School of Thought (RATIONALIST) Flashcards
What are the 3 ‘schools’ of strategic theory?
Rationalist, adaptive and interpretative
What kind of approach does the RATIONALIST school take?
Determinist approach
What are the main focuses of the RATIONALIST school?
The strategic behaviour of organisations
The structure of markets and their interactions
Chaffee (1985) suggests a linear approach to the RATIONALIST school. What do they go on to discuss about this?
Denoting methodical, directed and sequential action.
What does the ‘EXTERNAL ENVIRONMENT SCHOOL’ focus on (according to Kung, 2008, p110)?
(RATIONALIST)
The external factors that provide a competitive and comparative advantage.
Name two theorists heavily associated with the work of the RATIONALIST school?
Chandler
Porter
Strategy is ‘ the determination of the basic long-term goals and objectives of an enterprise, and an adoption of courses of action and the allocation of resources necessary for carrying out these goals’.
(RATIONALIST)
(Chandler, 1969, p.383)
According to the RATIONALIST school, strategy is essentially a plan. What kind of analysis and evaluation are formed?
The methodical and sequential analysis of the environment. The evaluation of how resources can be used to take advantage of opportunities or address threats.
What kind of forces determine the success and long-term viability of a media organisation?
(RATIONALIST)
Competitive forces in the marketplace.
In what way can the impact of external environment be assessed?
Name 3.
(RATIONALIST)
Changing technologies
Industry conditions and structures
Regulatory or policy issues
What is the most recognisable model for the RATIONALIST school of thought?
Porter’s Five Forces Model
What does the Porter’s Five Forces Model do?
RATIONALIST
It assumes that above average performance requires an optimal strategic position through close analysis of dynamics of competitive rivalry.
The model [P5F] argues that a firm ‘should design strategies that allow it to excercise bargaining power over suppliers and customers while preventing new entrants and rivals from entering its market’.
(RATIONALIST)
Kung (2008, p.115)
What allows an organisation to offer better value to their product/service than opposed to competitors within the same market?
(RATIONALIST)
Originality
What are the main challenges of applying a RATIONALIST school of thought to media industry’s strategies?
Name 3.
Difficult to apply to a rapidly changing industry (boundaries are progressively breaking down).
The industry is competing with industries out with the media sector.
A rationalist approach (opposed to adaptive or interpretive) is based on the CONTENT of the strategic plan.
