The process of

strategy definition
and
implementation
Intended Strategy
▸ The strategy created by senior management or consultants
employed by senior management is called Intended
Strategy.
▸ It is based on what the top management thinks about the
future and growth of the firm.
▸ It is a Top-Down approach.
▸ Very difficult to implement intended strategy.
▸ Changing circumstances lead to lower impact of Intended
Strategy.
Example – HUL’s strategy to increase sales through Project
Shakti.

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Emergent Strategy
▸ ‘Emergent Strategy’ is a set of certain consistent pattern of
competitive actions that form an unintended pattern that wasn’t
anticipated or intended in the initial planning phase.
▸ These arise over time as Organizations navigate within their
operating environments. Elements of such a strategy are usually
brought forward by front-line employees of the Organization.
▸ According to Henry Mintzberg “Emergent Strategy is a pattern of
action that develops over time in an Organization in the absence of
or even despite of mission & goals.”
▸ Mintzberg argues that “strategy emerges over time as intentions
collide with & accommodate a changing reality.”

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Emergent Strategy
▸ ‘Emergent Strategy’ is a set of certain consistent pattern of
competitive actions that form an unintended pattern that
wasn’t anticipated or intended in the initial planning phase.
▸ Emergent Strategy is a Bottom-Up approach.
▸ Mintzberg believed that few strategies are purely
deliberate or purely emergent but a mixture of the two:

o one means no control, the other means no learning;

o most strategies are a mixture of both, i.e. exercising
control while fostering learning;
o strategies have to form as well as be formulated.

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The case of Honda

Honda’s
“Supercub” Intended Strategy Emergent Strategy The accidental
motorcycles Setbacks in America success
The bikes gained After a thorough Most motorcycle After the employees’ Honda launched its
popularity as they market research, dealers were unwilling “dirt-biking” stunts new bikes through
could easily maneuver Honda decided to to accept an untested became popular, the sporting goods
through the country’s transform its Supercub product line. Honda employees convinced retailers. Owing to its
congested areas. In motorcycle into a also faced design the management to world class small bike
1959, sales grew to powerful bike for the issues on highway switch strategies and designs, its popularity
300,000 units and the American Market. such as clutch focus on the untested soared. By 1988,
management decided Three employees were problems and oil leaks. market for recreational Honda became the
to target the North sent to Los Angeles to Repairs significantly off-road dirt bikes. dominant brand in
American market. ramp up the marketing drained the company. America.
and sales efforts.

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Resource Allocation
▸ Process through which all the all proposals are evaluated :
To invest capital, talent and other resources to develop
new product, service or process.
▸ Middle Managers play the critical role

Process:

Definition Impetus Structural Measurement

context

Other factors:

 Middle Managers’ Interest  Sales person level

 Executives level/Acquire decisions
companies  Customer Interest
 Build Plants

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Realized Strategy
Emergent strategy itself implies learning what works—taking one action at a time in a
search for that viable pattern or consistency. It is important to remember that emergent
strategy means, not chaos, but unintended order

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Benefits of Emergent Strategy Demerits of Emergent Strategy
▸ ‘Opportunism. Organizations must retain the ▸ The danger of the emergent approach is the
mental freedom to grab unpredictable opportunities possible result in a lack of purpose in strategy and it
as they emerge can make it difficult to evaluate performance.
▸ Flexibility. Organizations must keep their options ▸ When formulation and implementation of strategy
open, by not committing to early to actions and occurs simultaneously there is a risk that strategy
investments. development becomes too slow and jumbled a
▸ process
Learning. Letting strategy emerge provides the
environment to learn. ▸ Emergent approach sometimes can be an
▸ ‘afterthought’, which means valuable opportunities
Entrepreneurship. The best way to find out what
will work is to let people try. This is conducive to an may be missed along the way
entrepreneurial spirit to emerge. ▸ Over-reliance on emergent strategy formation could
▸ result in underperformance.
Building Support. Major strategic change causes
considerable resistance in organizations. So time to
build support for it is important.

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THANK YOU!