Dim 1001
Dim 1001
Dim 1001
Figure 2.2
Most strategies that companies espouse are intended strategies. For example, when
Howard Schultz founded Starbucks, he had the idea of creating a third place (between work
and home) where people could enjoy traditional Italian-style coffee. He knew that the smell
of the coffee and the deeper, darker, stronger taste would attract a new set of customers to
enjoy coffee the way he thought it should be enjoyed. This worked, but as Starbucks drew,
customers began asking if they could have nonfat milk in their lattes, or if they could get
flavor shots in their coffees. Finally, after repeated requests from his store managers who
kept hearing customers demanding such things, Schultz finally relented.
Emergent strategies, on the other hand, consist of the strategies that evolve from the
grassroots of the organization and can be thought of as what organizations actually do, as
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opposed to what they intend to do. Strategy can also be thought as a pattern in a stream of
decisions or actions. For example, when Honda Motor Company first entered the U.S.
market with its 250-cc and 350-cc motorcycles in 1959, it believed that no market existed for
its smaller 50-cc bike. However, the sales on the larger motorcycles were sluggish, and
Japanese executives running errands around Los Angeles on Honda 50s attracted a lot of
attention, including that of a buyer with Sears, Roebuck. Honda found a previously
undiscovered market as well as a new distribution outlet (general retailers) that it had not
planned on. This emergent strategy gave Honda a 50 percent market share by 1964.
The distinction between intended and emergent strategies has important implications
for human resource management. The new focus on strategic FIRM has tended to focus
primarily on intended strategies. Thus HRMs role has been seen as identifying for top
management the people-related business issues relevant to strategy formulation and then
developing HRM systems that aid in the implementation of the strategic plan.
However, most emergent strategies are identified by those lower in the organizational
hierarchy. It is often the rank-and-file employees who provide ideas for new markets, new
product, and new strategies. HRM plays an important role in facilitating communication
throughout the organization, and it is this communication that allows for effective emergent
strategies to make their way up to top management. For example, Starbucks Frappucino was
a drink invented by one of the store employees in California; Starbucks leaders (including
Schultz) thought it was a terrible idea. They fought it in a number of meetings, but the
employee kept getting more and more information supporting her case for how much
customers seemed to like it. The leaders finally gave the go-ahead to begin producing it, and
it has become a $1 billion a year product, and one that has contributed to the Starbucks
brand.
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Table 4.1
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