{"id":35,"date":"2014-05-13T17:44:21","date_gmt":"2014-05-13T17:44:21","guid":{"rendered":"http:\/\/opentextbc.ca\/strategicmanagement\/?post_type=chapter&p=35"},"modified":"2019-07-02T21:55:21","modified_gmt":"2019-07-02T21:55:21","slug":"intended-emergent-and-realized-strategies","status":"publish","type":"chapter","link":"https:\/\/opentextbc.ca\/strategicmanagement\/chapter\/intended-emergent-and-realized-strategies\/","title":{"raw":"Intended, Emergent, and Realized Strategies","rendered":"Intended, Emergent, and Realized Strategies"},"content":{"raw":"
\r\n

Learning Objectives<\/p>\r\n\r\n<\/header>\r\n

\r\n
    \r\n \t
  1. Learn what is meant by intended and emergent strategies and the differences between them.<\/li>\r\n \t
  2. Understand realized strategies and how they are influenced by intended, deliberate, and emergent strategies.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\nA few years ago, a consultant posed a question to thousands of executives: \u201cIs your industry facing overcapacity and fierce price competition?\u201d All but one said \u201cyes.\u201d The only \u201cno\u201d came from the manager of a unique operation\u2014the Panama Canal!\u00a0And even there, they are building a second one connecting the Atlantic to Pacific oceans scheduled to open in 2015. This manager was fortunate to be in charge of a venture whose services are desperately needed by shipping companies and that offers the only simple route linking the Atlantic and Pacific Oceans. The canal\u2019s current success will be challenged with this second goes into operation. With the current increase in globalization, the additional boat transportation make both canals\u00a0appear to be guaranteed to have many customers for as long as anyone can see into the future.\r\n\r\nWhen an organization\u2019s environment is stable and predictable, strategic planning can provide enough of a strategy for the organization to gain and maintain success. The executives leading the organization can simply create a plan and execute it, and they can be confident that their plan will not be undermined by changes over time. But as the consultant\u2019s experience shows, only a few executives\u2014such as the manager of the Panama Canal\u2014enjoy a stable and predictable situation. Because change affects the strategies of almost all organizations, understanding the concepts of intended, emergent, and realized strategies is important (Figure 1.5 \"Strategic Planning and Learning: Intended, Emergent, and Realized Strategies\"<\/a>). Also relevant are deliberate and nonrealized strategies. The relationships among these five concepts are presented in Figure 1.6 \"A Model of Intended, Deliberate, and Realized Strategy\"<\/a>\u00a0(Mintzberg & Waters, 1985).\r\n
    \r\n

    <\/a>Figure 1.5: Strategic Planning and Learning: Intended, Emergent, and Realized Strategies<\/p>\r\n\r\n<\/header>\r\n

    \r\n\r\nStrategic planning, usually in the form of a business plan, is a key aspect of creating a new venture. Many well-known firms, however, owe their success more to their ability to adapt than their original plan. Most firms begin by pursuing their plans (also known as intended strategy), but unexpected opportunities that arise over time can lead firms in much different directions than could have ever been anticipated (emergent strategy). Ultimately, the intended and emergent strategies each contribute to a firm's realized strategy. In the cases below, the original intended strategy can barely be detected within today's strategy.\r\n\r\n\r\n\r\n\r\n\r\n
    Examples of Intended, Emergent, and Realized Strategies<\/caption>\r\n
    <\/td>\r\nIntended Strategy<\/th>\r\nEmergent Strategy<\/th>\r\nRealized Strategy<\/th>\r\n<\/tr>\r\n
    \"A<\/a><\/td>\r\nDave McConnell aspired to be a writer. When his books weren't selling, he decided to give out perfume as a gimmick.<\/td>\r\nThe perfume McConnell gave out with his books were popular, inspiring the foundation of the California Perfume Company.<\/td>\r\nThe company changed its name to Avon in 1939, and it's direct marketing system remained popular for decades. Avon is now available online and in retail outlets worldwide.<\/td>\r\n<\/tr>\r\n
    \"a<\/a><\/td>\r\nWhen father and son team Scott and Don Rasmussen were fired from New England Whalers, they envisioned a cable television network that focused on sports events in the state of Connecticut.<\/td>\r\nAs the network became successful, ESPN branched out beyond the local softball games and demolition derbies that were first broadcasted.<\/td>\r\nESPN is now billed as the worldwide leader in sports, owning several ESPN affiliates as well as production of ESPN magazine, ESPN radio, and broadcasting for ABC.<\/td>\r\n<\/tr>\r\n
    \"as<\/a><\/td>\r\nIn 1977, a cash-strapped advertiser gave a radio station managed by Lowell Paxson 112 electric can openers to pay off an overdue bill. The can openers were offered over the air for $9.95 and quickly sold out.<\/td>\r\nAn idea emerged. Soon the radio station featured a regular show called \"Suncoast Bargaineers.\" In 1982, Paxson and a partner launched the Home Shopping Club on local cable television in Florida.<\/td>\r\nToday the Home Shopping Network has evolved into a retail powerhouse. The company sells tens of thousands of products on television channels in several countries and over the Internet.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<\/div>\r\n

    Intended and Emergent Strategies<\/h1>\r\nAn [pb_glossary id=\"2541\"]intended strategy[\/pb_glossary]<\/strong>\u00a0is the strategy that an organization hopes to execute. Intended strategies are usually described in detail within an organization\u2019s strategic plan. When a strategic plan is created for a new venture, it is called a business plan. As an undergraduate student at Yale in 1965, Frederick Smith had to complete a business plan for a proposed company as a class project. His plan described a delivery system that would gain efficiency by routing packages through a central hub and then pass them to their destinations. A few years later, Smith started Federal Express (FedEx), a company whose strategy closely followed the plan laid out in his class project. Today, Frederick Smith\u2019s personal wealth has surpassed $2 billion, and FedEx ranks eighth among the World\u2019s Most Admired Companies according to Fortune<\/em> magazine. Certainly, Smith\u2019s intended strategy has worked out far better than even he could have dreamed (Donahoe, 2011).<\/a>\r\n\r\n[caption id=\"attachment_2267\" align=\"aligncenter\" width=\"400\"]\"Intended,<\/a> Figure 1.6: A Model of Intended, Deliberate, and Realized Strategy [Image description]<\/a>[\/caption]Emergent strategy has also played a role at Federal Express. An [pb_glossary id=\"2542\"]emergent strategy<\/strong>[\/pb_glossary]\u00a0is an unplanned strategy that arises in response to unexpected opportunities and challenges. Sometimes emergent strategies result in disasters. In the mid-1980s, FedEx deviated from its intended strategy\u2019s focus on package delivery to capitalize on an emerging technology: facsimile (fax) machines. The firm developed a service called ZapMail that involved documents being sent electronically via fax machines between FedEx offices and then being delivered to customers\u2019 offices. FedEx executives hoped that ZapMail would be a success because it reduced the delivery time of a document from overnight to just a couple of hours. Unfortunately, however, the ZapMail system had many technical problems that frustrated customers. Even worse, FedEx failed to anticipate that many businesses would simply purchase their own fax machines. ZapMail was shut down before long, and FedEx lost hundreds of millions of dollars following its failed emergent strategy. In retrospect, FedEx had made a costly mistake by venturing outside of the domain that was central to its intended strategy: package delivery (Funding Universe).\r\n\r\nEmergent strategies can also lead to tremendous success. Southern Bloomer Manufacturing Company was founded to make underwear for use in prisons and mental hospitals. Many managers of such institutions believe that the underwear made for retail markets by companies such as Calvin Klein and Hanes is simply not suitable for the people under their care. Instead, underwear issued to prisoners needs to be sturdy and durable to withstand the rigors of prison activities and laundering. To meet these needs, Southern Bloomers began selling underwear made of heavy cotton fabric.\r\n\r\nAn unexpected opportunity led Southern Bloomer to go beyond its intended strategy of serving institutional needs for durable underwear. Just a few years after opening, Southern Bloomer\u2019s performance was excellent. It was servicing the needs of about 125 facilities, but unfortunately, this was creating a vast amount of scrap fabric. An attempt to use the scrap as stuffing for pillows had failed, so the scrap was being sent to landfills. This was not only wasteful but also costly.\r\n\r\nOne day, cofounder Don Sonner visited a gun shop with his son. Sonner had no interest in guns, but he quickly spotted a potential use for his scrap fabric during this visit. The patches that the gun shop sold to clean the inside of gun barrels were of poor quality. According to Sonner, when he \u201csaw one of those flimsy woven patches they sold that unraveled when you touched them, I said, \u2018Man, that\u2019s what I can do\u2019\u201d with the scrap fabric. Unlike other gun-cleaning patches, the patches that Southern Bloomer sold did not give off threads or lint, two by-products that hurt guns\u2019 accuracy and reliability. The patches quickly became popular with the military, police departments, and individual gun enthusiasts. Before long, Southern Bloomer was selling thousands of pounds of patches per month. A casual trip to a gun store unexpectedly gave rise to a lucrative emergent strategy (Wells, 2002).\r\n

    Realized Strategy<\/h1>\r\nA [pb_glossary id=\"2543\"]realized strategy[\/pb_glossary]<\/strong>\u00a0is the strategy that an organization actually follows. Realized strategies are a product of a firm\u2019s intended strategy (i.e., what the firm planned to do), the firm\u2019s [pb_glossary id=\"2544\"]deliberate strategy[\/pb_glossary]<\/strong>\u00a0(i.e., the parts of the intended strategy that the firm continues to pursue over time), and its emergent strategy (i.e., what the firm did in reaction to unexpected opportunities and challenges). In the case of FedEx, the intended strategy devised by its founder many years ago\u2014fast package delivery via a centralized hub\u2014remains a primary driver of the firm\u2019s realized strategy. For Southern Bloomers Manufacturing Company, realized strategy has been shaped greatly by both its intended and emergent strategies, which centre on underwear and gun-cleaning patches.\r\n\r\nIn other cases, firms\u2019 original intended strategies are long forgotten. A [pb_glossary id=\"2545\"]nonrealized strategy[\/pb_glossary]\u00a0<\/strong>refers to the abandoned parts of the intended strategy. When aspiring author David McConnell was struggling to sell his books, he decided to offer complimentary perfume as a sales gimmick. McConnell\u2019s books never did escape the stench of failure, but his perfumes soon took on the sweet smell of success. The California Perfume Company was formed to market the perfumes; this firm evolved into the personal care products juggernaut known today as Avon. For McConnell, his dream to be a successful writer was a nonrealized strategy, but through Avon, a successful realized strategy was driven almost entirely by opportunistically capitalizing on change through emergent strategy.\r\n

    Demographics<\/h1>\r\nOne often overlooked source of strategic information is demographics, which includes data on population, age, and sex. When\u00a0we stop and think for a minute, we realize that age has a direct and obvious link to consumption\u201465-year-old men buy few disposable diapers, and teenage women buy few new cars! Similarly, if you examine the students in your class, the majority are probably between the ages of 18 and 24, the traditional age range when people acquire their post-secondary education. While today, the percentage of older students is low, demographic analysis tells us that this number will grow, if only because there will be fewer traditional-aged students in years to come. How do we know? Because we know the number of people aged 13 to 17 currently in your local high school.\r\n\r\nDemographics analysis has a high degree of predictability.\u00a0 Someone who is 23 years old this year will predictably be 24 next year, and 25 the year after. Age data is often combined with a wide variety of economic and lifestyle information as well, dramatically increasing its strategic value to companies.\r\n\r\nCanada\u2019s baby boomers\u00a0(born between 1946 and 1965) have had an incredible impact on everything from education and housing to health as they aged. This cohort,\u00a0the earliest of which are now well into their\u00a060s, are and will be purchasing products and services appropriate for newly retired seniors at record levels. However, those baby boomers are not having babies now (too old). In fact, Canada\u2019s low birth rate of 1.61 children per woman\u00a0in 2011 (Statistics Canada, 2013) will have a profound long-term effects on society; it takes 2.1 children per woman\u00a0to sustain a nation\u2019s population over time. Economists are asking, \"What will happen when the population, especially the working-age population starts to fall?\" (Statistics Canada, 2013).\r\n\r\nThis trend is observable in most countries around the world. With the United States\u00a0reporting birth rates of 1.89 and China 1.58, immigration is unlikely to make up for these missing children. Interestingly, in Canada, Aboriginal people\u00a0are an exception with a much higher birthrate. In fact, if this trend continues, Saskatchewan would become\u00a0the first Canadian province with a majority Aboriginal population.\r\n\r\nUnderstanding various demographic aspects of current consumers (from sales data) and analyzing how this might change over the medium-to-long term can be of real strategic importance to firms.\u00a0 Demographic data is readily available, usually free from government (Statistics Canada, U.S. Census Bureau, etc.), and customized data sets can be purchased to delve deeper into details of your relevant consumer population and population trends.\r\n

    Strategy at the Movies: The Social Network<\/h1>\r\nDid Harvard University student Mark Zuckerberg set out to build a billion-dollar company with more than 600 million active users? Not hardly. As shown in 2010\u2019s The Social Network<\/em>, Zuckerberg\u2019s original concept in 2003 had a dark nature. After being dumped by his girlfriend, a bitter Zuckerberg created a website called \u201cFaceMash\u201d where the attractiveness of young women could be voted on. This evolved first into an online social network called Thefacebook that was for Harvard students only. When the network became surprisingly popular, it then morphed into Facebook, a website open to everyone. Facebook is so pervasive today that it has changed the way we speak, such as the word friend<\/em> being used as a verb. Ironically, Facebook\u2019s emphasis on connecting with existing and new friends is about as different as it could be from Zuckerberg\u2019s original mean-spirited concept. Certainly, Zuckerberg\u2019s emergent and realized strategies turned out to be far nobler than the intended strategy that began his adventure in entrepreneurship.\r\n\r\n \r\n\r\n[caption id=\"attachment_2395\" align=\"aligncenter\" width=\"400\"]\"Mark<\/a> Figure 1.7: The Social Network demonstrates how founder Mark Zuckerberg\u2019s intended strategy gave way to an emergent strategy via the creation of Facebook[\/caption]\r\n\r\n
    \r\n

    Key Takeaways<\/p>\r\n\r\n<\/header>\r\n

    \r\n\r\nMost organizations create intended strategies that they hope to follow to be successful. Over time, however, changes in an organization\u2019s situation give rise to new opportunities and challenges. Organizations respond to these changes using emergent strategies. Realized strategies are a product of both intended and realized strategies.\r\n\r\n<\/div>\r\n<\/div>\r\n
    \r\n

    Exercises<\/p>\r\n\r\n<\/header>\r\n

    \r\n
      \r\n \t
    1. What is the difference between an intended and an emergent strategy?<\/li>\r\n \t
    2. Can you think of a company that seems to have abandoned its intended strategy? Why do you suspect it was abandoned?<\/li>\r\n \t
    3. Would you describe your career strategy in college to be more deliberate or emergent? Why?<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n

      References<\/h1>\r\nDonahoe, J. A. (2011, March 10).\u00a0Forbes<\/em>: Fred Smith\u2019s fortune grows to $.21B.<\/a>\u00a0Memphis Business Journal<\/em>. Retrieved from\u00a0http:\/\/www.bizjournals.com\/memphis\/news\/2011\/03\/10\/forbes-fred-smiths-fortune-grows-to.html\r\n\r\nMintzberg, H., & Waters, J. A. (1985). Of strategies, deliberate and emergent.\u00a0Strategic Management Journal<\/em>,\u00a06<\/em>, 257\u2013272.\r\n\r\nStatistics Canada. (2013, March 19). Births and total fertility rate, by province and territory<\/em>.<\/a>\u00a0 Retrieved from http:\/\/www.statcan.gc.ca\/tables-tableaux\/sum-som\/l01\/cst01\/hlth85b-eng.htm<\/span>\r\n\r\nWells, K. (2002).\u00a0Floating off the page: The best stories from the<\/em>\u00a0Wall Street Journal\u2019s\u00a0middle column<\/em>. New York: Simon & Shuster. Quote from page 97.\r\n

      Image descriptions<\/h1>\r\n<\/a>Figure 1.6: A Model of Intended, Deliberate, and Realized Strategy<\/strong>\r\n\r\nYou start with an intended strategy. The nonrealized strategy are any parts of the intended strategy that you abandon. The deliberate strategy is what you put into action, and the realized strategy is often a combination of your deliberate strategy and any emergent strategies that develop.\r\n\r\n[Return to Figure 1.6]<\/a>","rendered":"
      \n
      \n

      Learning Objectives<\/p>\n<\/header>\n

      \n
        \n
      1. Learn what is meant by intended and emergent strategies and the differences between them.<\/li>\n
      2. Understand realized strategies and how they are influenced by intended, deliberate, and emergent strategies.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n

        A few years ago, a consultant posed a question to thousands of executives: \u201cIs your industry facing overcapacity and fierce price competition?\u201d All but one said \u201cyes.\u201d The only \u201cno\u201d came from the manager of a unique operation\u2014the Panama Canal!\u00a0And even there, they are building a second one connecting the Atlantic to Pacific oceans scheduled to open in 2015. This manager was fortunate to be in charge of a venture whose services are desperately needed by shipping companies and that offers the only simple route linking the Atlantic and Pacific Oceans. The canal\u2019s current success will be challenged with this second goes into operation. With the current increase in globalization, the additional boat transportation make both canals\u00a0appear to be guaranteed to have many customers for as long as anyone can see into the future.<\/p>\n

        When an organization\u2019s environment is stable and predictable, strategic planning can provide enough of a strategy for the organization to gain and maintain success. The executives leading the organization can simply create a plan and execute it, and they can be confident that their plan will not be undermined by changes over time. But as the consultant\u2019s experience shows, only a few executives\u2014such as the manager of the Panama Canal\u2014enjoy a stable and predictable situation. Because change affects the strategies of almost all organizations, understanding the concepts of intended, emergent, and realized strategies is important (Figure 1.5 “Strategic Planning and Learning: Intended, Emergent, and Realized Strategies”<\/a>). Also relevant are deliberate and nonrealized strategies. The relationships among these five concepts are presented in Figure 1.6 “A Model of Intended, Deliberate, and Realized Strategy”<\/a>\u00a0(Mintzberg & Waters, 1985).<\/p>\n

        \n
        \n

        <\/a>Figure 1.5: Strategic Planning and Learning: Intended, Emergent, and Realized Strategies<\/p>\n<\/header>\n

        \n

        Strategic planning, usually in the form of a business plan, is a key aspect of creating a new venture. Many well-known firms, however, owe their success more to their ability to adapt than their original plan. Most firms begin by pursuing their plans (also known as intended strategy), but unexpected opportunities that arise over time can lead firms in much different directions than could have ever been anticipated (emergent strategy). Ultimately, the intended and emergent strategies each contribute to a firm’s realized strategy. In the cases below, the original intended strategy can barely be detected within today’s strategy.<\/p>\n\n\n\n\n\n\n
        Examples of Intended, Emergent, and Realized Strategies<\/caption>\n
        <\/td>\nIntended Strategy<\/th>\nEmergent Strategy<\/th>\nRealized Strategy<\/th>\n<\/tr>\n
        \"A<\/a><\/td>\nDave McConnell aspired to be a writer. When his books weren’t selling, he decided to give out perfume as a gimmick.<\/td>\nThe perfume McConnell gave out with his books were popular, inspiring the foundation of the California Perfume Company.<\/td>\nThe company changed its name to Avon in 1939, and it’s direct marketing system remained popular for decades. Avon is now available online and in retail outlets worldwide.<\/td>\n<\/tr>\n
        \"a<\/a><\/td>\nWhen father and son team Scott and Don Rasmussen were fired from New England Whalers, they envisioned a cable television network that focused on sports events in the state of Connecticut.<\/td>\nAs the network became successful, ESPN branched out beyond the local softball games and demolition derbies that were first broadcasted.<\/td>\nESPN is now billed as the worldwide leader in sports, owning several ESPN affiliates as well as production of ESPN magazine, ESPN radio, and broadcasting for ABC.<\/td>\n<\/tr>\n
        \"as<\/a><\/td>\nIn 1977, a cash-strapped advertiser gave a radio station managed by Lowell Paxson 112 electric can openers to pay off an overdue bill. The can openers were offered over the air for $9.95 and quickly sold out.<\/td>\nAn idea emerged. Soon the radio station featured a regular show called “Suncoast Bargaineers.” In 1982, Paxson and a partner launched the Home Shopping Club on local cable television in Florida.<\/td>\nToday the Home Shopping Network has evolved into a retail powerhouse. The company sells tens of thousands of products on television channels in several countries and over the Internet.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

        Intended and Emergent Strategies<\/h1>\n

        An intended strategy<\/a><\/strong>\u00a0is the strategy that an organization hopes to execute. Intended strategies are usually described in detail within an organization\u2019s strategic plan. When a strategic plan is created for a new venture, it is called a business plan. As an undergraduate student at Yale in 1965, Frederick Smith had to complete a business plan for a proposed company as a class project. His plan described a delivery system that would gain efficiency by routing packages through a central hub and then pass them to their destinations. A few years later, Smith started Federal Express (FedEx), a company whose strategy closely followed the plan laid out in his class project. Today, Frederick Smith\u2019s personal wealth has surpassed $2 billion, and FedEx ranks eighth among the World\u2019s Most Admired Companies according to Fortune<\/em> magazine. Certainly, Smith\u2019s intended strategy has worked out far better than even he could have dreamed (Donahoe, 2011).<\/a><\/p>\n

        \"Intended,<\/a>
        Figure 1.6: A Model of Intended, Deliberate, and Realized Strategy [Image description]<\/a><\/figcaption><\/figure>\n

        Emergent strategy has also played a role at Federal Express. An emergent strategy<\/strong><\/a>\u00a0is an unplanned strategy that arises in response to unexpected opportunities and challenges. Sometimes emergent strategies result in disasters. In the mid-1980s, FedEx deviated from its intended strategy\u2019s focus on package delivery to capitalize on an emerging technology: facsimile (fax) machines. The firm developed a service called ZapMail that involved documents being sent electronically via fax machines between FedEx offices and then being delivered to customers\u2019 offices. FedEx executives hoped that ZapMail would be a success because it reduced the delivery time of a document from overnight to just a couple of hours. Unfortunately, however, the ZapMail system had many technical problems that frustrated customers. Even worse, FedEx failed to anticipate that many businesses would simply purchase their own fax machines. ZapMail was shut down before long, and FedEx lost hundreds of millions of dollars following its failed emergent strategy. In retrospect, FedEx had made a costly mistake by venturing outside of the domain that was central to its intended strategy: package delivery (Funding Universe).<\/p>\n

        Emergent strategies can also lead to tremendous success. Southern Bloomer Manufacturing Company was founded to make underwear for use in prisons and mental hospitals. Many managers of such institutions believe that the underwear made for retail markets by companies such as Calvin Klein and Hanes is simply not suitable for the people under their care. Instead, underwear issued to prisoners needs to be sturdy and durable to withstand the rigors of prison activities and laundering. To meet these needs, Southern Bloomers began selling underwear made of heavy cotton fabric.<\/p>\n

        An unexpected opportunity led Southern Bloomer to go beyond its intended strategy of serving institutional needs for durable underwear. Just a few years after opening, Southern Bloomer\u2019s performance was excellent. It was servicing the needs of about 125 facilities, but unfortunately, this was creating a vast amount of scrap fabric. An attempt to use the scrap as stuffing for pillows had failed, so the scrap was being sent to landfills. This was not only wasteful but also costly.<\/p>\n

        One day, cofounder Don Sonner visited a gun shop with his son. Sonner had no interest in guns, but he quickly spotted a potential use for his scrap fabric during this visit. The patches that the gun shop sold to clean the inside of gun barrels were of poor quality. According to Sonner, when he \u201csaw one of those flimsy woven patches they sold that unraveled when you touched them, I said, \u2018Man, that\u2019s what I can do\u2019\u201d with the scrap fabric. Unlike other gun-cleaning patches, the patches that Southern Bloomer sold did not give off threads or lint, two by-products that hurt guns\u2019 accuracy and reliability. The patches quickly became popular with the military, police departments, and individual gun enthusiasts. Before long, Southern Bloomer was selling thousands of pounds of patches per month. A casual trip to a gun store unexpectedly gave rise to a lucrative emergent strategy (Wells, 2002).<\/p>\n

        Realized Strategy<\/h1>\n

        A realized strategy<\/a><\/strong>\u00a0is the strategy that an organization actually follows. Realized strategies are a product of a firm\u2019s intended strategy (i.e., what the firm planned to do), the firm\u2019s deliberate strategy<\/a><\/strong>\u00a0(i.e., the parts of the intended strategy that the firm continues to pursue over time), and its emergent strategy (i.e., what the firm did in reaction to unexpected opportunities and challenges). In the case of FedEx, the intended strategy devised by its founder many years ago\u2014fast package delivery via a centralized hub\u2014remains a primary driver of the firm\u2019s realized strategy. For Southern Bloomers Manufacturing Company, realized strategy has been shaped greatly by both its intended and emergent strategies, which centre on underwear and gun-cleaning patches.<\/p>\n

        In other cases, firms\u2019 original intended strategies are long forgotten. A nonrealized strategy<\/a>\u00a0<\/strong>refers to the abandoned parts of the intended strategy. When aspiring author David McConnell was struggling to sell his books, he decided to offer complimentary perfume as a sales gimmick. McConnell\u2019s books never did escape the stench of failure, but his perfumes soon took on the sweet smell of success. The California Perfume Company was formed to market the perfumes; this firm evolved into the personal care products juggernaut known today as Avon. For McConnell, his dream to be a successful writer was a nonrealized strategy, but through Avon, a successful realized strategy was driven almost entirely by opportunistically capitalizing on change through emergent strategy.<\/p>\n

        Demographics<\/h1>\n

        One often overlooked source of strategic information is demographics, which includes data on population, age, and sex. When\u00a0we stop and think for a minute, we realize that age has a direct and obvious link to consumption\u201465-year-old men buy few disposable diapers, and teenage women buy few new cars! Similarly, if you examine the students in your class, the majority are probably between the ages of 18 and 24, the traditional age range when people acquire their post-secondary education. While today, the percentage of older students is low, demographic analysis tells us that this number will grow, if only because there will be fewer traditional-aged students in years to come. How do we know? Because we know the number of people aged 13 to 17 currently in your local high school.<\/p>\n

        Demographics analysis has a high degree of predictability.\u00a0 Someone who is 23 years old this year will predictably be 24 next year, and 25 the year after. Age data is often combined with a wide variety of economic and lifestyle information as well, dramatically increasing its strategic value to companies.<\/p>\n

        Canada\u2019s baby boomers\u00a0(born between 1946 and 1965) have had an incredible impact on everything from education and housing to health as they aged. This cohort,\u00a0the earliest of which are now well into their\u00a060s, are and will be purchasing products and services appropriate for newly retired seniors at record levels. However, those baby boomers are not having babies now (too old). In fact, Canada\u2019s low birth rate of 1.61 children per woman\u00a0in 2011 (Statistics Canada, 2013) will have a profound long-term effects on society; it takes 2.1 children per woman\u00a0to sustain a nation\u2019s population over time. Economists are asking, “What will happen when the population, especially the working-age population starts to fall?” (Statistics Canada, 2013).<\/p>\n

        This trend is observable in most countries around the world. With the United States\u00a0reporting birth rates of 1.89 and China 1.58, immigration is unlikely to make up for these missing children. Interestingly, in Canada, Aboriginal people\u00a0are an exception with a much higher birthrate. In fact, if this trend continues, Saskatchewan would become\u00a0the first Canadian province with a majority Aboriginal population.<\/p>\n

        Understanding various demographic aspects of current consumers (from sales data) and analyzing how this might change over the medium-to-long term can be of real strategic importance to firms.\u00a0 Demographic data is readily available, usually free from government (Statistics Canada, U.S. Census Bureau, etc.), and customized data sets can be purchased to delve deeper into details of your relevant consumer population and population trends.<\/p>\n

        Strategy at the Movies: The Social Network<\/h1>\n

        Did Harvard University student Mark Zuckerberg set out to build a billion-dollar company with more than 600 million active users? Not hardly. As shown in 2010\u2019s The Social Network<\/em>, Zuckerberg\u2019s original concept in 2003 had a dark nature. After being dumped by his girlfriend, a bitter Zuckerberg created a website called \u201cFaceMash\u201d where the attractiveness of young women could be voted on. This evolved first into an online social network called Thefacebook that was for Harvard students only. When the network became surprisingly popular, it then morphed into Facebook, a website open to everyone. Facebook is so pervasive today that it has changed the way we speak, such as the word friend<\/em> being used as a verb. Ironically, Facebook\u2019s emphasis on connecting with existing and new friends is about as different as it could be from Zuckerberg\u2019s original mean-spirited concept. Certainly, Zuckerberg\u2019s emergent and realized strategies turned out to be far nobler than the intended strategy that began his adventure in entrepreneurship.<\/p>\n

         <\/p>\n

        \"Mark<\/a>
        Figure 1.7: The Social Network demonstrates how founder Mark Zuckerberg\u2019s intended strategy gave way to an emergent strategy via the creation of Facebook<\/figcaption><\/figure>\n
        \n
        \n

        Key Takeaways<\/p>\n<\/header>\n

        \n

        Most organizations create intended strategies that they hope to follow to be successful. Over time, however, changes in an organization\u2019s situation give rise to new opportunities and challenges. Organizations respond to these changes using emergent strategies. Realized strategies are a product of both intended and realized strategies.<\/p>\n<\/div>\n<\/div>\n

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        Exercises<\/p>\n<\/header>\n

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          \n
        1. What is the difference between an intended and an emergent strategy?<\/li>\n
        2. Can you think of a company that seems to have abandoned its intended strategy? Why do you suspect it was abandoned?<\/li>\n
        3. Would you describe your career strategy in college to be more deliberate or emergent? Why?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n

          References<\/h1>\n

          Donahoe, J. A. (2011, March 10).\u00a0Forbes<\/em>: Fred Smith\u2019s fortune grows to $.21B.<\/a>\u00a0Memphis Business Journal<\/em>. Retrieved from\u00a0http:\/\/www.bizjournals.com\/memphis\/news\/2011\/03\/10\/forbes-fred-smiths-fortune-grows-to.html<\/p>\n

          Mintzberg, H., & Waters, J. A. (1985). Of strategies, deliberate and emergent.\u00a0Strategic Management Journal<\/em>,\u00a06<\/em>, 257\u2013272.<\/p>\n

          Statistics Canada. (2013, March 19). Births and total fertility rate, by province and territory<\/em>.<\/a>\u00a0 Retrieved from http:\/\/www.statcan.gc.ca\/tables-tableaux\/sum-som\/l01\/cst01\/hlth85b-eng.htm<\/span><\/p>\n

          Wells, K. (2002).\u00a0Floating off the page: The best stories from the<\/em>\u00a0Wall Street Journal\u2019s\u00a0middle column<\/em>. New York: Simon & Shuster. Quote from page 97.<\/p>\n

          Image descriptions<\/h1>\n

          <\/a>Figure 1.6: A Model of Intended, Deliberate, and Realized Strategy<\/strong><\/p>\n

          You start with an intended strategy. The nonrealized strategy are any parts of the intended strategy that you abandon. The deliberate strategy is what you put into action, and the realized strategy is often a combination of your deliberate strategy and any emergent strategies that develop.<\/p>\n

          [Return to Figure 1.6]<\/a><\/p>\n

          Media Attributions<\/h2>