The Power School

Strategy Formation as a Process of Negotiation

Levine Jade L. LuluYra D. Salazar

BA 190 – Strategic ManagementUniversity of the Philippines

Prof. Mita Angela M. Dimalanta

strategy formation as an obvious process of

influence use of power and politics to negotiate

strategies favorable to specific concerns The term “Power” in this type of strategy is

used to describe the exercise of influence beyond purely economic

“Politics” – exploitation of power

2 Branches of Power

School

Micro power looks at strategy-making in the

form of political games which involves bargaining, persuasion, confrontation, and forming coalition groups among the organization.

Micro Power

Insurgency Counterinsurgency Sponsorship Alliance-building Empire-building Budgeting Expertise

Political Games in Organizations

Lording Line versus staff Rival camps Strategic candidates Whistle-blowing Young turks

Various actors and coalitions of actors pursue

their own interests and agendas. Subordinate groups can enter into the

processes of determining and distorting strategies.

Key points about Micro Power:

The achievement of a strategy as an

integrated perspective, a single-shared vision, seems unlikely under political circumstances.

In political circumstances, we should expect no shortage of strategies as ploys.

Key points about Micro Power:

Ensure the strongest members are in

leadership Ensure that all sides of an issue are fully

debated May be required to stimulate necessary change

that is blocked by the more legitimate systems of influence

Ease the path for the execution of change

Benefits of Politics

the use of power by the organization

handling the demands of external factors and taking advantage for the organization’s benefit

Macro Power

Macro power is the process of acting upon or

negotiating with, rather than reacting to, the external environment

External Control by Organizations

An organization can simply deal with each

demand as it rises

An organization can strategically withhold and disclose information

An organization can play one group against the other

3 basic strategies

It is an attempt to cope with political forces

through a rational approach.

Stakeholder Analysis

Stakeholder behavior analysis

Stakeholder behavior explanation

Coalition analysis

Stakeholder Strategy Formulation

controlling the power of external factors by

controlling their behavior.

Strategic Maneuvering

Networks Collective Strategy Strategic Alliances Strategic Sourcing

Cooperative Strategy Making

It is hard to describe strategy formation as a

process devoid of power and politics. The power school has introduced words

necessary to the field of strategic management such as “coalition”, “political game” and “collective strategy”.

Contribution of the Power School

Bhandari, A. (2013). Strategic Management : A

Conceptual Framework. New Delhi: McGraw Hill Education Private Limited

Changing Works. (2016). Mintzberg’s Political Games. Retrieved from http://changingminds.org/explanations/behaviors/games/mintzberg_game.htm

Minztberg, H. (1998). Strategy safari : a guided tour through the wilds of strategic management. New York: The Free Press.

References