1. Produce a critique of the use of generic frameworks to guide strategic decisi
ID: 350077 • Letter: 1
Question
1. Produce a critique of the use of generic frameworks to guide strategic decision-making. Use appropriate examples to explore how this approach can be effective and where it poses challenges and difficulties. Discuss alternatives to the use of frameworks.
2. Scan the media to identify an enterprise of interest and then summarize the major strategic issues that it currently faces. Consider how and why the enterprise might misdiagnose these issues. What could it do to avoid such mistake?
Answer these two questions. Reconcile them using the textbook readings, personal experience, and research to develop an answer to the questions posed?
Textbook(s)/ISBN:
Pitt, M., & Koufopoulos, D. N. (2012). Essentials of Strategic Management. London: Sage. ISBN: 9781849201872
Magretta, J. (2012). Understanding Michael Porter: The Essential Guide to competition and strategy. Boston, MA: Harvard Business Review Press. ISBN: 9781422160596
Explanation / Answer
1. Generic frameworks for strategic decision making includes framework such as Porter five forces, McGregor’s theory of X and Y, Four Ps of Marketing, etc. These frameworks have been used over the ages for various companies in order to structure their thinking and approach problems with a systematic method.
For traditional businesses, these frameworks function well. They are a tried and tested method and are mostly applicable for industries that were present at a time when the frameworks were created. For example, Porter five forces model was published in 1979. Since then the business landscapes have changed drastically and there are many new different types of businesses (like internet businesses, ecommerce, etc.) that have come up. In many of such instances, the framework may not be applicable for these new businesses to make strategic decision.
The alternative to using these framework is to modify the framework. This is however, is happening in the recent times. The 4 Ps of marketing has become 7Ps of marketing. These are evolving frameworks that are based on the original frameworks but cater more to today’s businesses.
Another alternative is to use multiple framework in parallel to make decision. Often, the traditional frameworks may not be applicable to the current businesses but multiple frameworks minimize the chances of overseeing opportunities or errors.
2. Let us consider Apple Inc. The organization has witnessed a rise in fortune and growth over the last two decades. They have been the pioneer at consumer technology and have established themselves as market leader in consumer quality. However in recent times, Apple has come under criticism for their lack of innovation and not being able to keep up with competitors to gain market share.
The organization, as it stands today, has millions of loyal followers that will probably keep purchasing Apple products. This may make the CXOs of the company fairly comfortable with their ongoing operation and business practices. However, they should assess the reason for the success (in the last two decades) and their weaknesses.
Few points to be noted here is that they have seen success because of the following
While these factors are still present in Apple today, the difference between them and their closes competitors have reduced. This means, the company cannot rest on their laurels and must keep improvising. Their recent products like the iPhone 8 and Macbook Pro has come under criticism from users and media alike for copying competitors.
These challenges need to be overcome. The company should avoid such mistakes by innovating vertically or horizontally. However that seems to be lacking in Apple Inc right now.
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