5. ENVIRONMENTAL SCHOOL OF THOUGHT
Sept. 22, 20165
•Environment is defined as all elements that exist
outside the boundary of the organization and have
the potential to affect all or part of the
organization
•Environment is an actor, rather than a factor
•A reactive process
•Strategy as a response
6. Premises(Mintzberg, et al,1998)
Sept. 22, 20166
• The environment, presenting itself to the organization as a set of
general forces, is the central actor in the strategy making process.
• The organization must respond to these forces, or else be "selected
out."
• Leadership thus becomes a passive element for purposes of reading
the
environment and ensuring proper adaptation by the organization.
• Organizations end up clustering together in distinct ecological type
niches, positions where they remain until resources become scarce
or conditions too hostile. Then they die.
7. Origins of the thought
Sept. 22, 20167
•Biology
-adaptability and survivability
•Highly related to:
contingency theory,
the situational leadership
population ecology.
8. Limitations and Contribution
Sept. 22, 20168
•Contribution
•Gives a general role of the environment in strategy
formulation
•Limitations:
“It all depends”
Lack of emphasis on choice
Vague definition of environment
14. Footer text here
References
Minztberg, H., B. Ahlastrand and J. Lampel. (1998). Strategy Safari: A guided tour
through the wilds of Strategic management. pg 285-300. The Free Press. New York.
Mintzberg’s Ten Schools of Thought about Strategy Formation. (n.d.). Retrieved
September 9, 2016, from http://opentuition.com/wp-content/blogs.dir/1/files/group-
documents/23/1271485643-
MINTZBERGTENSCHOOLOFTHOUGHTFORSTRATEGYFORMATION.pdf
Kotelnikov, V. (n.d.) Ten Major Strategic Management Schools: A Comparative Analysis.
Accessed from
http://www.1000ventures.com/business_guide/mgmt_inex_stategy_10schools.html.
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Editor's Notes
-- say one of the schools of thought is the envi school of thought
The use of this school of though (in aggregate is the different approaches/ way of thinking to formulate strategies for firms)
Organizations as organisms which have to adapt in environmental conditions to be able to survive. Cite Charles Darwin’s theory of adaptability. Long necked from short necked.
Envi School of thought is a way of thinking where strategies are based on the environment. Disregarding choice and thinking skills of people in strategy making. EST seems to state that strategies have to be done vs strategies are to be done.
Population Ecology: Population- orgs as fruit flies, Innovations as new DNA Strands/ needed to innovate to be able to survive. Choice- not in the vocab. Strategies are mere reactions- need to be done for resource utilization. (Sees strategy, ie resource allocation- if allocation or utilization of resources are reactions to the limited capacity of the environment. ) Survival-
COMMUTATIVITY
Leadership approach is based on what the ability and willingness level of followers. Followers and their ability and willingness as the environment.