Thursday, November 30, 2006

Notes: Design School

Design School

Originators: Philip Selznick & Alfred. D. Chandler
Books: Leadership in Administration (1957) Strategy and Structure (1962)
Idiom: “Look before you leap.”

Best Fit

Most key concepts of strategy courses rely on the design school to attempt to match or fit internal abilities with external opportunities. Generation of strategy is seen to be a creative act (Andrews). Alternative strategies are selected and evaluated for best fit with a series of tests (Rumelt).
Overall Strategic Requirements

Consistency: All goals and policies must be mutually agreeable.

Consonance: Choice of strategy must be adaptable to internal and external conditions.

Advantage: Competitive advantage must be realized by the strategy.

Feasibility: Must not exceed current abilities or create new problems.

The SWOT model is a standard approach to external and internal modeling.

Intended Premises
  1. Strategy formation should come from conscious thought.
  2. CEO has responsibility as chief strategist.
  3. Keep model simple and easy to understand.
  4. Strategies should be unique and individually designed.
  5. Design of perspective formulation indicates completeness.
  6. Must be explicit and simple.
  7. Must be fully formulated to be implemented.


Strategy Theory: A Short Review of Literature

Wren Network: Chapter 3 Strategy

Uncertain Economists: Futurity in Strategic Decisions

Mintzberg, Ahlstrand, Lampel (1998) The Strategy Process, Free Press, New York.

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