The reason the model works so well is based on the fact that everything that really matters in a business is covered - customers, suppliers, new entrants, and substitute products, along with the rivalry that is seen within the industry. That last issue is one about which many individuals forget when they are planning for a business. They focus on customers and suppliers, and they consider their products, but they fail to acknowledge the idea that there is already a rivalry in that industry and that it is only going to become more significant. It is not always the customers or the product that causes an issue. It can also be the other competitors and their ways of bringing business to them and away from the "new guy" on the scene.
Edgar Schein (1978) dealt with the dynamics of a person's career, and he also addressed the "anchors" used in that career (Schein, 1985). In careers that involve the school system, there is a culture that actually hinders the strategic direction and goals of the organization. One would think that those goals would be enhanced because everyone who works for the school would be interested in moving in the same direction. Unfortunately, however, that is generally not the case. Instead of enhancing things for a school, the fact that everyone is interested in education causes problems because they all have different ideas based on the best way to educate other people. Those ideas clash, and when they do it can be difficult to get enough people to come to an agreement to move forward in a productive way. When educators and...
Power and politics both matter in strategy creation, too, because those who have power or who move in political circles are often able to do much more than those who do not have these connections. Connections or power do not guarantee the success of a strategy, of course, but what does matter in these kinds of cases is the opportunity to have resources that could go toward making a strategy work. Politics, power, and culture all add up when strategy is being created, but the ultimate issue with strategy is whether the strategy is a good one that is feasible. Power or other factors alone will not be enough, in other words, to make sure that a company moves forward with a strategy it has created. The culture of that company and how it interacts with other companies in its industry can also have a strong impact on whether the strategy is successful.
References
Mintzberg, H. (2005). Strategy safari: A guided tour through the wilds of strategic management. Chapters 7, 8, & 9. New York: Free Press.
Schein, E. (1978). Career Dynamics: Matching Individual and Organizational Needs. Reading, MA: Addison-Wesley.
Schein, E. (1985). Career Anchors: Discovering your Real Values. San Diego, CA:…
