
Therefore, strategies are frequently ‘emergent’, their logic grow through action
and supposed in retrospect, while successive little steps eventually combine
into a pattern (Harfield & Hamilton, 1997a).
·
Evolutionary Approaches to Strategy (1980):
It seems that companies are not occupied
with the ‘ideal of economic man’. Not only do managers not succeed to locate
output at the supposedly profit-maximizing stage where marginal costs exactly
the same marginal revenue, however most managers lack idea what their marginal
cost and revenue curves are! (Hall & Hitch 1939 in Whittington 1993) Enter
the experts! Economists familiar to this business ‘stupidity’ by charter ‘the
markets’ do the ‘thinking’. Through this view of the globe, ‘markets’ not
managers select the existing strategies within a particular atmosphere. For
those strategists who remain to the evolutionary analysis of competition,
survivors may emerge to be those who have modified themselves to the
surroundings (Williamson, 1991). Competition is the most successful figure of
‘weeding out inefficiency’ or lack of adaptation, as a result easy entry into
market is the technique to guarantee healthy industries.
·
Systemic Perspectives on Strategy (1990):
Granovetter (1985) has argued that economic
action cannot be placed in a divide sphere of impersonal financial calculation
as of our social embeddedness. Economic performance is fixed in a network of
social relations; the state, professions, families. These networks control both
the means and the ends of action, identifying suitable and reasonable behavior
for their member. Therefore, personal histories which comprise gender, family
position, educational background, religion, and ethnicity all outline economic
activity. This social constructivist analysis suggests that the model which
lead strategy are not cognitive (Huff, 1990), but cultural. Culture, defined as
a sequence of social systems, effects and is precious by firms, industries and
economies (Gergen, 1994). Whittington (1993) argues that still with the
increase in overseas trade and foreign investment, the custom of history and
society still matter. It could be that the awfully notion of ‘strategy’ may be
culturally particular to the situation in the United States in the 1950s and
60s.
-
The
phrase of strategy is facilitates by the above quotes, and its meaning by the
different strategists and how it has changed from past to present days. We find
remarkable change or development of strategy from 1960’s to present time. The
mode or approach we understand and interpret in present days is much more
different than in past 1960’s. At that time (1960’s) there is stable political,
legal and economic condition as well as less competition to compete in market.
However, the time is changing nowadays; there is no stable political, legal and
economic situation as well as high competition in between competitors. So at
present strategist need to be more innovative and flexible to offer best
outcomes to the customers, as their demand are increased on their particulars
product or services.
-
Difference
between strategy theory developed in last ten years and those developed in
1960’s can also be illustrated by the strategy theory responses which is
enlisted as follows:
·
Rapid Adaptation:
As compared to last decades, today’s
customer’s wants and desires as well as technology are advancing one after
another. It is intelligent to articulate that present date competitive
advantage that cannot be attained by the means of positioning strategy or through
unique resources. According to change in environment, different companies are
changing their strategy and sometimes it is very hard to use habitual or
popular tools like - SWOT analysis as it is difficult to understand and to
examine the changing environment or market.
·
Option Theory:
No doubt that the porters five forces model
helps us to identify the position of the firm, through examining the
competitive rivalry which depends upon the bargaining power of buyers and
suppliers, availability of substitute goods and threat of new entrants.
According to changing environment concept, perception of a business person,
customers has been change. Nowadays, it is observed that competition land from
flexibility in the organization, so company need to take care of the environment
and cope with changing environment surprisingly. Due to this, firms need to be
more flexible and loyal than before to the customers, so that it becomes a
competitive advantage to the company.
·
Complexity Theory:
By observing the current strategy, it can
be clearly identified that everything is unpredictable. The key determinant for
adapting the change would be flexibility. Eg- Emergent vs. Deliberate strategy.
Number 2. Module benefits:
1.
After,
understanding different analytical tools like MC Kinsey 7’s Model, SWOT, TOWS
matrix, PESTEL, Change kaleidoscope, Force Field Analysis, Porters Five Forces
Model and many others. We are now able to understand the nature of business and
its problems and to implement the best strategy tools that can handle different
problems effectively and efficiently that relates to the organization.
2.
Being a
strategist is not easy and in order to be one, it is important to become
familiar with interpersonal skills and the interactive skills- presentation
skills, development of creativity and enhanced flexibility has been gained
through this model. This module has made us see the real time scenarios and
helped us understand the importance of strategies and their impacts in the
business world.
3.
Strategy related jobs are complex in
nature. Previously it used to be a source for long term planning and decision
making but nowadays the importance, nature as well as the sense and demand of
strategy changed rapidly in a positive direction. Therefore, strategy is a tool
that helps us to construct the environmental surroundings, whole organization and
the firm that facilitates us to adjust the change and to become more flexible.
4.
It has 30
credits for our total credit hours.
5.
Every aspect
of strategy is covered by the module (definition, strategy formation, its
implementations and various multi-purpose strategic approaches). In addition, the
future of strategy is clearly delivered through this module.
Gaga Case study
Millions of people were
in awe with her videos, plots, pop-culture visuals and also her brilliant
dancing skills with many declaring that she has “revolutionized” all the music
videos with her unique sense of portraying themes. She has literally gone full
mile by committing truly and honestly with decency to her art.
She isn’t an airhead or
an idiot for following the guidelines of her record label bosses rather she is
extremely talented and had used her strategies by living through her art. (OCD TETRIS, 2013)
Overall she has been so
successful because of her strategies and the key strategy Lady Gaga realized
was using all the current social networking sites and integration of that with
her fashion that has made her an all-around entity. She has more than 10
million Twitter fans and 30 million Facebook fans that clearly resemble her
influence in the industry.
Some of her major and
clever strategies are:
1.
Music
There are some
of the passionate followers of Gaga and some think that the music is a waste
but whatever people say, it is a known fact that her songs are very impressive
that always makes an impact on individuals even in the first time you hear it.
Some people are impressed by her piano skills that are a very difficult thing
to master at.
2.
Her fashion sense
In modern times,
she is one of the few celebrities who have the guts to carry off an
unconventional fashion sense and proudly flaunt it. She is one of the few stars
who can cope with blood smeared performance and also wear a bubble dress or wear
a “meat dress”.
3.
Philanthropic activities
She has always
been a controversial figure in media and also a regular feature in the local
tabloids. Gaga has managed to keep it apart by indulging herself in various
philanthropic activities as being an influential advocate of LGBT movement. She
also holds concerts so as to help afflicted and needy people.
4.
Controversies
Controversies
have been one of the major sources where she got her stardom from. She has been
engaged in many controversies and she has the capacity to turn it in favor of
her star image.
5.
Her love towards her fans
Every artist is
made popular by his/her fans and so is Lady Gaga. What sets her apart then?
Well, it is her love for her fans. Lady Gaga calls her fans “little monsters”.
In order to reveal her love for her admirers, she has inscribed these words on
a tattoo placed on the arm which she uses to hold her microphone.
6.
Her tweets
Lady Gaga is
one of the most popular celebrity tweeters on Twitter. Her tweets usually
comprise her views about music, her latest albums and tidbits about her
personal life which makes her fans feel close to her.
7.
Earrings
Lady
Gaga became the talk of the town when Forbes magazine ranked her 4th in the
list of Hollywood’s highest paid female celebrities. The Lady has earned around
$62 million in the previous year by way of 106 concerts and by endorsing some
of the biggest names in the ad world. (MAG FOR WOMEN, 2013)
The
music Gaga makes is itself a strategy and she has been successful worldwide for
that. The song she writes, the production she has are all brilliantly
contemporary and she is literally with time turning into a global superstar. (Bailey, 19
May 2011)
If I was to advise her on her future
strategy, the analysis I would undertake is market analysis and the competitor
analysis and porter’s five forces model. I would use 7 M of market analysis as
well as the present trend of Gaga’s fan following. Then I would use a
Competitor analysis to distinguish her from other and then do an analysis of
KSF for Gaga’s success till date.
However
according to the critics, she is way behind when it comes to creativity which I
disagree but still we can carry out an internal analysis to use some of the
best skills she has got in the industry.
Visibility:
Gaga is a famous pop star and her first solo “the fame” made 10 million copies
of sale and is still growing. She has been well known all over the world for
her extraordinary talents on the aspects of piano, song lyrics and
performances.
Credibility:
she is talented and hardworking at the same time. She is a determined person
and this contributes to her success factor. In real she is a very passionate
person with an honest and straight forward nature but in the business aspect
she is a real player.
Expertise:
technically she is an expert whether it’s piano or performances and has a very
clever eye for attracting and impressing her audience.
Attractiveness:
she is one of the few celebs who can easily attract any eye wither with her
unique fashion sense or her catchy lyrics. Her fan base literally reflects her
attractiveness.
Power:
Gaga has already shown her talent and expertise in the industry and has sold
albums that strengthened the industry in many ways. She is a very powerful
image in the music industry.
Advices that I would
give to Gaga would be to keep up with the controversial image of hers as it is
working perfectly fine for her. She can move on an open her own line of
different clothing, accessories, perfumes, gadget covers, may be her own
stylish cell phones, etc.
She should push all the
boundaries in nearly every dimension and mostly as an extension of her own
instincts. She should never question her bizarre impulses to walk the red
carpet with her crazy and funky styles. (Johnson, April 15, 2013)
References
Bailey, F., 19 May 2011. BBC.co.uk. [Online]
Available at: http://www.bbc.co.uk/news/entertainment-arts-13458791
[Accessed 10 january 2013].
Gergen,
1994. Realities and Relationships: soundings in social construction.
Cambridge: Harvard University Press.
granovetter,
M., 1985. Economic action and social structure: the problem of
embeddedness American Journal of Sociology.
Hamilton,
H.&., 1997a. Journeys in a declining industry. Journal of
organizational Change, 10, pp.61-70.
Huff, A.,
1990. Mapping Strategic Thought. Chinchester: John Wiley & Son.
Jamie
Anderson, J.R.a.M.K., 2013. London Business School. [Online] Available
at: http://bsr.london.edu/lbs-article/724/index.html
[Accessed 7 January 2014].
Johnson, M.,
April 15, 2013. ft.com. [Online] Available at: http://www.ft.com/cms/s/2/da6559ce-a289-11e2-9b70-00144feabdc0.html#axzz2qAOGLZjP
[Accessed 7 January 2014].
Jordan,
R.G.&.J., 2012. Foundations of Strategy. Wiley chapter 10.
m.Parker,
j.H.&., 1993. Postmodernism and Organizations. London: Sage
Publications.
MAG FOR
WOMEN, 2013. MAG FOR WOMEN. [Online] Available at: http://www.magforwomen.com/6-reasons-why-lady-gaga-is-so-popular/
[Accessed 8 January 2014].
OCD TETRIS,
2013. http://ocdtetris.wordpress.com/. [Online] Available at: http://ocdtetris.wordpress.com/2010/03/27/lady-gaga-why-so-successful/
[Accessed 6 January 2014].
Richard
D'Aveni, J.S.&.W., 2007. In Exploring corporate strategy. p.239.
Willianson,
O., 1991. Strategizing, economizing, and economic organization. Strategic
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