The paper "Prescriptive and Emergent Strategy - the UK Economy " is a macro and microeconomics case study. Over the years, strategic management concepts in business have evolved. In this regard, the concept evolved to incorporate various inter-related but independent components such as strategic planning, management, and evaluation. Although related, the three components operate under distinct principles based on the contextual business environments and business competition standards. Strategic planning incorporates the process of developing a working framework for corporations in order to enhance efficiency and increased profitability. Traditionally, organizations adopted the prescriptive strategic planning approach.
However, changing market environments and needs necessitated the need for strategic changes in the market to enhance increased flexibility and efficiency in the market. Consequently, organizations resulted in the adoption of new strategic planning measures such as emergent strategies in strategic planning. The United Kingdom (UK) economy experienced increased market challenges because of the 2007 world financial crisis. In this case, general earnings the economy reduced leading to consumers' behavior change. In an analysis of the UK market struggle in the post-financial crisis period, Sharma (2013, p. 222) established that consumer spending behaviors changed in the economy resulting in reduced spending on luxury and secondary needs due to decreased household earnings of more than 6% in the UK.
Consequently, as the study notes, organizational profits in the economy significantly declined. However, in the recent past, the economic situation has changed. In this regard, gradual economic development and increased earnings have reverted consumers buying behavior into increased spending. As a result, organizations in the market have experienced increased profits. This essay seeks to establish the role of strategic planning in enhancing increased organizational performance for corporations in the UK market.
In essence, the review seeks to establish the significance, merits, and implications of strategic planning in the wake of improved customer spending in the economy. Finally, besides offering a summary conclusion, the review offers recommendations on best practices in strategic planning. Prescriptive Strategies Strategic planning, as Simerson (2011, p. 25) argues, is a process through which, organizations enhance increased performance through the adoption of proactive measures. In this regard, involved organizations partake in the planning. In this case, the organizations develop objectives and goals that ought to be achieved in the long run.
This form of strategic planning is categorized as prescriptive strategies. In this form of strategic planning, organizational management develops a series of objectives and milestones for achievement. As such, organizational performance and success are hedged on the achievement of these goals and objectives. Consequently, organizational resources are developed and geared towards the attainment of the set goals. Ciavarella (2003, p. 338) conducted a study to evaluate the merits and implications of prescriptive strategic planning. The study evaluated the gains and success factors enhanced by such a planning strategy.
In its analysis, the study established that prescriptive strategic planning enhanced increased organizational efficiency and reduced confusion and duplication of efforts. The study revealed that organizations adopting this management strategy, recorded increased performance, and increase success levels probabilities as compared to organizations that failed to apply the concept. Consequently, the study concluded that prescriptive strategic planning facilitated increased organizational efficiency, reduced costs of production as well as increased profit margins. Therefore, in its recommendations, it advocated for the application of this strategy in organizations regardless of the organizational size and capital base.
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