derived from analyses of =he PIMS data base (e.g.

, B~zzell et
~i. 1975).

116
 process" (p. 9).

A problem that has probably arisen from the literature on

declslonmaklng Is that this phase or stage is often char&c-
~erlzed as a ’problem recognition’ phase. However, in
strate~ formation, it is not clear that it is either neces-

regular planning cycles may be regarded as potentially

beneficial.

STRATEGY
CONTENT

evaluation choice; and

authorlza=ion.

However, Mintzberg et al. (1976) in presenting their model

formally recognize that while the phases and routines are
shown ln sequence, only two of the routines are necessary for
the development of any strategic decision - vlz, decision

* initiated by a decision recognition phase;

* composed of non-sequential phases;
* iterative/looping/recursive;
(Mlntzberg 1979, 1987, qulnn 1977, 1980) report that their

"A realized strategy can emerge in response ~o an

Firstly. both formal and informal roles have the potential

to influence the strategy formation process. The role of
managers is obvious and has been discussed at some length~
Another less formal and perhaps more interestlnE role is =hat
of the "product cha~plon" as found in Hurt et al.’s (1988)
tracing of strategy formation through a network analysis.
These key organizational individuals are likely to be the

118
only a few" (Szilagyl and Schwelger 1984, p. 631).
Another skill that is likely to influence the strategy
formation process is that of the information processing capa-
bilities of individuals involved in the process. It is
generally accepted that humans are not rational, economic
animals hut instead make decisions that are less than optimal
(Simon 1959, 1964 as eltedhyAnderson 1982, p. 18). To some
quali=y of these inputs is likely to significantly influence
It is noteworthy that the normative models of strateg~
formation have dealt extensively with ensuring high quality
informational input~ in the sense that most of these are
analytical models. Few, if any, have dealt with the trickier
problem of ensuring that Inslghtfulness and creativity are
appl&ed in ~he strateg~ formation process.
There is however, a need to develop more generalizable and
implementable results. ~o methodologies that can be
The utilization of longitudinal surveys might be considered
as at least one way of collecting more quantitative data~
Longitudinal rather than cross-sectional approaches are
recommended on the grounds that the former can enable
The challenge with the survey design is to devise measures
The second suggestion is to simulate the strategy formation
process through the use of competing teams working on a
computer driven husiness/~arketlng strategy slmulation games
such as MARKSTRAT~ Clearly the complexity of the strategy
formation process will be reduced, but the dynamic aspects of
the process would be retained and could be measured using
longIKudlnal measures taken over the course of the game. ~n
addition, it would be possible to manipulate elements in the
model (see Figure i) and to examine the effects on the
One extra problem confronting researchers is the question of
how to evaluate both strategie process and strategic content.
Given that companies can and do measure performance by
different yardstloks (Day and Fahey 1988), it is critical
that the criteria used for measuring corresponds to the
organization’s goals. Walker and Ruekert (1987) propose
three performance criteria ÷ effectiveness (e.g., market
share); efficiency (e.g., ROI) and adaptability (e.g., sales
 ~, and Liam Fahey (1988), "Valuing Marketing
Strategies"~ Journal of Marketln£~ 52 (July), 45-57.

__, ~nd Robin Wensley (1983), "Marketing Theory

with a Strategic Orientation", Journal of Marketi~Ig, 47
(Pall), 79-89.

Barrigan, Kathryn Rudle (1983), "Research Methodologies for

Buff, Anne S,, and Rhonda Kay Reger (1987), "A Review

MlntzberB, Henry (1975), "The Manager’s Job: Folklore and

Fact", Barvard Business Review, 53 (July’Au~st), 49-61.
(1979), ~An Emerging Strategy of ’Direct’
(December), 582-589~
(1987), "Crafting Strategy", ~larvardBuslness
v~, (July-August), 66-75.
____, Duru Raisinghani, and Andre Th8oret (1976),

~mlnistratlve Science Ouarterlv, 21 (June), 246-275.

Nesbitt, Richard E., and Timothy DeCamp Wilson (1977),

"Telling More Than We Gan Know: Verbal Reports on Mental
Processes", ~/~o!o~ical Review. 84 (3), 231-259

Pfeffer, Jeffrey, and Gerald R. Salanelk (1978),

Harper & Row.
Ackoff~ Russell L., and James R~ gmshoff (1975), "Advertising
Research at Anheuser-Busch, Inc. (1965-68)", Sloan

Anderson, Paul F~ (1982), "Marketing, Strategic Planning and

the Theory of the Firm", Journal of Marketln£. 46
(Spring), 15-26.

Bonoma, Thomas V. (1985b), The Marketin£ Edge: Makln~

Szila~i, Andrew D., and David M. Schweiger (1984), "Marching

Buzzell, R.D., T. Gale and R. Sultan (1975), "Market Share Academy of Mana~ememt RevieM, 9 (4), 626-637.
Key To Profitability", Harvard Business Review. 53 (I),
97-106.

Walker, orville C., and Robert W. Ruekert (1987), "Market-

120