Question

Mintzberg and Waters explore the process by which strategies form within organizations. They compare intended strategies (strategies that come from a planning process) with realized strategies (what the organization actually did). They provide a framework to study the difference between these two concepts through a continuum where at one end lies the completely planned strategy and at the other end lies the completely emergent strategy. In the planned strategy, intentions are very clear and directly translated into actions. In emergent strategies, decisions emerge from bargaining, chance and positive feedback. An example is the strategy based on consensus. In the middle of these two extremes lie what the authors call the entrepreneurial, ideological and umbrella strategies. Instead of saying that any one type of strategy is better than the other, the authors claim that what is best depends on the nature of the organization.

Thirty years ago, Hooters of America had advanced a successful chain restaurant concept which combined “good food, cold beer and pretty girls.” After a period of rapid growth and a gauntlet of legal and community challenges, Hooters began losing ground to competitors in the expanding “breastaurant” sector in the 2000s.

Using Mintzberg and Water’s framework, evaluate and describe the origin of Hooters’ strategy.

Answer 1

Mintzberg and Water’s framework:

Mintzberg and Waters explore the process by which strategies form within organizations. They compare intended strategies (strategies that come from a planning process) with realized strategies (what the organization actually did). They provide a framework to study the difference between these two concepts through a continuum where at one end lies the completely planned strategy and at the other end lies the completely emergent strategy.

In the planned strategy, intentions are very clear and directly translated into actions.

In emergent strategies, decisions emerge from bargaining, chance and positive feedback.

Strategy based on consensus - Instead of saying that any one type of strategy is better than the other, the authors claim that what is best depends on the nature of the organization.

Review of Mintzberg and Water’s framework for the Hooter’s strategy;

In Hooter’s case, the start of the business is with the planned strategy approach. Hooter planned the strategy for his restaurant business and launched the business as per his planned strategy. Thus the planned strategy works well and Hooter had achieved great success in his business for initial time of his business. Hooter used the planned strategy concept of “Good Food, Cold Beer and Pretty Girls”. This was the planned strategy and the actions were taken as per the planned strategy and it works well. Thus we can say that as per Mintzberg and Water framework, the planned strategy worked here for Hooter.

Emergent Strategy Approach: But later, due to certain other issues and factors, this concept was affected and the planned strategy was not working for Hooter business. Hooter restaurant business is losing his sales and the competition is taking away the business from Hooter. Thus here the emergent strategy concept is to be applied by the Hooter, because there are some factors which are not covered in planned strategy and these factors are becoming stronger and affecting the Hooter’s restaurant Business. Now Hooter need to understand the emergent factors which are affecting the business and needs to develop a emergent strategy so that he can manage his business. Thus in this scenario the approach changed from planned strategy to emergent strategy.

Thus based on the Hooter’s case, we can say that the appropriateness of the strategy for any business is purely depends upon the situation of the business or circumstances of the business and the use of strategy either planned or emergent strategy is purely depends up the situations of the business or circumstances of the business.