Developing a Business Strategy - Explained
How to Develop a Business Strategy
Written by J. Mance Gordon
Updated at April 21st, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
How do Managers Develop or Formulate a Business Strategy?
The preeminent scholar in this regard is Henry Mintzberg. In 1998, Mintzberg proposed that the practice of strategic management observes three main perspectives (or ―streams).
Within these streams there are a total of ten different schools of thought concerning how strategist perceive the creation of strategy.
The Prescriptive Perspective
- Prescriptive Design School
- Planning School
- Positioning School
The Describing Perspective
- Entrepreneurial School
- Cognitive School
- Learning School
- Power School
- Cultural School
- Environmental School
The Configuration Perspective
- Configuration School
Mintzberg further proposed the 5 Ps of Strategy to provide parameters for how managers define or see strategy. Mintzberg proposed that strategies can be seen as a:
• Plan
• Ploy
• Pattern
• Position
• Perspective
Mintzberg further broke down strategic formulation into 4 categories:
• Intended
• Deliberate
• Realized
• Emergent
Each category helps to bridge the understanding between how strategies is formulated and how it is ultimately carried out.
Related Topics
- How Strategies Arise
- Intended, Deliberate, Realized, and Emergent Strategies
- Management and Strategic Planning
- Mintzberg's Schools of Strategic Development
- Design School
- Planning School
- Positioning School
- Entrepreneurial School
- Cognitive School
- Learning School
- Power School
- Culture School
- Environmental School
- Configuration School
- Mintzberg's 5Ps of Strategy
- McKinseys 7s Model
- ***Industry Analysis to Build a Strategy***
- Strategic Analysis
- SWOT Analysis
- SPACE Analysis
- Situational Analysis - 7C
- Competition Profile Matrix
- Stakeholder Analysis
- Stakeholder Mapping
- Resources and Capabilities
- VMOST
- Core Competency
- VRIO Analysis
- Value Chain Analysis
- Internal Factor Analysis
- Value Creation Index
- Minimum Efficient Scale
- PEST(LE) Analysis
- Industry Lifecycle Analysis
- Company Lifecycle - Definition
- Porter's Five Forces
- Modes of Management
- External Factor Evaluation
- Business Performance Measurement
- Benchmarking
- Balanced Scorecard
- Economic Value Added
- Activity-Based Management
- Quality Management
- Action Profit Linkage Model
- Business Activity Monitoring
- Gap Analysis
- Strategy Diamond
- BCG Growth-Share Matrix
- GE McKinsey Matrix
- Value Reporting Framework
- Pyrrhic Victory