Whittington what is strategy and does it matter pdf

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whittington what is strategy and does it matter pdf

What is Strategy and Does It Matter | Strategic Management | Evolution

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Published 06.01.2019

Strategic Management

1993 What is Strategy and Does It Matter

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This paper identies a practice turn in current strategy research, treating strategy as something people do. However, it argues that this turn is incomplete in that researchers currently concentrate either on strategy activity at the intra-organizational level or on the aggregate effects of this activity at the extra-organizational level. The paper proposes a framework for strategy research that integrates these two levels based on the three concepts of strategy praxis, strategy practices and strategy practitioners.
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The Classical Approach to Strategy According to Whittington, for classicists profitability is the highest goal of business and rational planning as the means to attain it. Whittington quoted Alfred Sloan, former President of General Motors, who laid out the cornerstone for the Classical strategy based on profit. In his biography My Years with General Motors he said: The strategic aim of a business is to earn a return on capital, and if in any particular case the return in the long run is not satisfactory, the deficiency should be corrected or the activity abandoned. Evolutionary Approach on Strategy Evolutionary approaches do not rely on top managements skill to plan and act rationally. Instead of depending on managers, they believe that markets will determine profit maximization and not the managers. Whatever methods the managers will adopt, the best performance will be the ones that survive. Rational methods are not the basis for this approach because it is evolution thatis natures cost-benefit analysis Einhorn and Hogarth

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    heavenlybells.org | Strategic Management | Theory

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