The Classification of Strategies are based on Course correction, Levels of strategic decision and Management action undertaken.
Mintzberg’s Types of Strategies
Mintzberg's
view of strategy is based on Strategy Formulation and Course Correction during its implementation and has at least two implications. First, strategy is not one
decision but must be viewed in the context of a number of decisions and the
consistency among them. Second, the concept means that the organization must be
constantly aware of decision alternatives.
Strategy
may be viewed as the rationale that governs the organization's choices among
its alternatives. Traditionally, strategy has been viewed as simply a result of
the planning process. A company's goals are set in motion, and its intended
strategy is undertaken to achieve them
Alterations in goals and "course corrections" may produce strategies that vary from their original design. For these reasons, the study of strategy must extend beyond study of the planning process. However, deliberate and emergent strategies may conceived as two ends of a continuum along which real-world strategies lie.
An intended strategy is
the strategy that an organization hopes to execute. Intended strategies are
usually described in detail within an organization’s strategic plan. When a
strategic plan is created for a new venture, it is called a business plan.
An emergent strategy is an unplanned strategy that arises in
response to unexpected opportunities and challenges. Sometimes emergent
strategies result in disasters.
Tata
Chemicals was set up in 1939 with a soda ash plant in Mithapur. And in the late
1970s, when availability of fresh water for its boilers became scarce, it took
a decision to generate the same using sea water. This desalination yielded a
natural byproduct — salt of excellent quality and high purity.
Although
the Mithapur Salt Works was developed in 1979, it was only in 1983 that Tata
Salt was launched. It was the first company to use vacuum-evaporated technology
for boiling sea brine and evaporating it in steam-heated vacuum evaporators, to
produce salt. This process helped in developing salt that was free of
impurities, with a fine, uniform feel and consistent saltiness. It was priced
higher than the unpacked, non-iodised, salt available in the market then, but
it immediately caught the public eye as it increased the flavour of food and
controlled the growth of micro-organisms.
From a cost point of view, Mithapur has a unique advantage of having its own captive salt works and a power plant. But this region being arid means water is a scarce commodity. To become self-sufficient on water, they set up a make-up water plant where condensate is a product and salt is a by-product. In the recent past, the growth of salt has been phenomenal and that helps tehm retain their market leadership. The growth of salt reflects environmental considerations. A tonne of salt produces one-third the CO2 of a tonne of soda ash.
That's why they have invested in new salt capacity. The new plant allows them to make an additional 900 tonnes per day of salt. It also gives them 4,500m3 per day of high quality water.
A realized strategy is
the strategy that an organization actually follows. Realized strategies are a
product of a firm’s intended strategy (i.e., what the firm planned to do), the
firm’s deliberate strategy (i.e., the parts of the
intended strategy that the firm continues to pursue over time), and its
emergent strategy (i.e., what the firm did in reaction to unexpected
opportunities and challenges).
In other cases, firms’ original intended strategies are long forgotten. A nonrealized strategy refers
to the abandoned parts of the intended strategy. When aspiring author David
McConnell was struggling to sell his books, he decided to offer complimentary
perfume as a sales gimmick. McConnell’s books never did escape the stench of
failure, but his perfumes soon took on the sweet smell of success. The
California Perfume Company was formed to market the perfumes; this firm evolved
into the personal care products juggernaut known subsequently as Avon. For McConnell,
his dream to be a successful writer was a nonrealized strategy, but through
Avon, a successful realized strategy was driven almost entirely by
opportunistically capitalizing on change through emergent strategy.
Strategies are also classified based on levels at which decisions are taken viz.., Corporate Level, Business Unit Level, Functional Level and Operational Level strategies.
The different types of corporate-level strategies that you can employ:
· Stability strategy
· Expansion strategy
· Retrenchment strategy
· Combination strategy
· Diversification
· Forward or backward integration
· Horizontal integration
· Profit
For increasing your value to your customers or stakeholders, you need to create something better or different than your competitors. You do this by leveraging your existing strengths — or developing new ones — in the following three ways:
· Using operational excellence to provide lowest total cost
· Using continued innovation to provide product or service leadership
· Providing complete customer intimacy by knowing their needs and wants
Strengths usually fall into two broad categories: cost advantage and differentiation. When you apply these strengths to a market that’s either large and varied or small and homogeneous in its needs, three basic strategies result, as indicated by italics in the preceding list.
Corporate and Business strategies give birth to functional strategies, which are implemented in the organization through functional and operational implementation. These strategies specify the outcomes you want to see achieved from the daily operations of specific departments (or functions) of your business.
Another classification is based on management action undertaken: Dominance, Innovation, Growth and Cooperative strategies.
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