Name Vikram Kharvi

Subject Principles of Management

Programme & MMM Sem-I
Roll No MM-16-08

Q1. Define Strategy. Describe Miles and Snow's Strategic Archetypes giving examples of
any industry of your choice which fits the classification.
Strategy can be defined as the determination of the basic long-term goals and objectives of an
enterprise, and the adoption of courses of action and the allocation of resources necessary for
carrying out these goals.
Miles and Snow identified four business-level strategies: defender, prospector, analyzer, and
reactor.
Defender Strategy. Organizations implementing a defender strategy attempt to protect their
market from new competitors. As result of this narrow focus, these organizations seldom need
to make major adjustments in their technology, structure, or methods of operation. Instead, they
devote primary attention to improving the efficiency of their existing operations. Defenders
can be successful especially when they exist in a declining industry or a stable environment.
Defenders tend to ignore developments outside their product line areas. They do little
environmental scanning and limit product development. There is intensive planning towards
cost and efficiency issues.
Example – Amul
Such organizations focus on stability, internal efficiency and control. Since Amul operates in
a stable environment and is not very threatened with entry of new competitors as it has strongly
established itself in the market and built a strong trust and bond with its stakeholders through
the year
Internationally companies like Rolls-Royce, or luxury watch brand Rolex – are examples of
companies that defend their current niches, and aren't particularly interested in serving a
different market
Prospector Strategy. Organizations implementing a prospector strategy are innovative, seek
out new opportunities, take risks and grow. To implement this strategy, organizations need to
encourage creativity and flexibility. They regularly experiment with potential responses to
emerging environmental trends. Thus, these organizations often are the creators of change and
uncertainty to which their competitors must respond. In such an environment, creativity is more
important then efficiency.
Examples - FedEX, Microsoft : All these companies innovate, takes risks. For example –
FedEx and Microsoft has been constantly innovating new feature and newer offering for its
customers and have always stayed ahead of the competitors consistently.
Analyzer Strategy. Organizations implementing analyzer strategies attempt to maintain their
current businesses and to be somewhat innovative in new businesses. Some products are
targeted toward stable environments, in which an efficiency strategy designed to retain current
customers is employed. Others are targeted toward new, more dynamic environments.
They attempt to balance efficient production for current lines along with the creative
development of new product lines. Analyzers have tight accounting and financial controls and
high flexibility, efficient production and customized products, creativity and low costs.
However, it is difficult for organizations to maintain these multiple and contradictory
processes. new product lines.
Examples – Titan Industries, Maruti Suzuki -
Reactor Strategy. Organizations that follow a reactor strategy have no a consistent strategy-
structure relationship. Rather than defining a strategy to suit a specific environment, reactors
respond to environmental threats and opportunities in ad hoc fashion.
Sometimes these organizations are innovative, sometimes they attempt to reduce costs, and
sometimes they do both. Reactors are organizations in which top management frequently
perceive change and uncertainty occurring in their organizational environments but are unable
to respond effectively. Therefore, failed organizations often are the result of reactor strategies.
Example - Kinetic Motors
Such organizations respond to market in a very ad-hoc manner and don’t seem to have a long
term strategy.
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