Balancing between Planned and Emergent Approaches to Business and Marketing Strategy - Term Paper Example

Planned and Emergent Approaches to Strategy by [Name] [Course] [Professor’s Name] [Institution] [Location of the School] [Date] Planned and Emergent Approaches to Strategy Introduction Planning refers to the process of brainstorming, designing, and organizing the most important activities which are necessary towards the achievement of the desired goals. The process does, therefore, involve the devising, implementation, and maintenance of a strategy which is in line with the goals and objectives of the organization. In this regard, planning processes are considered to be fundamental properties of the stakeholders’ intelligent behavior (Cunningham & Harney 2012, 13). An aforethought process is important since it facilitates the preparation of a strategic policy, or the integration of a strategic policy with other types of plans. Plans can, therefore, be considered to be the representatives of combined forecasted developments which facilitate the preparation of various types of scenarios. Plans do also present the manner in which the organization ought to react to the scenarios in question (Burnett 2010, 43). An important aspect which is usually ignored during planning processes is the connection between forecasting and planning. While forecasting predicts how the market’s future will be, planning predicts how the future ought to be. Managers do appreciate that planning cannot succeed without regard for spontaneous order. This paper does, therefore, endeavor to establish the connection between the planned and emergent approaches to strategy as well as why it is important to strike the balance between the two. The paper addresses each of the two approaches in depth, and then it explicates the value of having an integrated approach (Cunningham & Harney 2012, 17). Planned Approach to Business and Marketing Strategy A planned approach is where the strategist determines the mission and vision of the organization in an endeavor to facilitate the achievement of the strategic goals and objectives in a timely manner. Research studies have established that the understanding of strategic planning is important as it enables organizations to achieve competitive advantages in a sustainable manner. In that case, it proves to be important for stakeholders to know the advantages and disadvantages of this approach so as to establish when it is most appropriate to implement them. The understanding does also enable the stakeholders to figure-out what to expect once the approach is implemented (Burnett 2010, 46). According to Nallebuff and Brandenburger (2011), the overall analysis of the approach indicates that it has more advantages than limitations. In this regard, this section lists and explains five main advantages and three main disadvantages. There are other advantages and disadvantages of this approach. However, by discussing the main issues, the approach will be appropriately understood (Nallebuff & Brandenburger 2011, 30; Schuler & Jackson 2007, 76). Advantages of the Planned Approach One of the main objectives of the planned approach is to enhance collaboration amongst the functional managers. The approach facilitates this by prompting effective communication amongst managers as well as between the managers and the rest of the workforce. By communication, stakeholders are able to achieve synergism and various sections of a business organization work for a common goal (Schuler & Jackson 2007, 76). Nallebuff and Brandenburger (2011) argue that managers in human resource, operations, marketing, and finance departments have equal importance. In spite of that fact, it has been proved that there are times when they engage in useless competition instead of collaborating. The situation gets worse when these departments operate with separate command structures of the subordinate staff. Planned approach to business and marketing does readily facilitate the cooperation and collaboration amongst the different sections of management (Schuler & Jackson 2007, 77). The second advantage of the planned approach is that it facilitates the identification of the strategic intent and the strategic goals of the organization. The third advantage is that the planned approach reduces the stakeholders’ resistance to change. The strategic planner’s obligation is to inform the management as well as the entire organization of the company’s plans, strategic changes, their current, and their situational implications. The planner does, therefore, enable the stakeholders to establish the changes which need to be done so as to achieve the strategic goals and objectives of the organization. In this regard, the approach does reduce uncertainty with the future (Honigmann 2007, 36). Fourthly, the planned approach enhances resource allocation. This is important since new products and services, goals and objectives, as well as strategies necessitate resource allocation. Such resource allocation is accomplished with ease when endeavor is aligned with the organization’s strategic plan. Nallebuff and Brandenburger see the planned approach as one that facilitates the sustainability of the organization’s competitive advantage. Although competitive advantage may at times be achieved in absence of a strategic plan, sustainability can only be achieved with the stakeholders coming up with a strategic plan (Pickup 2012, 63). Disadvantages of the Planned Approach Planned approaches prove to be costly where medium and small businesses are involved. Indeed, planning strategically, especially with regard to marketing and human resource management, causes organizations to incur huge amounts of resources. For instance, strategic planners and competent managers have to be contracted, and resources have to be allocated for the purpose of facilitating the analysis of both internal as well as external environments. For that purpose, specialized tools must be designed so as to facilitate an appropriate implementation of the strategic plans. Although such expenses have to be incurred by organizations at some instances, the best way to avoid wasting resources is to utilize an integration of the two strategies (Pickup 2012, 63). The planned approach has been found to be extremely complex. The process of strategic planning involves several steps, and the said steps are usually connected with each other. They must also be adjusted constantly, and this means that an organization has to budget for a recurrent expense on planning. The organization cannot prevent the occurrence of a number of unexpected factors, and this means that they may be forced to alter the entire strategy resulting into huge losses (Nilsson & Rapp 2005, 56). Research has indicated that there is a low success rate when it comes to the implementation of preplanned strategies. The heavy commitment and extreme complexity associated with strategic goals makes the implementation of strategic plans rarely successful. Although it has been established that poor implementation is among the causes of failure, rigid strategic goals and operational misalignment are the main causes of failure (Pickup 2012, 61). Emergent Approach to Business and Marketing Strategy Research studies have indicated that even some of the carefully planned strategies may fail due to unexpected results. Emergent strategy refers to the process through which unexpected outcomes are identified. The emergent approach, which commonly utilizes intervention techniques to tackle unexpected occurrences, does then emphasize on learning how to integrate the unexpected results into the corporate plans of the future. According to Jaworski, one of the strategies which are thought to have positive outcome is the use of social media in an endeavor to enhance marketing plans. In fact, the use of such media may be a significant section of the comprehensive program of marketing. If the social media aspect of marketing results into sudden success, then it becomes part of the emergent strategy. As such, it would be necessary to have it addressed. As is the case with all corporate planning strategies, the emergent methodology has its unique pros and cons (Boje 2012, 23). Although the emergent strategy may be designed in a manner that addresses challenges, it may also be utilized in capitalizing on the market benefits which are unexpected. One main advantage of utilizing the emergent approach is that the strategy would be an aspect that the organization discovers before the factors associated with competition do. The emergent approach has unique characteristics, and these characteristics include product development, tangents, as well as inappropriate planning (Boje 2012, 23). The emergent approach is considered to be critical with regard to technological advancement, more so at the marketplace. Every time organizations develop and refine the products they hope to offer in the market, they seek to come up with new features. These are the features which enable the products to have a competitive edge in the market, irrespective of rivalry from the existing firms or new entrants. Organizations endeavors to utilize emergent strategy enable them to capture and implement product developments which then make them technological leaders within their respective industries (Boje 2012, 27). Balancing between a Planned and Emergent to Business Strategy The act of balancing between the planned and emergent approaches to business strategy facilitates the meeting of strategic goals and objectives. According to Jaworski, unexpected developments tend to arise even when the organization has come up with the most appropriate strategic policy. These are the developments which have the capacity to instigate a change in operation in the future. In this regard, the organization ought to consider the emergent approach with the seriousness it deserves so as to address the dynamic market forces with precision. The originally designed strategic plan ought to be the blueprint for operations. An organization must have a planned strategy upon which to base operations in cases where dynamism is not experienced. The emergent approach should supplement that strategic plan, and that is why it is important to utilize an integration of both the planned and the emergent approaches (Nilsson & Rapp 2005, 56). Balancing between the two facilitates the cushioning of an organization against turbulence in the market as it seeks to meet its strategic objectives. With regard to the above discussion, balancing the two strategies enable an organization to refocus its resources and time. This ensures that all the stakeholders are geared towards the achievement of the same goals. The organization is also in a position to assess as well as adjust its direction based on the current situation in the market. In essence, balancing facilitates the making of fundamental decisions which then shape the future of the organization. Whenever an organization focuses on the emergent strategy continually, especially while trying to capture the ideas which could usher in success, the most significant elements in strategic planning may go off the course. This may end up creating a set of challenges which is entirely new, and the organization may not have anticipated it. Emergent strategies should, therefore, be carefully analyzed so as to facilitate an effective assimilation into the already laid down strategic plans (Nilsson & Rapp 2005, 57). According to Jaworski, the emergent approaches do not occur merely through accident. For there to be positive results, the organization must have a strategic plan. The plan is what determines the direction that the organization out to take. A strategy must be in place so as to take advantage of the benefits as soon as they are discovered. The strategy should also facilitate the evaluation of whether the benefits ought to be researched further (Burnes 2008, 95). Jaworski has made a distinction between the emergent and the deliberate strategy. According to him, the emergent strategy does originate during the organization’s interaction with the environment. This means that it is not always in the strategist’s mind. Emergent strategies exhibit a level of convergence where actions and ideas from multiple sources are integrated into patterns which are effective for the achievement of the strategic goals (Burnes 2008, 95). Conclusion and Recommendation Achieving and maintaining a competitive advantage is important for organizations. Rothaermel has indicated that organizations which achieve competitive advantage are able to perform better in terms of finances and profitability than those which perform and retain their average performance. Some companies may achieve this even without having a thoroughly strategic plans. Nonetheless, most organizations consider it to be vital to come up with strategic plans and policies (Honigmann 2007, 34). While it is not automatic for strategic plans to lead to competitive advantage, organizations that wish to sustain such an advantage have to lay down strategies for the future. This shows that there is need to have an integrated strategy where planned and emergent approaches come into play. According to Jaworski, it is important to allow room for unexpected developments. The organization’s command structure ought not to be so rigidly attached to a single plan since the failure of such a plan would be catastrophic (Burnett 2010, 46). Viewing issues from a broader perspective is important for the organizations to exploit all the opportunities which come along its way. A combined approach proves to be superior since the future of a market cannot be defined with certainty. There must be an adequate room for unexpected developments so that when disturbances occur, the organization has a fall back. It can then modify its strategic policy accordingly so as to align activities with the latest developments (Nilsson & Rapp 2005, 57). List of References Boje, DM (2012), The Routledge companion to organizational change, Oxon: Routledge, pp 23, 27 Burnes, B (2008), Managing change: a strategic approach to organizational dynamics (3rd ed.), Harlowe, England: Financial Times/Prentice Hall, pp 95, 99 Burnett, K (2010), Relationship fundraising: a donor-based approach to the business of raising money (2nd ed.), San Francisco, CA: Jossey-Bass, pp 43-46 Cunningham, J & Harney, B (2012), Strategy & strategists, Oxford: Oxford University Press, pp 13-17 Honigmann, EJ (2007), Buying and selling a small business: an entrepreneurial strategy for success, New York: Monnet Press, pp 34-36 Nallebuff, BJ & Brandenburger, AM (2011), Co-Opetition, New York: Crown Publishing Group, pp 30-33 Nilsson, F & Rapp, B (2005), Understanding competitive advantage the importance of strategic congruence and integrated control, Berlin: Springer, pp 56-58 Pickup, SL (2012), Air Force training actions needed to better manage and determine costs of virtual training efforts: report to congressional committees, Washington, D.C.: U.S. Govt. Accountability Office, pp 61-63 Schuler, RS & Jackson, SE (2007), Strategic human resource management (2nd ed.), Malden, MA: Blackwell, 76-79 Read More