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Notes 4

The document outlines four decision-making modes in strategy development: Entrepreneurial Mode focuses on opportunities driven by a powerful individual; Adaptive Mode reacts to existing problems with fragmented strategies; Planning Mode involves systematic analysis and both proactive and reactive strategies; and Logical Incrementalism allows strategies to emerge through an interactive process of experimentation and debate. Each mode is suited to different organizational contexts and challenges. The emphasis varies from bold decision-making to incremental adjustments based on consensus and environmental changes.

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Notes 4

The document outlines four decision-making modes in strategy development: Entrepreneurial Mode focuses on opportunities driven by a powerful individual; Adaptive Mode reacts to existing problems with fragmented strategies; Planning Mode involves systematic analysis and both proactive and reactive strategies; and Logical Incrementalism allows strategies to emerge through an interactive process of experimentation and debate. Each mode is suited to different organizational contexts and challenges. The emphasis varies from bold decision-making to incremental adjustments based on consensus and environmental changes.

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goswamiharshita973
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Entrepreneurial Mode • Strategy is made by one powerful individual who has entrepreneurial

competencies like innova on and risk taking. The focus is on opportuni es. Problems are secondary.
opportuni es. Problems are secondary. Generally the founder is the entrepreneur and the strategy is
guided by his or her own vision of direc on and is exemplified by bold decisions. Adap ve Mode •
Some mes referred to as “muddling through,” this decision-making mode is characterized by
reac ve solu ons to exis ng problems, rather than a proac ve search for new opportuni es. Much
bargaining goes on concerning priori es Much bargaining goes on concerning priori es of objec ves.
Strategy is fragmented and is developed to move the corpora on forward incrementally. This mode
is typical of most universi es, many large hospitals and a large number of governmental agencies.
Planning Mode • This decision making mode involves the systema c gathering of appropriate
informa on for situa on analysis, the genera on of feasible alterna ve strategies, genera on of
feasible alterna ve strategies, and the ra onal selec on of the most appropriate strategy. It includes
both the proac ve search for new opportuni es and the reac ve solu on of exis ng problems.
Logical Incrementalism • In this mode, top management first develops reasonably clear idea of the
corpora on's mission and objec ves. Then, in its development of strategies, it chooses to use “an
interac ve process in which the organiza on probes the future, experiments and learns from a series
of par al (incremental) commitments rather than through global formula ons of total strategies”.
Thus the strategy is allowed to emerge out of debate, discussion, and experimenta on. allowed to
emerge out of debate, discussion, and experimenta on. • This approach appears to be useful when
1. The environment is changing rapidly, 2. It is important to build consensus, and 3. Needed
resources are to be developed before commi ng the

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