This PPT slide, part of the 38-slide Ten Schools of Thought on Strategic Management PowerPoint presentation, outlines a unique perspective on strategy formulation, positioning it as a negotiation process. It introduces the "School of Power," which emphasizes the political dimensions of strategy within organizations. 2 key concepts are highlighted: micro power and macro power.

Micro power focuses on internal dynamics, viewing strategy development as a political activity involving bargaining and persuasion among various stakeholders. This approach suggests that successful strategy formulation requires navigating interpersonal relationships and conflicts within the organization.

Macro power, on the other hand, expands the lens to consider the organization’s influence over external entities. It highlights how firms leverage their power in alliances, joint ventures, and other networks to negotiate favorable outcomes. This duality of power dynamics is essential for understanding how strategies are crafted and implemented.

The slide categorizes this school as descriptive rather than prescriptive, indicating that it seeks to explain how strategies emerge rather than dictate how they should be formulated. The base principle is rooted in political science, which underscores the importance of power relations in strategic decision-making.

Intended strategies are focused on promotion, suggesting that organizations should actively advocate for their interests in negotiations. The realized strategy emphasizes a "hard rather than share" approach, implying a more assertive stance in negotiations to secure advantageous positions.

Overall, this slide provides valuable insights into the interplay of power and strategy, making it relevant for executives seeking to understand the complexities of organizational dynamics and negotiation tactics.

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Henry Mintzberg Strategy Development Joint Venture Positioning