1). Analyze the theoretical constructs behind organizational strategy?
2). Evaluate the role of planning in organizational strategy?
3). Compare and contrast three strategic planning models used in organizations today? (examples: Vision or Goal-Based Planning Model, Issue Based Model, and Alignment Planning Model) Note: or the best models used in organizations today.
4). Which of the three strategic planning models would be most effective in the modern organization?
1) Analyze the theoretical constructs behind organizational strategy?
Research requires a sound theoretical basis and strong methodology. This is because it provides a framework for analysis, it provides an efficient method for field development and it provides a clear explanation for the pragmatic world (Udo-Akang, 2012). This is the justification for theoretical constructs.
A study has anchored 'Business model' as a robust and useful construct for organization and strategy research (Zott et al, 2013). This is because business models can create value through efficiency (anchored in transaction costs economies), novelty ( through Schumpeterian innovation), complementarities ( anchored in resource-based theory) and lock-in ( inherent in strategic networks). The business model describes the system of interdependent activities that are performed by the firm and by its partners, and the mechanisms that link these activities to each other ( Zott & Amit, 2010). The Business model is market centric, involves partners, suppliers and customers and is designed so as to enable the organization to create valued for all stakeholders (Zott et al, 2011).
Other constructs that impact the business model and the organization strategy are goals, templates, stakeholder activities and environmental constraints ( Amit et al, 2013). The internal stake holders -management, shareholders and employees as well as the external stakeholders - partners, vendors and customers influence organization strategy.
Other concepts of importance are new organization structures, environment and embedded social organizational interaction (Zott et al, 2013).
The business ecosystem which is an economic community supported by a foundation of interacting organizations and individuals is an important construct influencing strategy. Adner and Kapoor( 2010) have found that the success of an innovating firm is often dependent on the activities performed by third parties in its environment.
Activity systems which is the nature of knowledge production, taking advantage of technology through new business arrangements and balancing cooperation and competition are all construct that influence business strategy ( Zott et al,2013) . Consistency, mutually reinforcing activities and global optimization should characterize activity systems.
Value chain activities which create value also influence organization strategy.
Lieb(2012) describes the following factors as influencing organization strategy :
1. Situation - the players, the conditions, the intent.
2. Outcome - the set of feasible results
3. Resources and assets for action
5. Ability to utilize resources and act
6. Inherent uncertainties
7. Aims, Objectives and ...
The paper looks at the role of planning in strategies. The paper also looks at the theoretical constructs behind strategies and the strategic planning models used by organizations today.