Tag Archives: Rational-Planning

The Formation of Strategy (Published)

The formation of strategy has been described to stem from detailed rational-planning, the theory of planned strategy suggest that strategy always originates from formal plans and specific intentions, designed and articulated by the firm’s central leadership, supported by official controls in order to ensure a predictable or a controllable business environment. This paper review the submissions of leading critics who have categorised strategy into three (3), intended, emergent and realised strategies. Intended strategy is created at top management level, emergent strategy points to the decisions that emanate from the intricate processes in the firm and realised strategy is the actual strategy which is implemented, and only partly associated with the intended strategy from top management. Thus, as a result of global competition, organisations are forced to make dynamic decisions in order to strategically realign themselves within the business environment. The break-through of IKEA and WAL-MART were discoursed. These two organisations have become sensations around the world, however the intended strategy was not the major reason for their huge success. Arguments presented suggest that strategy is developed through adaptation, as well as adjustment to varied conditions. Therefore, the paper concluded that: since strategy is a process which involves continuous adaptation and adjustment to the changing environment, then it is unrealistic for it to be detailed and follow a rational process.

Keywords: Emergent Strategy, Global Competition, Intended Strategy, Rational-Planning, Realised Strategy, Strategically Realign, Strategy