In research and managerial practice the field of strategic management is very important. The application of particular strategic management highly depends on the paradigm of school of thought. It is an institutional paradigm in other words it is a range of notion of group researchers. In the concept of strategic management different school of thought plays very important role. The classification of school of though is developed by Mintzberg.
Classification includes Design, Planning, Positioning, Entrepreneurial, Cognitive, Learning, Power, Culture, Environment, and Configuration. The first difference between these schools is the way of approach. That is prescriptive and descriptive method of approach. While comparing the school of design and planning both is of perspective or normative approach. These two schools are very unique in characterization and assumptions.
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The development of SWOT (Strength, Weakness, Opportunities, and Threats) model is basic responsibility of design school. In this model, the mapping of strengths and weakness is fragmented together with opportunities and threats in place of market. The data can be used to anticipate the market situation and to analysis the internal opportunities. The central guideline of this school of thought is accomplishing the perfect fit between the external circumstance and internal opportunities. Board of directors is the persons form the strategy and chair person plays high role among the directors. This strategy formation includes formalizing, developing, and implementing plans. In case of planning school, strategy formation is not highly influenced by chair person or directors, but done by the planners in the staff section.
cybernetics and system theory are the roots of school of planning, but for design school no specific root of discipline because the perspective of this school is developed based on practice. A good strategy formation should influence the environment either by amending the organization to it or by responding to it no matter whether the strategy is planned or unplanned approach.
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