BUS601: Financial Management

Learning Objectives

1. Learn what is meant by intended and emergent strategies and the differences between them.
2. Understand realized strategies and how they are influenced by intended, deliberate, and emergent strategies.

A few years ago, a consultant posed a question to thousands of executives: "Is your industry facing overcapacity and fierce price competition?" All but one said "yes". The only "no" came from the manager of a unique operation – the Panama Canal! This manager was fortunate to be in charge of a venture whose services are desperately needed by shipping companies and that offers the only simple route linking the Atlantic and Pacific Oceans. The canal's success could be threatened if transoceanic shipping was to cease or if a new canal were built. Both of these possibilities are extremely remote, however, so the Panama Canal appears to be guaranteed to have many customers for as long as anyone can see into the future.

When an organization's environment is stable and predictable, strategic planning can provide enough of a strategy for the organization to gain and maintain success. The executives leading the organization can simply create a plan and execute it, and they can be confident that their plan will not be undermined by changes over time. But as the consultant's experience shows, only a few executives – such as the manager of the Panama Canal – enjoy a stable and predictable situation. Because change affects the strategies of almost all organizations, understanding the concepts of intended, emergent, and realized strategies is important (Table 1.2 "Strategic Planning and Learning: Intended, Emergent, and Realized Strategies"). Also relevant are deliberate and unrealized strategies. The relationships among these five concepts are presented in Figure 1.3 "A Model of Intended, Deliberate, and Realized Strategy".

Table 1.2 Strategic Planning and Learning: Intended, Emergent, and Realized Strategies