Introduction

The planning school's advancement in 1971 was significantly aided by Kenneth Andrews and

Igor Ansoff's Matrix. And Kenneth Andrew's most important contribution was the concept of

corporate strategy, which he defined in 1971. According to him, a company's strategy entails

deciding on and disclosing its purposes, goals, and objectives; developing the key strategies and

plans for achieving these objectives; and defining the types of businesses the company will

pursue, the kind of economic organization it is or plans to be, as well as the characteristics of the

economic and non-economic sectors (Nickols, 2008). In 1965, Ansoff's Matrix, a logical and

bureaucratic procedure, was developed. It implies that an existing product in the current market

is positioned for growth and greater market penetration that a new product in the current market

is about product innovation and development, that an existing product and a new market are

about market exploration and development, and that a new product in a new market is about

diversification (Ritson, 2013).

After reading Chapter 4 of Strategic Management, the following are the three schools of

strategy: 

I. The Planning School

II.  School of Positioning 

III. The Resource-Based School

The planning school strategies refers to those from the prescription school who are more

focused on how the strategy should be stated than on how it should be built. The extended

approach, which is a component of the planning school strategy, is used by businesses to

separate the processes used to describe tasks into individual process steps with timetables. This

model addresses planning, scheduling, and budgeting because every business needs a program to

start and develop. This model "can be implemented in many organizations, like Tesco, to help

them become global organizations," according to the author (Ritson, 2013). 

Planning school is intended to connect an organization's strategy to the market where its products

will be sold. Because it occurs at different points in a product's life cycle, the planning school

strategy requires flexible planning; making markets with well-established trends its best fit. The

instability of the market and the product life cycle would not be good for a marketing strategy.

Example of the application of the Ansoff matrix is Starbucks. In one of the planned market

development quadrants, a new drink type would be given special attention on the menu,

aggressive promotion, and price cuts. Market developments include allowing cryptocurrency

payment for orders and allowing customers to place orders through the Starbucks app. Examples

of related diversification include adding kosher food to the menu and entering Israeli markets.

Unrelated diversification would entail selling specific goods and cups in Israel. Product

development in the Ansoff matrix would entail adding a new beverage to the menu.

The positional school uses a go-to-market strategy that is more data-driven. The objective is to

position a company's products in the most advantageous market circumstances (Ritson, 2013).

The strategic approach's cornerstone is the performance of the product. The market environment,

strategies, potential risks, and surroundings are all taken into account by this strategy. An

analysis is performed, taking into account each of these risks and potential opportunities, to

develop a strategic plan. Performance measurement and the idea that strategies must be precise,
thoroughly investigated, and well-founded are the fundamental tenets of the positional school

model. These ideas are necessary for the product to eventually develop a competitive advantage.

Porter's value chain serves as an example of the planning school strategy, which directly

addresses the flow of goods to consumers and takes into account logistics, operations, marketing,

sales, and service. The matrix created by the Boston Consulting Group shows how market share

and revenue growth are related (Ritson, 2013). The higher the market share, the faster the rate of

market expansion, and so on, the better the product is positioned for success in a particular

market (Ritson, 2013).

The final school strategy is the resource-based school. This organization was started in 1998 by

Robert Grant and in 1991 by Jay Barney. By prioritizing strengths and weaknesses in strategic

planning, this school method was developed so that business owners could concentrate on their

organization's internal activities. This university also helps the business outperform its rivals by

giving it a competitive advantage. As a result, they focus on internal opportunities and rewards

rather than external risks and risks (Ritson, 2013). Any organization that decides to adopt this

line of thinking will also learn how to prioritize honing and bolstering its core competencies as

well as differentiating to make sure that they are the best in the industry based on the firm's

knowledge and prowess.

I'll use Apple as an example from this school because they have their own distinctive software

and hardware platforms that have developed over decades as a result of countless discoveries and

improvements. The business has struggled to turn a profit due to its extremely narrow profit

margins, but it has consistently been able to develop new business plans that highlight its
strategic resources. They are now among the most valuable companies in the world thanks to

their strategies, which have produced years of record profits.

Reference:

Ritson, N. (2013). Strategic Management. Retrieved from

https://my.uopeople.edu/pluginfile.php/1685654/mod_page/content/8/StrategicMgmt.pdf

Nickols, F. (2008, January). Strategy, Strategic Management, Strategic Planning and Strategic

Thinking. ResearchGate | Find and share research. Retrieved from

https://www.researchgate.net/publication/

242698739_STRATEGY_STRATEGIC_MANAGEMENT_STRATEGIC_PLANNING_AND_

STRATEGIC_THINKING