Corporate Strategic Management: Prescriptive Approach & Emergent Approach

Corporate strategic management: Prescriptive Approach & Emergent Approach

Introduction

In the study about the concept of corporate strategy, Andrews(2003) stated that the corporate strategy is the tool of determinations which is used to decided or reveal goals, purposes or objectives, and establish the primary policies and plans to achieve the goals, and define the range of business in which the company might be challenged by other enterprises; meanwhile the type of economic and human organizations they are try to contribute their nature of economic and noneconomic contribution to make to its shareholders, employees, customers and communities. The argument of corporate strategic management has always existed. There are two contrasting views has been widely accepted, which are prescriptive approach and the emergent approach. It depends on the company's overall purpose and size. In the modern view of corporate management, it includes the specific long-term objectives, commercial value added and deal with the variability of the modern society. The prescriptive and emergent approaches are general recognized as the basic strategic development theories. Both of these approaches should be adapted to the constantly changing environment, fierce competition and enterprise globalization. The powerful external pressures could prompt the companies to reduce costs, increase outputs and confirm new chances for development. Nowadays, the reason that many enterprises are forced to make huge enhancement are not only for the competition and prosperity, but also for surviving in the realities of business circumstances.

The Prescriptive Approach

The prescriptive approach appears in a point in time and is composed of a set of rules, completely formulated and implemented sufficient preparation. Provision on the method of strategic development is considered as a systematic and certainty of the process on the analysis of the organization, its internal and external context of performance promotes the forming of seasonable and long-term project.

The prescriptive approach firstly should analyse the environment of competition and the competitive resources of the organization. The result of this analysis of the main factors of strategy purpose and the main factors of development strategy are defined before the strategy starts. Purpose could be adapted as environmental or other conditions changes. However, the target must be still clearly defined. The strategy is a plan created by planners. Senior management is responsible to confirm the ultimate goal and arrangement, and then put into practice by different levels of organization. The process of the prescriptive strategy is first to develop or define organization's objectives. Then, analyse and interpret of the external environment, which has opportunities or threats, and surrounding the