Explain the Five Ps of strategy

1.Strategy as a plan
Strategy is seen as a consciously intended course of action, guideline or set of guidelines to deal with a situation. The steps are carefully crafted with intention of success to the company. The plan should incorporate the business model which refers to “the process through which the company will make profit”. This calls for a well formulated strategic plan which is a formal roadmap linking the organization from where it is (mission) to where it is going (vision).
Strategy as a plan is critical as the adage goes “he who fails to plan, plans to fail”. It is however important to note that the environment of the firm is full of turbulence and therefore the plan must be flexible enough to adjust to a shifting situation.

2. Strategy as a Ploy
As a ploy, strategy becomes a specific maneuver intended to outwit or trick competitors. It could be done in a creative manner that the competitor fails to realize the trick and therefore reacts differently leaving the other firm to enjoy from the same. For example, a corporation may threaten to expand a plant capacity to discourage a competitor from building a new plant. Here the real strategy is the threat, not the expansion.

3 Strategy as a Pattern
As a pattern, strategy emerges from a stream of actions over time whether intended or not.
Mintzberg argues that if strategies can be intended then they can also be realised. Thus defining strategy as a plan is not sufficient; we need a definition that encompasses the resulting behaviour.
Thus by this definition, it is consistency in behaviour whether intended or not. Mintzberg
suggests that the definition of strategy as a plan and a pattern can be quite independent of each other. Plans may go unrealised while patterns may appear without preconception. He labels the first definition as intended strategy and the latter realised strategy.

4. Strategy as a Position
As a position, strategy tries to locate an organization in the industry and its place as compared to its competitors. By this definition strategy becomes the mediating force or ‘match’ between the organization and the environment i.e. between the internal and external context. The position of the firm could be its downfall in the industry. Only when the firm is in a better position use this strategy as the customers are familiar and loyal to the leaders. Position could be created using differentiated ways of doing things e.g. through corporate social responsibility (CSR) which makes the customers aware of their existence and therefore relate with them. Position has been used by many to give them competitive advantage e.g. Apple and their constant innovation, Safaricom and innovation, and Equity Bank and its customer inclusion.

5. Strategy as a Perspective
As a perspective, strategy is seen as an abstract concept that exists in the minds of interested parties particularly the executives running the firm and how they interpret their surroundings for competitiveness. Its contents consists not just a chosen position but of an ingrained way of perceiving the world. Some organizations for example are aggressive pacesetters, creating new technologies and exploiting new markets; while others perceive the world as stable and set. This depends on how they are ready to make lemonade out of the lemons by adopting unique perspectives which will help the firm explore and exploit opportunities which others just can not see. This calls for creativity and openness of an organization to receive new ideas and take risk to change.

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Titany answered the question on October 19, 2021 at 06:56