Comparison of Value Generation Strategies Between Planned and Emerging Strategies: A Study Based on Games of Companies
DOI:
https://doi.org/10.5585/ijsm.v11i1.1815Keywords:
Strategic Planning, Intended Strategy, Emerging Strategies, Business Simulator, Competition.Abstract
This study aims to analyze the economic results of the planned strategies compared to the emergent strategies in decision-making. The theoretical background emphasizes some aspects, like the strategy concept evolution throughout the time, the typology of strategies proposed by Mintzberg, the comparison between competition and cooperation, and the use of a business simulator as a tool for business research purposes. As a controlled experiment, the EGS simulator (Management Exercise Simulated) allowed comparison of the economic results of the two decision-making situations. The findings show that when planned strategies were implemented without corrections, the value generated (expressed by the internal rate of return IRR = 1.51%) was greater than in the case of adjusted emerging strategies in three periods (IRR= 1.40%). Comparing the two situations, it is possible to find a value added advantage of 7.86% in favor of the planned strategies, indicating the competition might be responsible for the value decreasing in real environment. Analyzing the performance degrees reached by the competitors, the ranking results show that there is no association between planned strategy and emerging strategies. Although the business simulators can be considered weak approximations for the business environment, the experiment contributed new evidence of the competition rise in oligopoly industries and a new methodological approach for studying this phenomenon.
Downloads
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2012 Iberoamerican Journal of Strategic Management
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
The author (s) authorize the publication of the manuscript in the journal;
The author (s) guarantee that the contribution is original and unpublished and that it is not being evaluated in another journal (s);
The journal is not responsible for the opinions, ideas and concepts emitted in the texts, as they are the sole responsibility of its author (s);
Editors reserve the right to make textual adjustments and adapt to the publication's rules.
Authors retain the copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Attribution License - 4.0 (CC BY-NC-SA 4.0) that allows the sharing of the work with acknowledgment of authorship and initial publication in this magazine.
Authors are authorized to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (eg, publishing in institutional repository or as a book chapter), with acknowledgment of authorship and initial publication in this journal.
Authors are allowed and encouraged to publish and distribute their work online (eg in institutional repositories or on their personal page) at any point before or during the editorial process, as this can generate productive changes, as well as increase impact and citation of the published work (see “The Effect of Open Access” at http://opcit.eprints.org/oacitation-biblio.html).
Authors can use ORCID for identification. An ORCID identifier is unique to an individual and acts as a persistent digital identifier to ensure that authors (particularly those with relatively common names) can be distinguished and their work appropriately assigned.