Do you agree that "Strategy is partly proactive and partly reactive"? Give reasons for your answer.
Do you agree that "Strategy is partly proactive and partly reactive"? Give reasons for your answer.
A company's strategy is typically a blend of
- proactive actions (deliberate strategy) on the part of managers to improve the company's market position and Financial performance and
- as-needed reactions (emergent strategy) to unanticipated developments and fresh market conditions.
Thus, it is evident that strategy is partly proactive and partly reactive.
In proactive strategy, organizations will analyze possible environmental scenarios and create strategic framework after proper planning and set procedures and work on these strategies in a predetermined manner. However, in reality no company can forecast both internal and external environment exactly. Everything cannot be planned in advance. It is not possible to anticipate moves of rival firms, consumer behaviour, evolving technologies and so on.
There can be significant deviations between what was visualized and what actually happens. Strategies need to be attuned or modified in the light of possible environmental changes. There can be significant or major strategic changes when the environment demands. Reactive strategy is triggered by the changes in the environment and provides ways and means to cope with the negative factors or take advantage of emerging opportunities.
