Page 24 - Strategic Management
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Strategic Management 4 School of Strategy
4 Schools of Strategy
4.1 Introduction - Definition - there are three ‘schools’ of strategy
4.2 The ‘planning’ school
(Andrews, 1987, Ansoff, 1965)
• based on past trends, forecasts and stable structures and environments
• uses a very bureaucratic a rational manner
• tries to achieving a ‘fit’ between the organisational strategy and its environment.
• Requires detailed and inflexible planning not suitable in turbulent markets.
Existing product New product
Expansion ie,
Present increase in market Product development
market penetration or innovation
New Market development
market (sometimes called
'exploration')
Figure 4.1 The Ansoff Matrix
Source: adapted from Ansoff 1965
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