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Prescriptive Approach to Business Strategy Formulation - Essay Example

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This essay explores various aspects of the practical application of the prescriptive strategies in modern management. Prescriptive strategy implies that the objectives are stated in advance and the critical elements of the strategy have been formulated before the implementation of the strategy…
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Prescriptive Approach to Business Strategy Formulation
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Marketing Table of Contents Marketing Table of Contents 2 Introduction 3 Main Body 3 Conclusions 4 References 6 Introduction The present day business environment is largely characterized by the large scale fluctuations and turbulence in the business environment. This has called for an immediate need for business organizations to develop a strategic framework that seeks to generate competitive advantage. Prescriptive strategy is defined as a business strategy in which the objectives of the organization are stated in advance and the critical elements of the strategy have been formulated before the actual implementation of the strategy. The theoretical aspect of this strategy is based on the aspect that adopting a rational and factual analysis of the strategic options leads to generation of the best output (Lynch, 2007, p.527). Main Body Prescriptive strategy is largely being rated by scholars and business strategists as a top down approach. Prescriptive strategies are usually framed by the top management and are largely applicable in stable business environments. These strategies are increasingly employed when customers have low bargaining power and it is easy to predict customer’s moves and motives. This strategy therefore cannot be used in times of turbulence when the competition is intense and the consumer behavior is largely unpredictable. Moreover since the top management is the sole decision maker in the prescriptive strategy making process hence the decision maker is largely segregated from the target market that makes these strategies largely ineffective in turbulent and fluctuating business environment. Prescriptive strategies normally are effective during stable conditions when the situations are largely stable and the market behavior can be easily analyzed. (Gronfeldt & Strother, 2006, p.71). An example in this regard would be the IT implementation in California’s department of motor vehicles when its top management decided to undertake a massive computerization of the department. Since the top management was largely unaware about the end user status hence the prescriptive strategy was a massive failure (Condrey, 2010, p.226). A very contrasting approach can be traced to the emergent strategies that are defined as those strategies that are derived from the basic and grass root levels in an organization. These strategies are largely based on the actual activities of the organization as opposed to the prescriptive school of thought that lays stress on the intended strategies. Unlike the prescriptive school of thought the emergent strategies largely follow a bottom up approach that makes it viable in instances of turbulent business environments. An example in this regard can be traced to Honda Motors strategy adopted in the initial years in the USA when it entered the US market with its traditional 250 and 305 cc motorbikes but did not launch the 50 cc motor bikes as the company did not find any valuable market for these bikes in the US market. However ground inspection revealed that these bikes had very good potential. Subsequent launch of this vehicle yielded marvelous results for the company (Noe et.al, 2007, p.80). This shows how a bottom up strategy like an emergent strategy can be beneficial in times of turbulence in the business markets. Conclusions The analysis of the topic of study reveals that while prescriptive strategies may be beneficial in times of stable business environments however the emergent strategy framework with its bottom up approach and flexible nature scores well above the prescriptive approach in times of turbulence in the business markets. The emergent approach also scores over the prescriptive approach over the aspect of including the bottom line and the grass root level in strategy formulation that is believed to have a critical influence on the success of business organizations in the turbulent and competitive business environment. References Condrey, S.E. (2010). Handbook of Human Resource Management in Government. John Wiley and Sons. Gronfeldt, S. & Strother, J.B. (2006). Service leadership: the quest for competitive advantage. SAGE. Lynch, R. (2007). Corporate Strategy. Pearson Education India. Noe et.al. (2007). Human Resource Management (Sie) 5E. Tata McGraw-Hill Education. Read More
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