Principles of Strategic Management: Introduction to Strategy - Intended vs. Emergent Strategy, Mintzberg

What This Is

Intended vs Emergent Strategy refers to the distinction between a company's planned strategy and the actual strategy that unfolds over time. This concept, introduced by Henry Mintzberg, highlights the gap between what managers intend to achieve and what actually happens. For instance, Apple's intended strategy was to be a niche player in the personal computer market, but its emergent strategy led to its dominance in the smartphone and music industries.

Key Frameworks & Tools

• Intended Strategy: A deliberate, planned approach to achieving a company's goals and objectives.
• Emergent Strategy: The actual strategy that unfolds over time, often driven by external factors and internal dynamics.
• Strategy Typology: Mintzberg's categorization of strategies into three types: deliberate (planned), emergent (unplanned), and entrepreneurial (innovative).
• Strategy Formulation: The process of developing a company's strategy, involving analysis, planning, and decision-making.
• Strategy Implementation: The process of putting a company's strategy into action, involving resource allocation, organizational design, and control mechanisms.
• Environmental Scanning: The process of monitoring and analyzing a company's external environment to identify opportunities and threats.
• SWOT Analysis: A framework for identifying a company's Strengths, Weaknesses, Opportunities, and Threats.
• PESTEL Analysis: A framework for analyzing a company's external environment, considering Political, Economic, Social, Technological, Environmental, and Legal factors.

Step-by-Step Application

1. Conduct an Environmental Scanning: Identify key external factors that may impact your company's strategy, such as changes in the market, technology, or regulatory environment.
2. Analyze Your Company's Strengths and Weaknesses: Use a SWOT analysis to identify your company's internal capabilities and limitations.
3. Develop a Deliberate Strategy: Based on your analysis, develop a planned strategy that aligns with your company's goals and objectives.
4. Monitor and Adjust: Continuously monitor your company's performance and adjust your strategy as needed to respond to changing external factors and internal dynamics.
5. Implement Your Strategy: Put your strategy into action by allocating resources, designing organizational structures, and establishing control mechanisms.
6. Evaluate and Refine: Regularly evaluate your company's performance and refine your strategy to ensure it remains aligned with your goals and objectives.

Common Mistakes

• Mistake: Confusing intended strategy with emergent strategy.
• Correction: Recognize that intended strategy is a planned approach, while emergent strategy is the actual outcome of internal and external factors.
• Mistake: Failing to consider the external environment when developing a strategy.
• Correction: Conduct environmental scanning and PESTEL analysis to identify key factors that may impact your company's strategy.
• Mistake: Ignoring internal dynamics and organizational capabilities when developing a strategy.
• Correction: Analyze your company's strengths and weaknesses using a SWOT analysis to inform your strategy.

Case Interview / Exam Tips

• Be prepared to distinguish between intended and emergent strategy: Use concrete examples to illustrate the difference between planned and actual strategy.
• Focus on the external environment: Highlight the importance of environmental scanning and PESTEL analysis in developing a strategy.
• Showcase your analytical skills: Use frameworks like SWOT analysis and PESTEL analysis to demonstrate your ability to analyze complex information.

Quick Practice Scenario

A company has low market share in a high-growth industry – where does it sit on the BCG matrix?

Answer: The company is likely to be in the "question mark" quadrant, indicating a high growth rate but low market share.

Last-Minute Cram Sheet

• Intended strategy is a planned approach, while emergent strategy is the actual outcome of internal and external factors.
• Environmental scanning and PESTEL analysis are essential for developing a strategy.
• SWOT analysis helps identify internal strengths and weaknesses.
• Deliberate strategy involves planning and decision-making, while emergent strategy involves adaptation and adjustment.
• Strategy implementation involves resource allocation, organizational design, and control mechanisms.
• "Stuck in the middle" means trying to do both cost leadership and differentiation without achieving either – not a valid hybrid strategy unless operational excellence is present.
• Failing to consider the external environment can lead to a mismatch between intended and emergent strategy.
• Ignoring internal dynamics and organizational capabilities can result in a strategy that is not aligned with the company's strengths and weaknesses.