ASSIGNMENT OF WEEK 21

1.     What are the benefits and drawbacks of taking an “emergent” approach to strategy making?

The best-laid plans of mice and men often go awry. - (Robert Burns, “To a Mouse,” 1785).

The above quotes are applicable to strategy making.

In emergent strategy strategic analysis, strategic development and strategy implementation are interconnected and are developed together. This approach can be noticed as an emergent approach. There are two reason of this are as follows: - first, it is still emerging as a discipline of thoughts and second, its change is viewed as an emergent process of testing and variation (Organization behavior and analysis, Derek Rollinson, p.657).

 The main concern of emergent strategy is to enable develop emergent process. Even the best planned strategy may sometimes fails or may produce unexpected results. Thus, emergent strategy is the process of identifying and recognizing unexpected results from the implementation of corporate strategy and learning and understanding to integrate those unexpected results into future corporate plans. For instance, using face book, tweeter or other social media for marketing can be an inclusive marketing program. But if the social media marketing becomes extremely successful then there will be a need of an emergent strategy and immediate actions needs to be taken.

Followings are the advantages of emergent strategy approach to strategy making:

In most of the situation emergent strategy arises from an individual who directly responds to the market. In this world nothing runs for long term. Each and every second customer’s tastes and preferences will change. In such a scenario, intended strategy may not help strategist. Intended strategy is made from the view point of customers not from the viewpoint of investors. The key advantage of emergent strategy is that it enables business and strategist to know what the customers want rather than what they believe the market or customer wants. But knowing customer wants and demands are not sufficient. Businesses must be flexible, to enforce such type of strategy. In addition, emergent strategy forces organizations to think and look ahead.
 

Source: Richard W. Scholl (2012), Human Resource Strategy and Competitive Strategy Available at: http://www.uri.ed/research/lrc/scholl/Slides/LRS551/HR_Strategy.htm#1 [Accessed on 19th April, 2013]

Followings are the disadvantages of emergent strategy:

The main disadvantage of emergent strategy is the lack of planning. When there is no plan then there might be a huge risk. Also emergent strategy lacks clear goals and objectives. Emergent strategy can create either positive or negative results. When organizations fully depend upon emergent strategy, then big problem may arise. Further, the employees or the staffs of the organization may not be able to adapt with change in a short period of time. It may lead to failure of emergent strategy. Furthermore, line managers will face difficulties in implementing such strategies as they are new to them. In the case of critical condition, emergent strategy needs to be used with a strong strategic planning.

2.      Did Honda’s entry strategy demonstrate the characteristics of “logical incrementalism‟?

After reading the case study we can easily say that Honda was following emergent strategy over planning. Every time it failed it goes for another strategy again and again. According to Mintzberg and Pascale, Honda got success because of learning experience. In the beginning, when they started their business in U.S. the motorcyclist were believed to be bad guy or rowdies. So in order to remove the misconception Honda introduced “You Meet the Nicest People on a Honda" slogan. Further, they knew that Motorcycle business was seasonal in US. After knowing this some Honda’s motorcycles began to sell but after some month’s complaint were coming about the machines. They again ran test and redesign the machine. In such a way Honda continuously scanned the US motorcycle environment and it was successful in adapting with changes.

For 5 years Honda struggled a lot to get market in the U.S. Sometimes their machines broke down and sometime their machines were not suitable for the American’s bike riders. It continuously leaned and experienced. Before entering into the US market, in Japan it has achieved success. With such experience which is also known as learning curve, Honda has been able to get success. So, with continuous learning and experience, Honda has been successful. With studying all this we can easily say that Honda’s entry strategy demonstrate the characteristics of logical incrementalism.

 

References: 
Abrahamson, Eric (1996) ‘Management fashion’,Academy of Management Review 21.1: 254-285.

Abbeglen, James C. and George Stalk Jr. (1985) Kaisha, The Japanese Corporation. New York: Basic Books.  

Barry, David and Elmes, Michael (1997) ‘Strategy retold: toward a narrative view of strategic discourse’ Academy of Management Review 22.2: 429-452.

Boston Consulting Group (1975) Strategy Alternatives for the British Motorcycle Industry. London: HMSO. 

R.T. Pascale, ‘Perspectives on strategy: the real story behind Honda’s success’, California Management Review, vol. 26, no. 3 (Spring 1984), pp. 47–72;

H. Mintzberg, R.T. Pascale, M. Goold and R.P. Rumelt, ‘The Honda effect revisited’, California Management Review, vol. 38, no. 4 (1996), pp. 78–116.

M. Mankins. ‘Stop making plans, start making decisions’, Harvard Business Review, January (2006), pp. 77–84.

Strategic decision making: process perspectives’, International Journal of Management Reviews, vol. 8, no. 1 (2006), pp. 1–20

G. Johnson, ‘Rethinking incrementalism’, Strategic Management Journal, vol. 9, no. 1 (1988), pp. 75–91.