Perspectives in Strategic Management: A Critique of Strategy Safari: The Complete Guide
Perspectives in Strategic Management: A Critique of Strategy Safari: The Complete Guide
Perspectives in Strategic Management: A Critique of Strategy Safari: The Complete Guide
Researchers in strategic management have tried to categorize various streams of thought in this field into
few groups for better assimilation. Strategy Safari: The Complete Guide Through the Wilds of
Strategic Management, by Mintzberg, Ahlstrand and Lampel is one of the outstanding books in this
area which coalesces strategic thinking from 1960s into ten broad schools of thought. The purpose of
this article is to critically analyze this book and to delve deeper so as to gain further insights in different
streams of business strategy. Further, the article also compares different streams of thought presented by
different authors along with the thought process presented in the book.
Introduction
Researchers in strategic management have tried to categorize various streams of thought
in this field into groups for better assimilation (Porter, 1980; Christensen et al., 1982;
Schwenk, 1988; and Mintzberg, 1994). Strategy Safari: The Complete Guide Through the Wilds
of Strategic Management, by Mintzberg, Ahlstrand and Lampel (1998) is an outstanding
work in this area which coalesces strategic thinking from 1960s into 10 broad schools of
thought. Henry Mintzberg is considered as one of the premier management thinkers.
He is the Cleghorn Professor of Management Studies at McGill University and professor
of organization at institut européen d'administration des affaires (INSEAD) in France. He is
the author of several seminal books, like, Mintzberg on Management and The Rise and Fall
of Strategic Planning. Bruce Ahlstrand is a Professor of Management at the Trent University
in Ontario, Canada. He is the author of The Quest for Productivity and co-author of Human
Resource Management in the Multi-Divisional Company. Joseph Lampel is the founding
member of the Institute for Research on Emergent Policy Processes, and a senior Research
Fellow of the International Project in Management of Engineering and Construction.
He is also a Professor of Strategy at City University Business School, London.
The purpose of writing this book was two-fold: to provide a broad view of the process
of strategy formation as the authors narrowly focussed themselves on a single perspective
and to facilitate a guide which will help both the scholars as well as the practitioners,
in understanding distinct points of view in the area of strategy formation. This book is
well conceived and attempts to arrive at consolidated picture comprising all the aspects
of strategy formation. According to them, a strategy is a plan, a pattern, a position, a
perspective and a ploy. In this book, the authors have also justified the significance of
strategic planning for any organization. According to them, setting up of direction, focussing
Perspectives
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A Critique of Strategy Safari: The Complete Guide Through the Wilds of Strategic Management
of effort, defining the organization and providing consistency are the main contributions
that strategic planning makes for an organization.
In this book, the authors have looked at the process of strategy formation from 10
different angles (each termed as a school of thought). Each angle has a unique perspective
that focuses on one major aspect. In addition, the book has been categorized into three
parts. The first three schools are considered as ‘prescriptive’ schools that discuss how a
strategy needs to be formulated, next six schools (4-9) are concerned with a specific aspect
of strategy formation rather than prescribing an ideal strategic behavior, whereas, the
configuration school alone constitutes the third group that integrates the various
elements of strategy formation. The authors have first discussed the various elements in
each of the above schools and then critiqued them by bringing out their pros and cons.
The objective of this paper is to critically analyze the 10 schools of thought as espoused
in this classic book and compare it with similar books in the domain of strategic literature.
Critique
According to the proponents of this school, strategies should be deliberate, responsible
for consciousness and control within an organization, simple and informal, explicit and
unique and fully formulated and ready to be implemented. However, in the dynamic
external environment, which is composed of competitors, government control, suppliers,
customers, etc., as well as internal environment of an organization, following the above
Critique
The formal nature of strategy formulation, control in the hands of a single individual and
separation between formulization and implementation of strategy may result in strategy
being inflexible, predeterminated and detached. The control in the hand of a single
individual (CEO) and separation between formulation and implementation may result in
conflict of interest between the CEO and the stakeholders (mainly implementers that are
employees of the organization). Moreover, formalization of strategy may result in failure to
predict changes in an organization’s environment leading to failure to predict possible
discontinuities that may ultimately lead to what authors have rightly named as, “The Grand
Fallacy of Strategic Planning”. General Electric (GE) was one of the most famous companies
for strategic planning before 1980s. Its annual planning began on January 3 and ended on
December 6 of each year. The top management used to formulate strategy and goals in
general managers meetings that were held between January 3-5 every year. GE’s strategic
planning also included continual review of planning after specified intervals, for example,
review of corporate resources used to take place on June 25. However, this strategic planning
model was dismantled by Jack Welch in early 1980s after he became the Chairman and CEO.
Critique
The positioning school has been criticized on several fronts like its heavy inclination
towards economic and quantifiable approach as opposed to social and political or even any
non-quantifiable approach. This is evident from the emphasis of the majority of strategies
on costs, for example, Boston Consultancy Group (BCG) matrix proposed strategies based
on relative market share and industry growth. It was heavily criticized for its bias towards
big business houses like Ford Motor Corporation, GE, etc., which ensured relative stability
in the environment and its focus towards limited number of generic strategies that
discourage formation of new strategies. Moreover, limiting the number of options available
to the organizations in the form of three generic strategies goes against the concept of
strategy being flexible and unique to an organization as proposed by the design school. This
concept has been criticized by various researchers like Baden and Stopford (1992) and Miller
(1992). These authors questioned the narrow focus of Porter’s concept of generic strategies.
They cited examples of Caterpillar, Benetton and Toyota that became successful without
following Porter’s notion of generic strategies. The success of these companies is not
attributed to following generic strategies, but to following both cost leadership and
differentiation strategies. The success of these firms suggests non-exclusive nature of Porter’s
strategy. In addition, too much emphasis on quantitative methods results in ignorance of
qualitative aspects like power, employee motivation and organizational culture.
Critique
This school has highlighted some of the critical aspects of strategy formation, most
notably the proactive nature and role of personality, leadership and strategic vision.
However, some deficiencies include dependence on single individual and narrow focus of
strategic management, as power is vested with a single individual who might be enmeshed
in operating details and may lose focus of ground realities. In addition, a leader may play
different kinds of roles in an organization. He may be participative, democratic, autocratic,
goal-oriented and situational. This school fails to discuss the above mentioned aspects of
leadership and the types of role a leader must play under any given situation. Moreover,
the authors should also discuss how the separation between formulation and
implementation of strategy need to be dealt with in order to negate the disadvantages
attached to this school of thought. Another critique of this school is that what some
(top management which frames the vision) regard as a ‘vision’ can be seen as a pathology
by others. Further, the vision formulation happens in the start-up firms. Large firms rarely
re-evaluate or reframe their vision (McLarney and Shelley, 1991). Steve Jobs was the
co-founder, chairman and former CEO of Apple. He was a true visionary who created the
first truly personal computer, the Apple, in his garage. From calculating federal taxes to
executing individual business operations, Jobs lead a hardware revolution by reducing the
size of computers to small boxes and introducing them to the masses. He was often
criticized for his aggressive and demanding managerial style that led to his ouster from
Apple in 1985. Jobs’ sacking is attributed to a boardroom coup after his power struggle
with Sculley.
Critique
Rapid changes in the environment require strategies and tactics to be flexible. Every
strategy has some inherent weakness due to the conditions under which it is formulated.
The changes in the above conditions are inevitable. Another important critique of the
learning school is a concept called ‘learning myopia’ characterized by the tendency to
overlook failures, distant futures and distant places (Levinthal and March, 1993).
The Nokia vs. Motorola case is an example in this regard, wherein, the emergence of
digital technology caught Motorola sleeping and Nokia took over as the leader.
The strategy of Motorola revolved around old technology as it refused to take seriously
the inroads of upstart digital competitors. This school offers a counterbalancing force
to rational deliberateness, however, it is not free from criticism. Some researchers have
described learning as purposeless and anti-strategic that may result in tactical
manoeuvering, rather than strategic thinking. According to some, overemphasis on
learning may undermine a coherent and perfectly viable strategy. Some researchers
believe that learning may result in a formation that may no longer be wanted and some
Critique
Power is an important element in the formation of strategy. There are many organizations
where many actors have the power and inclination towards enhancing their own interests
that might lead to conflicts within an organization, thereby resulting in strategic failure.
In addition, by focussing too much on power, other important elements like leadership,
culture, etc., gets sidelined in this school. This school also fails to address the effects of
collusion (of both individuals and groups) within an organization that exist within every
organization due to enduring differences in beliefs, values and interests. However, this
school has broadened the view on strategy formation by introducing terms such as politics,
collusion, coalition, etc., and also highlights the importance of politics in promoting
strategic change.
Critique
To remain existent, this school hypothesizes a continuous change in the environment
to which every organization responds accordingly. However, in reality, if the
environment of an organization is stable all the time, then it is not completely dynamic,
for example, banking industry in India is regulated by norms laid down by RBI. Moreover,
changes normally take place either in a certain aspect of the environment, like
technology or after periodic intervals. The lack of ‘strategic choice’, as suggested by this
school, can be countered with the argument that many organizations survive in the same
environment using different strategies. This school also lays emphasis on the role of
leadership and organization’s structure in the process of strategy formation. There is no
doubt that the role of leaders becomes important in a situation marked by a sudden shift,
as it is their vision that binds the organization and enables it to move forward.
An example in this regard is the stand taken by Ratan Tata regarding the Singur
controversy wherein, in order to protect his employees in the turbulent environment, he
shifted the Tata Nano project elsewhere.
Critique
This school makes an attempt to combine the premises of all the schools and presents an
overall picture of strategy formation. This school has been criticized for its simplicity in
terms of understanding and practice. It can be stated that proponents of this school have
made many assumptions in order to explain complex phenomena that raises questions
about its relevance in practical situations.
Conclusion
Other books in this area include The Rise and fall of Strategic Planning, by Mintzberg and
Good to Great: Why Some Companies Make the Leap...and Others Don’t by Jim Collins.
The former criticized the role of strategic planners in the process of strategy formation.
According to the book, planners need not be strategic planners, but should facilitate
strategy formulators by providing their analysis of numerical data required for strategy
formation. Jim Collins explored the transformation of companies from mediocrity to
excellence and principles associated with this occurrence. According to their book,
phenomena such as technology, mergers and acquisitions, etc., have no role to play in the
above transformation. Greatness of company, is a function of conscious choice and not of
circumstances (a critic of learning school). Moreover, the book also emphasizes the role
that leaders (CEOs) and culture play in facilitating this transformation. This is in
agreement with the entrepreneurial and cultural school of thought.
Concept of Major
Sl. School of Critique
Strategy Major Premises Constructs
No. Thought
Formation
1. The Design Strategy 1. Fit between internal capabilities Unique strategy for every organization sounds
School formation as and external possibilities. logical because every organization has its own
process of 2. Strategy formulation as a deliberate, strengths and weakness. However, frequent
conception informal and explicit effort which changes in structure every time an organization
SWOT Analysis
is unique for every organization. changes its strategy may not auger well for an
organization like in the case of DEC.
3. Strategy precedes structure in every
organization.
2. The Planning Strategy 1. Strategy formulated by specialists. Scenario Planning Strategy based merely on tangibles like hard
School formation as a 2. Strategy formulation as a formal and Strategic numbers and ignoring qualitative aspects like,
formal process process. Control leadership, culture, employee motivation, etc.,
may not reveal the true picture.
3. Separation between strategy formu-
lation and strategy implementation
3. The Positioning Strategy 1. Strategy: A combination of offence Generic Strategies A limited number of options in terms of generic
School formation as and defense. strategies available for an organization go against
an analytical 2. Organizational structure and strategy the premise of a design school. Moreover, it does
process is heavily influenced by industry not explain why different organizations in the same
structure. industry are successful with different structures.
4. The Strategy forma- 1. Strategy formation is dependent on Role of Personality, Leads to dependence on single individual and
Entrepreneurial tion as a the vision of the leader of an Leadership and separates strategy formulation from strategy
School visionary process organization. Strategic Vision implementation.
5. The Cognitive Strategy 1. Strategy formation is a cognitive Cognition as Here, strategy formation depends upon how
School formation as process which deals with how the Confusion, as selected individuals visualize and interpret a given
a mental mind works and processes informa Mapping and as situation that leads to distortion of information.
process tion in any given situation. Information
Processing
Concept of Major
Sl. School of Critique
Strategy Major Premises Constructs
No. Thought
Formation
2. Strategists are self-taught. They Cognition Maps,
develop their self-knowledge and Frames and
structure their thought processes Schemata
based on their past experiences.
6. The Learning Strategy 1. Strategy in an organization is not Disjointed Incremen- By defining strategy as an emergent process, the
A Critique of Strategy Safari: The Complete Guide Through the Wilds of Strategic Management
9. The Strategy 1. Strategy of an organization involves Adaptation, Strategic formation as a reactive approach may keep
Environmental formation as adapting to the changes taking place Contingency Theory the organization always on the defensive and hence
School a reactive in the external environment. and Organization as it may not be in a position to respond appropri-
process an Ecosystem ately to the sudden change in the environment.
10. The Strategy 1. Strategy consists of sequence of Organizational Life The assumptions may not be relevant in
Configuration formation as a alternate transformations and Cycle, Models and practical situations.
School process of configurations. Ideal Types
53
transformation
This book presents a comprehensive picture of strategic formation; however, too
much emphasis has been put on the ‘what’ element. The authors could have discussed
about the ‘why’ and ‘how’ elements of strategy formation. In addition, the issue of
strategy implementation should have been discussed in detail. Majority of examples used
by various proponents of the schools involve big business houses and belong to
developed western countries. Therefore, this book can be extended towards understanding
the above schools from the context of small companies and companies belonging to the
developing parts of the world like, India. Finally, we see emphasis given to customers,
that are the basis for any company’s success or failure. Hence, this study can be further
extended towards understanding how each of the above perspectives creates customer
value.
References
1. Ansoff Igor (1991), “Critique of Henry Mintzberg’s the Design School: Reconsidering
the Basic Premises of Strategic Management”, Strategic Management Journal, Vol. 12,
No. 6, pp. 449-46.
4. Collins J (2001), Good to Great: Why Some Companies Make the Leap…and Others
Don’t, Random House Business Books, London.
5. http://en.wikipedia.org/wiki/Digital_Equipment_Corporation
6. http://www.oppapers.com/essays/Motorola-Analoguedigital-Failure/79322
7. http://www.theapplemuseum.com/index.php?id=49
8. Levinthal Daniel A and March James G (1993), “The Myopia of Learning”, Strategic
Management Journal, Vol. 14, Winter, pp. 95-112.
9. McLarney C and Shelley Rhyno (1991), “Mary Parker Follett: Visionary Leadership
and Strategic Management”, Women in Management Review, Vol. 14, No. 7,
pp. 292-304.
10. Miller D (1992), “The Generic Strategy Trap”, Journal of Business Strategy, Vol. 13,
No. 1, pp. 37-41.
12. Mintzberg H, Bruce Ahlstrand and Joseph Lampe (1998), Strategy Safari: The Complete
Guide Through the Wilds of Strategic Management, The Free Press, New York.
13. Porter M E (1980), Competitive Strategy: Techniques for Analysing Industries and
Competitors, Free Press, New York.
Reference # 33J-2009-06-04-01