Sees strategy formation as achieving the essential fit between internal strengths and weaknesses and external threats and opportunities.
*Senior management formulates clear, simple, and unique strategy.
Planning School (mid 1970s - 1980s)
Reflects the design school, except that the process is not just cerebral but formal, and broken down into distinct steps,
from the analysis situation to the execution of the strategy.
*Staff planners replace Senior Managers
Positioning School (1980s)
Strategy reduces to generic positions selected through formalized analysis of industry situations.
*Planners become analysts.
Centered the process on the chief executive; shifted strategies from precise designs, plans, or positions to vague visions or broad perspectives.
Cognitive School (1980s)
Analyses how people perceive patterns and process information.Concentrates on what is happening in the mind of the strategist and how it processes the information.
**Cope or create.
Strategies are emergent, strategists can be found through-out the organization, and so-called formulation and implementation intertwine.
-Micro power sees the development of strategies within the organization as essentially political.
-Macro power views the organization as an entity that uses its power over others to negotiate "collective" strategies inits interest.
Cultural School (1980s)
Focuses on common interest and integration. Strategy formation is a social process rooted in culture.
The strategy is a response to the challenges imposed by the external environment. Includes contingency theory, population ecology, and institutional theory.
Sees organization as configuration: coherent clusters of characteristics and behaviors, that integrates the claims of other schools. Strategy formation is a process of
transforming the organisation from one type of decision-making structure to another.
Blend of Design & Learning
Resource Based theory
Cultural & Learning
E.G. Scenario Analysis and stakeholder analysis
Planning, learning or power
Cognitive and Cultural
Chaos & Evolutionary Theory
Learning & Environmental
Environmental, Power or Cognitive
Environmental & Entrepreneurial
Configuration & Entrpreneurial
Power & Positioning
Positioning & Power
21 - 25
“Strategy formation is judgmental designing, intuitive reasoning, and emergent learning; it is about transformation as well as perpetuation; it must involve individual cognition and social interaction, cooperative as well as conflictive; it has to include analyzing before and after as well as negotiating during; and all this may be in response to a demanding environment. Try to omit any of this, and watch what happens!”