Student ID: 0712941

Name: Bandhoo Mohummud Juneid

Course: BSc Production & Operations

Management.

Module: MECH 3004Y

Submission Date: 26/01/11

 • Linear Strategy

This strategy focuses mainly on planning. Furthermore, the steps involved in the
planning process are systematic, directed and chronological. This particular model of
strategy encompasses a combination of decisions, actions or plans to meet the main
goals of the organisation. So, goals and means form part of the outcome of strategic
decision and in addition organisation diverse their links with the environment by
changing either their products or services. Linear model incorporates of strategic
planning, strategic formulation and strategic implementation.

• Adaptive Strategy

Being the 2nd model, adaptive strategy emphasizes more on the development of a
relationship between the opportunities and risks present in the external environment
and at the same instance to have the capabilities and resources to utilise these
opportunities. However, it is expected to assess both external and internal conditions
continuously. Therefore, this enables to bring adjustments in the organisation’s
environment to obtain the appropriate configuration of the opportunities and risks
with that of organisation’s capabilities and resources.

• Interpretive Strategy

The last strategy is interpretive. It is more interested in the development of symbols

and social culture .i.e. the improvement in interaction of relationships. Also, it is
suggested that this model is based on a social contract that fits well in the adaptive
strategy. This shows the motivation of the employees to fulfil corporative objectives
of an organisation as its’ own existence depends enormously on the teamwork
contribution for the benefit of the organisation.
 • Comparison of each model:

The adaptive model is different to the linear strategy in a various ways:

1. While examining the environment and at the same instance amending
changes in the adaptive model. However, in linear strategy, the time interval
for planning is understood, but not present.
2. Secondly, the adaptive model does not function in spades as the linear model
which accentuates on its goals. Instead, it targets the manager's attention and
the 'goal' is set on conjunction of the organisation with the environment.
3. The adaptive model's definition of strategie behaviours goes beyond that of
the linear model to incorporate not only major changes in products and
markets, but also subtle changes in style, marketing, quality, and other
nuances.
4. A fourth difference follows from the relative unimportance of advance
planning in the adaptive model.

Finally, in the adaptive model the environment is considered to be a complex

organizational life support system, consisting of trends, events, competitors, and
stakeholders. Environment is a major focus in determining organizational action.
The adaptive strategy rests on several assumptions about the environment. It
assumes that the environment and the organization are much more open to each
other, and that the environment is more dynamic and less susceptible to prediction.

The third strategy model, the interpretive model, is still emerging. Consequently,
Chaffee describes the parameters of this model as still unclear. A recurring theme
suggests that the model is based on social contract, rather than on an organismic or
biological view of the organization. Strategy in the interpretive model might be
defined as orienting metaphors or frames of reference that allow the organization and
its environment to be understood by organizational stakeholders. On this basis,
stakeholders are motivated to believe and to act in ways that are expected to produce
favourable results for the organization. The assumptions underlying this strategy
model are different from the traditional models in three ways: organizational reality
is incoherent in nature; strategy is an organization-wide activity, not just top-
management concern; and motivation, not information, is the critical factor in
achieving adequate strategie behaviour. These themes suggest a strategy model that
depends heavily on symbols and norms.
 Strategy Model Linear Adaptive Interpretive
Sample definition “…determination of “…concerned “…orientating metaphors
the basic long-term with the constructed for the purpose of
goals of an enterprise, development of a conceptualizing and guiding
and the adoption of the viable match individual attitudes of
courses of action and between the organisationalparticipants”
the allocation of opportunities and
resources necessary for risks present in the
carrying out these external
goals” environment and
the organisation’s
capabilities and
resources for
exploiting those
opportunities”
Nature of strategy Decisions, actions, Achieving a Metaphor, interpretive
plans ‘match’,
multifaceted
Focus of strategy Means, ends means Participants and potential
participants in the
organisation
Aim of strategy goal achievement coalignment legitimacy
with the
environment
Strategic change markets, change style, develop symbols, improve
behaviours products marketing, quality interactions and relationship
Associated terms Strategic planning, Strategic Strategic norms
strategy formulation management,
and implementation strategic choice,
strategic
predisposition,
strategic design,
strategic fit,
strategic thrust,
niche
Associated Formal planning, Price, Measures must be derived
measures new products, distribution policy, from context, may require
configuration of marketing qualitative assessment
products or businesses, expenditure and
market segmentation intensity, product
and focus, market differentiation,
share, authority changes,
merger/acquisition, proactiveness, risk
product diversity taking,
multiplexity,
integration,
futurity,
adaptiveness,
uniqueness
Associated authors
Chandler, Cannon, Hofer, Miles & Pettigrew, Chaffee
Child, Drucker, Snow, Mintzberg,
Glueck, Steiner & Steiner, Quinn,
Miner Kotier, Gluck,
Galbraith
 Source: An overview of strategy models (based on Chaffee, 1985)

Strategy opted at SICOM Ltd:

Due to fierce competition in the insurance sector, SICOM stills wants to be more
competitive and in addition meet its’ customer satisfactions by providing the best
insurance and financial service. However, while focusing on a particular strategy one
should not forget the human aspect i.e. our own employees. In order to achieve
competitive edge, innovation takes place in due time as simultaneously observing
and assessing external and internal conditions. So, this allows room for
improvements in weaker areas to bring innovation in the required lapse of time either
being a short or long one. At cultural level, the top level management has to ensure
that no sudden change in culture that may affect the productivity of the company.
The strategy must ensure to be able to assess the opportunities and risks with that of
capabilities and resources in order to have a maximum profitability at the end. IN
case of loss in an organization, this fact will intricate the stakeholders and thus
immediate and the most appropriate corrective actions have to be taken into action.

Reference:
CHAFFEE, E.E., 1985, Three Models of Strategy. Academy of Management Review,
10 (1), 89 -98