Since the late 1940s a number of management techniques have been in use. These techniques include quality management, analysis of economic value, downsizing of production, outsourcing, benchmarking etc. all these management tools are very powerful. But the interesting thing associated with these tools is that all these tools have been designed to do differently than what has been done. (Drucker, 1994, p. 1) Thus a prime challenge for the management has become what to do exactly with these tools.
Things have become more critical for large firms which seek long term success. In this context it is necessary to have a clear strategy. Business policies very often regard environments of the organization as exogenous entities that behave like external constraints which are needed to be eliminated through proper strategic action. Thus strategic management is considered to be an adventure in which firms evade threats and make use of the opportunities.
A. What is a strategy? The definition of a strategy involves five Ps- plan, ploy, pattern, position, and perspective (Mintzberg, 1987, p. 11) B. Why strategies are required for a firm? A firm needs strategy for the following reasons- i. setting direction for themselves. ii. focusing efforts and promoting coordination of activities. iii. defining the organization. iv. reducing uncertainty and providing consistency. (Mintzberg, 1987, p. 25-31) C.
Objective of the paper: On the basis of the above discussion it becomes clear that strategies are very important for a firm to perform well. Hence, strategy management has become key to success of a firm. Now there exists a number of schools and approaches of strategy management. Here, focus will be placed on some of the classical schools and approaches of strategic thinking. Thus objective of this paper is to explore classical schools and approaches of strategic thinking.Sample Essay of StudyFaq.com