Page 21 - Strategic Management

Strategic Management 3 The Level and Formulation of Strategy

known etc.

Example 2 Bottom-up

Out in the field, a salesman visits a customer. The product isn’t right, and together they work out some modifications.
The salesman returns to the company and puts the changes through; after two or three more rounds, they finally get it
right. A new product emerges, which eventually opens up a new market. The company has changed strategic course’

3.4.3 Opportunistic Strategy
Strategies may come about in or entrepreneurial ways. An organisation may take advantage of changes in the environment
or recognise new skills in an opportunistic manner. Alternatively, a firm may be set up by an entrepreneur because of an
opportunity in the market place.

In the entrepreneurial mode, strategy-making is dominated by the active search for new opportunities, and is characterised
by dramatic leaps forward in the face of uncertainty. Strategy is developed by significant bold decisions being made.
Growth is the dominant goal of the organisations, and in uncertain conditions, this type of mode can result in the
organisation making significant gains. Entrepreneurial mode - requires the strategy-making authority to rest with one
powerful individual. The environment must be flexible, and the organisation oriented toward growth. These conditions
are most typical of organisations that are small and/or young.

The organisation operating in this mode suggests by its actions that the environment is not flexible, it is a force to be
confronted and controlled. Power is centralised in the chief executive, with an unwillingness to ‘submit’ to authority.

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