DEVELOPING STRATEGIES
The various approaches applicable for development strategies are as follows:
1. Adaptive Approach
2. Intuition approach
3. Strategic Factor Approach
4. Entrepreneurial approach
5. Niche approach
Adaptive Approach
This approach is based on developing strategies in view of the perceived changes in the
environment at a given point of time, and formulating a set of decision rules leading
towards an appropriate solution in successive steps.
Intuition Approach
This approach is based on developing strategies in view of the intuition of the promoter or
chief executive of the organization, with little or no interference from others in the
organization. They move on the basis of prior experience in a similar setting for decision
making.
Strategic Factor Approach
This approach is based on developing strategies by determining the strategic factors are
crucial for organizational success. The strategic factors existing in the different functional
areas of the organization are: finance, marketing, personnel, operations and so on.
Entrepreneurial approach
This approach is based on developing strategies by a constant search for opportunities
existing in the environment and exploiting them for the benefit of the organization.
According to Drucker, “the entrepreneur always searches for change, responds to it and
exploits it as an opportunity”. This approach is generally adopted by young executives and
the heads of the family-owned businesses.
Niche Approach
This approach is based on developing strategies by picking propitious niches in which the organization wishes to operate. A ‘niche’ is a sub segment of a major market segment that no other firm has chosen to enter directly. For example, a particular buyer group, geographical area, or segment of production line.