Prescriptive And Descriptive Schools Of Thought
Strategic Management: Comparative of Prescriptive and Descriptive Schools of Thought
Submitted by: Sylap Muradov
Submitted on: 15/12/2014
In this paper the distinct differences and some similarities between will between prescriptive and descriptive schools of strategy will be discussed. Firstly, for one to clearly understand the differences regarding these two different schools of thought, we must understand what a strategy is, the different types of strategy levels, and also how different companies manage their strategies differently. According to a publication defining strategic management, “Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.” ( Lumpkin and Taylor, 2005)
When it comes to strategic management it can be broken down into three hierarchical levels of strategy, the corporate level, the business unit level, and finally the functional or departmental level. The main concern of the first level, the corporate level strategy, is to determine and analyse the businesses that in which should compete or cooperate, and with the coordination of that portfolio of companies. A few examples of the strategies on this level would be competitive contact ( determining and localizing the competition), defining corporate responsibilities and identify overall goals, as well as managing activities and business interrelationships. A strategic business unit may be
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