Definition of Strategy and Its Importance
As opined by Hatch (2018), the abundant usage of different innovative technologies has drastically metamorphosed the modern business world and this in turn has significantly increased the business competition that the different modern organizations face. Wheelen et al. (2017) are of the viewpoint that the modern business enterprises in order to effectively mitigate the adverse effects of this intense competition that they face within the framework of the modern business world take the help of diverse business strategies. In this regard, it needs to be said that the concepts of strategic choices and deterministic theories have gained prominence and are being extensively used by different organizations to attain a higher level of growth (Grant, 2016). The theory of strategic choices are considered to be more beneficial for the organization because of the fact that they enable the organizations to effectively utilize the opportunities offered by the external business environment and also to reduce the adverse effects of the threats presented by the same.
This essay will analyze the paradigm wars in the modern organizations because of the plethora of strategic options that are available to them. The essay begins by defining the concept of strategy and their usefulness within the framework of various organizations. The essay next undertakes a discussion of the theories or strategies of strategic choice and deterministic theories like resource dependency theory, institutional theory and population ecology. The essay finally concludes by showing that the option of strategic choice is perhaps the best one for the various contemporary business enterprises because of the numerous benefits that they offer to these organizations.
Mellahi et al. (2016) are of the viewpoint that the notion of strategy can be defined as a course of planned action that has been designed to enable the organization to achieve the overall goal or objective outlined by it. More importantly, the notion of strategy is a traditional one and its origin can be traced be to the ancient times when the different generals or kings used to take the help of this notion for gaining victory in battles or wars (Buckley, 2016). However, at the same time, it needs to be said that in the recent times the notion of strategy has undergone a substantial amount of change and is increasingly being by the different organizations for the attainment of their business objectives. As opined by Prajogo (2016), the overall business prospects of an organization depend greatly on the kind of business strategies that it is following for the purpose of its business operations.
According to Hill, Jones and Schilling (2014) one of the most important trends which is being noticed within the spectrum of the present day business world is the fact that the modern business enterprises need to take into effective consideration the business environment in which they are operational. In this regard, it needs to be said that the contemporary organizations are required to thoroughly analyze the business environment in which they are operations and thereby identify the threats as well as the business opportunities offered by the same (Trigeorgis & Reuer, 2017). It is precisely here that the notion of strategic choices become important since they enable the organizations to effective mitigate the adverse effects of the threats and utilize the business opportunities in an effective manner. The net result of this is the fact that the contemporary business enterprises are utilizing the theory of strategic choices to formulate the kind of business strategies which are in synchronicity with the demands of the external business environment in which these business enterprises operate (Buckley, 2016). This is important since it not only enables the organizations to amend their business operations as per the demands of the external business environment in which they operate but at the same time enables them to use the kind of strategies that are likely to help them to attain sustainability as well. These in short are the major reasons why the contemporary business enterprises are increasingly resorting to the use of this theory within the spectrum of their business operations.
Thorough Analysis of Business Environment is Important
As opined by Vom Brocke, Zelt and Schmiedel (2016), the two major theories which are being used by the different modern business enterprises for the enhancement of their business prospects are the strategic choices and the deterministic theories. Malatesta and Smith (2014) have stated that the fulcrum point of the different deterministic theories is the fact that the diverse business markets more or less assert themselves and the business enterprises cannot control them in an effective manner. The net result of this is the fact that the contemporary business enterprises are merely required to respond to these marketplace changes of shifts by way of taking the help of different kinds of strategies (Suddaby, 2015). More importantly, it is seen that morals choices and also responding to the different affairs of the organization and also the marketplace form an integral part of these deterministic theories (Coupet & McWilliams, 2017). These are perhaps the major reasons why the majority of the contemporary organizations are increasingly opting for the use of these deterministic theories for the purpose of effectively managing the diverse aspects of their business operations. In this regard, it needs to be said that the three major deterministic theories which are being extensively used by the different contemporary organizations are resource dependency theory, institutional theory and the population ecology.
Zona, Gomez-Mejia and Withers (2018) have stated that the resource dependency theory is a nascent one within the cannon of the modern business world and was first articulated by Pfeffer and Salancik in the book “The External Control of Organizations: A Resource Dependence Perspective” in the year 1978. As opined by Klein and Posch (2017), this theory can be seen as an exploration of the manner in which an organization can effectively utilize the external resources of theirs to positively improve the business prospects of their organization. More importantly, it is seen that the primary focus of the theory is on the development of the internal capabilities of the organizations through an effective utilization of the different key resources of the organization (DeAngelis, 2018). In addition to this, the theory under discussion here also discusses the manner in which the organizations can offer the right kind of resources to the employees and the other entities associated with them so as to positive enhance the performance of these employees and thereby the overall performance of the organization as well (Thompson, 2017). This theory becomes especially important within the context of the contemporary business enterprises because of the fact that one of the major problems that the modern organizations are currently facing is related to the availability of adequate resources for the improvement of the business prospects of an organization (Hatch, 2018). The effective utilization thus not only enables the organizations to improve their performance but also helps them to attain competitive advantage as well as sustainability within the spectrum of the business environment in which they operate.
Institutional theory, on the other hand, utilizes the important concepts as well as theories of sociology, history, culture and others for the improvement of the overall workplace or organizational culture of a business enterprise (Prajogo, 2016). Hill, Jones and Schilling (2014) are of the viewpoint that the workplace of the different modern business enterprises can be seen as a microcosm of the entire and thus the norms, regulations, rules and other aspects which dictate the behavior as well as the activities of the human beings within the society can also be used by different organizations. As opined by Buckley (2016), the fulcrum point of this theory can be seen as the integration of the different norms, regulations and other aspects of the contemporary society within the spectrum of the modern business enterprises. The net result of this is the fact that the different contemporary business enterprises are increasingly resorting to the use of this theory for the improvement of their organizational culture and thereby the overall performance of their organization. According to Grant (2016), the job productivity of the employees depend significantly on the kind of organizational or workplace culture which is being followed within the framework of an organization. Furthermore, recent researches have revealed the fact that the employees within an organization which has a congenial workplace culture are likely to perform in a more adequate manner than the ones which does not have (Trigeorgis & Reuer, 2017). These in short are some of the major reasons why the institutional theory is being used extensively by the different contemporary business enterprises.
Theory of Strategic Choices
Mellahi et al. (2016) argue that one of the most important developments seen within the genre of the modern business world is the fact that the business enterprises are increasingly taking into effective consideration the different aspects of the employees who are a part of these enterprises. For example, it is seen that one of the most important aspects of the theory of population ecology is the fact that the different business enterprises need to take into effective consideration the different attributes of the population which are a part of these enterprises (vom Brocke, Zelt & Schmiedel, 2016). More importantly, this theory is related to the overall organizational behavior of the organizations and states that the organizations need to focus on the individual attributes of the different employees of the organization for the improvement of the overall organizational behavior of the concerned organization (Coupet & McWilliams, 2017). This in turn is directly related to the aspect of job productivity of the employees since it is seen that the employees are likely to work in a much effective manner if the overall organizational behavior of the organization is in synchronicity with the individual behavioral attributes of the different employees of the organization.
A critical analysis of the different deterministic theories reveals the fact that the majority of these theories are intended to develop the internal capabilities of the organization and thereby the improvement of the business prospects of the organizations. However, the major limitation of these theories can be said to be the fact that these theories do not take into consideration the demands of the external business environment within the framework of their business operations (Zona, Gomez-Mejia & Withers, 2018). It is precisely here that the prominence of the theory of strategic lies which requires the business enterprises to take into consideration the demands of the external business environment. More importantly, it is seen that the theory of strategic choices enables the organizations to formulate strategies which are intended to help them to effective utilize the business opportunities offered by the external business environment. Furthermore, it also help the organizations to effective resolve and mitigate the adverse effects of the threats offered by the external business environment in which the organizations operate (Hill, Jones & Schilling, 2014). These in short are the major reasons why the contemporary organizations and also the managers related to them mostly opt for the use of strategic choice theories rather than the deterministic theories within the spectrum of their business operations.
To conclude, the number of choices that are available to the different contemporary business enterprises related to the organizational theories has increased in a substantial manner in the modern times. The net result of this is the fact that there is a paradigm war going on within the framework of different organizations related to the use of different theories for the enhancement of their business prospects. More importantly, the organizations need to ensure the fact that these theories are in synchronicity with the requirements of their business and also with the ones of their external business environment in which they are operational. In this regard, it needs to be said that the strategic choices has emerged as one of the most ones in the recent times because of the fact that they enable the organizations to formulate strategies on the basis of the demands of the external business environment in which they operate. This is perhaps one of the major reasons why the contemporary business enterprises and also the diverse managers related to them opt for the use of strategic choice theory rather than the various deterministic theories within the framework of their business operations.
References
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