Learning Journal Week 21
What are the benefits and drawbacks of taking an emergent approach to strategy making?
What are the benefits and drawbacks of taking an emergent approach to strategy making?
"An
emergent strategy is a pattern of action that develops over time in an
organization in the absence of a specific mission and goals, or despite a mission
and goals." Planning Skills
In
other words Emergent Strategy is a constant action which is unplanned manner without
the goal oriented or intended for initial planning stage.
Advantages
of Emergent strategy are:
·
The strategy arises from individuals in
an organization responding directly to the market forces.
·
It helps organization to develop
solution to the problems that are on the long run.
·
It leads to organization to provide the
market actual need and wants.
·
Effective use of informal communication
which helps to increase the ideas within themselves.
·
It does require to organization maintain
the flexibility particularly at executive level.
Disadvantage
of Emergent strategy are:
·
Due to emergent strategy the business
could decline because it may depend to develop the strategy.
·
It does not provide genuine alternative.
·
Serves to match and serve as a
corrective measure for deliberative strategy.
2.
Did Honda Entry strategy demonstrate the characteristics of ‘logical
incrementalism’?
“A management philosophy which states that strategies do
not come into existence based on a one time decision but rather, it exists
through making small decisions that
is evaluated periodically. These small decisions are not made randomly but
logically through experimentation and learning.”
Business Dictionary
In
other words a management philosophy in achieving the organizational goal by
making effective strategic decision over the period of time in a small portion.
It helps to resolve the conflict and is flexible but time consuming.
Yes, as per the case study Honda's entry
demonstrate the characteristics of Logical incrementalism.
·
In
1960 Honda export was only 4% however mass production was applied to reduce the
cost of production.
·
Honda in 1961 invested on their regional
advertisement theme “ you meet the nicest people on Honda” all over the distribution area.
·
USA had limited people who were
attracted toward the use of motorbike. Honda
experiment their product naming “ American Honda Motor company” at the
complicated time when motorbike was losing the market.
·
Honda later used the emergent strategy ,
in which fulfilling the demand of the customer on the light weight products by
which the sales level also increased tremendously.
·
The sales of company increase to 77
million by 1965. Slowly company’s share started to increase to 60%.
·
Honda motorbike had been experiencing
the hard time during the years where the business went extremely well in the
USA.
·
After Struggling for many year s finally
the they found a suitable environment to sell the motorbike where there was
growing demand and user i.e. Los
Angeles.
In
my opinion Honda has followed the “logical incrementalism.
Reference:
Planning
Skills. Emergent Stratgent.(Online) Available at:< http://planningskills.com/glossary/154.php> > [Accessed
on: 17 April 2013]
Lynch,R (2012)
Strategic Management 6th Edition, chapter 2
Business dictionary., Emergent strategy. [Online] Available
at:< http://www.businessdictionary.com/definition/emergent-strategy.html> [Accessed
on: 17 April 2013]
Johnson,
Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson
Education, Chapter 12
Business dictionary., logical incrementalism. [Online]
Available at:< http://www.businessdictionary.com/definition/logical-incrementalism.html > [Accessed
on: 17 April 2013]
Lynch, R (2011)
Strategic Management, 6th Edition, Pearson Education, Chapter 1
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