Strategic Management: Strategies, Deliberate Or Emergent

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ARAB OPEN UNIVERSITY
FACULTY OF BUSINESS STUDIES
(MBA) B 820 _ STRATEGY (TMA ONE)_ TUTOR MARKING ASSESSMENT _ Fall, 2014
TMA ONE: Answer
Bader Abdullah AL-Sumri (130348)

Question 1: strategies, deliberate or emergent

1) Introduction
Planning, and particularly strategic planning, has been characterized as a learning process. However, in practice, the extent to which strategic planning constitutes a learning process seems to vary widely. Some authors argue that formalized strategic planning processes discourage learning and may thus be counterproductive to the effectiveness of planning. Despite the importance of strategic planning for management, little empirical evidence has been
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It can thus be seen as “a process by which managers discover where they are, where they want to go, how they believe they might get there, if they are getting there, and, as they proceed, if they still want to get there”. To do this efficiently and effectively, planning must take into account both the company’s complexity and its relevant environment. It does so in many ways, which include forming different levels of planning.
Effectiveness of anticipation: The starting point for strategic planning is anticipating an action. The results of this process are plans (outcome-based instructions). The effectiveness of anticipation indicates whether planning is pointed in the right direction.
Effectiveness of implementation: To put strategic plans into practice, the plans must be coordinated and communicated to executives in an appropriate way. Here, “implementation” refers to all such measures within the context of the strategic planning process. The effectiveness of implementation describes to what extent objectives, which were anticipated during the planning process, are actually
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Will start with application of Michael Porter’s generic strategies to ‘Affordable sky’ (a new, no Frills airline) which is about to enter the U.S. market. Second we will try to work as a consultant for Affordable Sky’ airline, and based on the above excerpts about the airline industry, will try to choose the suitable entry strategy for this new company to adopt and we will try to explain why, finally we will discuss which diversification strategies or alternatives we may suggest and why? Also, explaining why we would advise Affordable Sky against having a joint venture with another established airline company. The question headed with this statement: ‘Recently, the growth and profitability of commercial air carriers in the USA has been impacted by many external factors. This industry saw four major players (United, US Airways, Delta, and Northwest) file for bankruptcy protection in the last decade or so. With a rise in fuel prices and environmental factors (such as terrorist threats) reducing air travel, airlines continue to struggle. In union environments, where staff (like pilots and flight attendance) is heavily unionized, the industry has not been able to cut their labor costs. New low-cost industry entrants are adding to the pressure the traditional

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