Question1 Explain the advantages and disadvantages of Henry Mintzberg’s prescriptive schools of strategy
Design school
The process of conception is using the major idea of SWOT which divided into two sides; internal (strength and weakness) and external (opportunity and threat) factors. Social responsibility and Managerial values also play a role in the formulation of the strategy. When the four factors is analyzed, the next step is creation of strategy which is suitable to organization and final stage is implementation follow by that strategy.
Advantages:
-Separate the step between design strategy and implementation clearly
-This strategy is simple and explicit which is the method of detaching
-Listing strength can help to limit distinctive
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This school apply SWOT analysis which is the important factor for making strategy by using 7s model of Mckinsey for internal analysis and using PEST model for external analysis. This strategy suit with stable situation only. Employee within organization have to ready follow strategy which manager thought only because employees do not receive opportunity for making strategy. As a result, employees will resist to organization and if organization need to success in business, it should have only employee who obey to order of organization. This strategy is an environment which is not fit to current situation, so it should apply to study for base of …show more content…
Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market.
Advantages:
-Provide content in a systematic way to the existing way of looking at strategy
-Particularly useful in early stage of strategy development, when date is analyzed
-This school emphasis on analysis and calculation can be a very strong support to the strategy development process
-This strategy suit with big businesses or organization which have ability for operate effective market research in the environment