This paper is going through two approaches of strategic management which are Prescriptive approach and Emergent approach. Among these two, prescriptive approach view considers the process of strategic planning more formal. It considers that the future can be predicted, and decisions can be made for the long term. On the other hand emergent school of thought, neglects this approach, and contends that today organizations ability to learn and adapt provides the truly sustaining competitive advantage. This paper is also going through the application of Prescriptive approach on TMF logistics for making the applications understandable in real life situations. Here the model proposed by Sink and Langley for “Third-Party Logistics Buying Process” is explained in this paper as a formal way of implementing “Prescriptive approach” in the organisation.
Executive Summaryii
Introduction1
Prescriptive Strategy Processes4
Emergent Strategy Processes5
Prescriptive Model Approach for Logistics Outsourcing Process at TMF6
Step 1: Identify Need to Outsource Logistics7
Step 2: Develop Feasible Alternatives8
Step 3: Evaluate Candidates and Select Supplier9
Step 4: Implement Service9
Step 5: Ongoing Service Evaluation10
Conclusion10
References12
Prescriptive or Emergent Approach
Introduction
Strategic management is a very in-depth field which has a major intention of leading towards emergent initiatives which are taken by managers on behalf of the owners. These initiatives are involved of utilization of resources for enhancing the performance of organization and dealing in a more competitive manner in the external environment. A successful strategic planning is able to result competitive advantage, for the profitable growth of the organization. There is little disagreement, as to the outcome of strategic planning; however, there exists some conflict as to how this planning need to be done in today's scenario (Robson, 1997).
The two approaches are Prescriptive approach and Emergent approach. The prescriptive approach view considers the process of strategic planning more formal. It considers that the future can be predicted, and decisions can be made for the long term. Setting the direction of the company, and then strict adherence to those decisions by the top management is the only way to achieve success in strategic planning. It ensures the direction of the company is towards its achieving the mission and goals set earlier.
Emergent school of thought, neglects this approach, and contends that today organizations ability to learn and adapt provides the truly sustaining competitive advantage. Merely setting of goals on the basis of assumptions regarding future is inappropriate in today's highly fluctuating environment. Companies should create flexible strategic plans, and then, amend it from time to keep it alive and meaningful. It takes tactful approach to exploit the opportunities in the environment. Emergent approach to strategic planning is also criticized for making the strategic planning a short term activity. This can confuse the employees, eat up resources of the firm and create ambiguity in the mission of the organization (Marrow, 1969).
There are two main models for which are provided by strategic management for organizational change out of these two, prescriptive approach is the one which works best wherever there is a possibility of moving clearly from one state to the other and emergent approach, this one ...