The fact that strategic decisions have an essential impact on growth, as well as on profitability, illustrates that organisations should become familiarised with the different approaches on how to come to a strategic decision.
Researchers discuss whether strategic planning tools should be used and which risk they bear and debate about the degree of formalization. Should decisions rely more on facts or more on human intuition and what benefits are involved? While there are several discussable approaches, it is widely agreed that strategic decisions influence the long-term performance of the company, by focusing on the future of the business as a whole, rather than on specific business units.
A glance at the practice shows that companies use several different approaches to come to strategic decisions. Performance indicators prove that some organisations established a very successful way of decision making, while other companies are struggling to find a way to make strategic decisions which fit the business model and the industry they are acting in.
This essay illustrates which approach is effective in making strategic decisions in today's world, with the emphasis to create an entrepreneurial environment. To analyse different approaches, this essay first reviews the literature in order to provide an overview of the theory about strategic development processes, continuing with benefits and dilemmas of deliberate and emergent strategies, illustrating that the incremental approach possesses balanced features. Finally, the essay discusses practical approaches of how to make effective strategic decisions in a high-velocity environment.
Table of Contents
1. Introduction
2. Literature review
3. Decision making in a high-velocity environment
4. Contrasting deliberate and emergent strategy in high-velocity environments
5. Conclusion
Objectives & Core Themes
This academic review evaluates literature concerning strategy development processes to determine which approaches are most effective for strategic decision-making within high-velocity business environments.
- Comparison of deliberate vs. emergent strategy theories.
- The impact of environmental volatility and market turbulence on decision-making.
- Analysis of formal planning tools versus organizational flexibility.
- Proactive management postures in hypercompetitive markets.
- Practical case comparisons (Apple vs. Google).
Excerpt from the Book
Contrasting deliberate and emergent strategy in high-velocity environments
Researchers disagree about whether an emergent or an intended strategy should be applied to keep up with the market’s pace. An essential core point in this dispute is whether external factors, which influence the organisation, are predictable. According to Mintzberg (1994) basic patterns may be predictable, but discontinuities, such as upcoming innovations, are not. Courtney et al (1997), a McKinsey consultant, developed a four-dimension model, which is useful in an uncertain business environment. The four-dimension model proposes that even in an uncertain environment it is possible to identify trends to a certain degree. The model is merely trying to minimise the degree of uncertainty, but is aware of the fact that it cannot be eliminated completely. Quinn (1978) points out, that in order to adapt the strategy incrementally, a constant and continuous scanning of the environment is important in a high velocity environment, meaning that data needs to be updated regularly. Courtney's model is an effective tool for strategic decision making and can be clustered as a formal planning tool, adapted into a volatile environment.
Summary of Chapters
Introduction: This chapter highlights the critical impact of strategic decision-making on organizational performance and introduces the study's goal of identifying effective approaches for volatile environments.
Literature review: This section contrasts the traditional, analytical view of strategic planning with more modern, flexible approaches that emphasize responsiveness to market uncertainty.
Decision making in a high-velocity environment: This chapter examines how globalized, high-velocity markets necessitate new management philosophies that blend data-driven insights with agile organizational structures.
Contrasting deliberate and emergent strategy in high-velocity environments: This section evaluates the trade-offs between formal strategic planning and emergent approaches, concluding that a hybrid model is often required.
Conclusion: This final chapter synthesizes the research, suggesting that successful organizations must customize their strategic approach to balance quantitative rigor with proactive, flexible execution.
Keywords
Strategic Management, High-velocity environments, Decision-making, Emergent strategy, Deliberate strategy, Organizational performance, Market volatility, Planning tools, Rationality, Flexibility, Hypercompetition, Proactive management.
Frequently Asked Questions
What is the core focus of this research paper?
The paper provides a critical literature review on strategy development processes to identify which management approaches best support strategic decision-making in highly volatile and fast-paced market environments.
What are the primary thematic fields covered?
The themes include the dichotomy between deliberate and emergent strategies, the role of market research and hard data in planning, and the organizational necessity for agility and proactivity.
What is the fundamental research goal?
The goal is to determine an effective way for firms to make strategic decisions that remain relevant and successful when operating under conditions of high unpredictability and complexity.
Which methodologies are discussed?
The paper reviews established academic theories—such as those by Mintzberg, Ansoff, and Porter—and examines practical decision-making tools like Courtney's four-dimension model.
What does the main body of the text cover?
It covers the evolution of strategic theories, the critique of traditional bureaucratic planning, the shift toward incrementalism, and the practical application of strategy in modern organizations like Apple and Google.
Which keywords best characterize this work?
Key terms include Strategic Management, High-velocity environments, Decision-making, Emergent vs. Deliberate strategy, and Organizational agility.
How does market volatility affect planning, according to the author?
The author concludes that in high-velocity markets, planning must shift from rigid, centralized models toward more informal, decentralized, and proactive structures that encourage innovation.
Why does the author cite the examples of Apple and Google?
These examples illustrate that there is no "one size fits all" strategy; Apple relies on intuitive, low-research innovation, while Google utilizes a highly data-driven approach, proving that strategy must align with the specific needs of the organization.
- Arbeit zitieren
- Anonym (Autor:in), 2015, Strategy Development Processes and Useful Approaches in High-Velocity Environments, München, GRIN Verlag, https://www.grin.com/document/364467
