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presentation of scientific papers
      seminar: strategy-as-pratice




»of strategies, deliberate and emergent«
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski



Mintzberg & Waters, 1985.
                           Page 1




                                          Presentation and Discussion
                                     of scientific papers in the field of
                                                    Strategy-as-Pratice

                                                  University of Zurich
                                        Seminar in Strategy-as-Pratice

                                              23rd of September, 2010

                                                Andreas Schwarzinger
                                                  Boris Morgounovski
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                           Page 2




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                           Page 3




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»lesson‘s learnt«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     main message of the paper
                 A. Schwarzinger
              Boris Morgounovski
                           Page 4




           main
          message                    » The purely deliberate and purely emergent
                                       strategy do both not exist in real life
         »




          research
         questions
         & purpose
                                     » The purely deliberate and purely emergent
         »




         deliberate
                                       strategy are two poles of a continuum of
        & emergent
         strategies                    observable strategies in practice
         »




           8 types
         of strategy
                                     » There can be identified a set of 8 different types
                                       of strategy between these two poles: planned,
         »




                                       entrepreneurial, ideological, umbrella, process,
                                       unconnected, consensus and imposed strategy.
          summary
         »




         discussion
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                           Page 5




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»any questions?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     research questions of the paper
                 A. Schwarzinger
              Boris Morgounovski
                           Page 6




           main
          message                    » The paper tries to answer the following
                                       questions:
         »




          research
         questions
         & purpose
                                        » How do strategies form in organizations?
         »




                                        » How do intended and realized strategy compare and
         deliberate
        & emergent
         strategies

                                          differ from each other?
         »




           8 types
         of strategy
                                        » What are deliberate and what are emergent strategies,
         »




                                          how do they interplay and how can these two concepts
          summary                         be observed in real life?
         »




         discussion
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                                     »what do they want to tell us?«
                                     purpose of the paper
                 A. Schwarzinger
              Boris Morgounovski
                           Page 7




           main
          message                    » The aims of this paper are
         »




          research                      » to explore the complexity and variety of strategy
                                          formation processes.
         questions
         & purpose
         »




         deliberate                     » to give a better understanding of how strategy
        & emergent
         strategies                       formation processes work and look in practice.
         »




           8 types
                                        » to show or proof that the purely deliberate and purely
         of strategy
                                          emergent strategy do not exist.
         »




          summary
                                        » to derive a framework (continuum) of strategies within
                                          the two extremes of the purely deliberate and purely
         »




                                          emergent strategy which can be observed in real life.
         discussion
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                           Page 8




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»two sides of the same story«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     deliberate & emergent strategies
                 A. Schwarzinger
              Boris Morgounovski
                           Page 9




           main
          message
                                     » Deliberate strategy = Realized as intended.
         »




          research
         questions
         & purpose                   » Emergent strategy = Patterns of
         »




         deliberate
                                       consistence realized despite, or in the
                                       absence, of intentions.
        & emergent
         strategies
         »




           8 types
         of strategy
         »




          summary
         »




         discussion
»two sides of the same story«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     deliberate & emergent strategies
                 A. Schwarzinger
              Boris Morgounovski
                         Page 10




           main
          message
                                     » A strategy is perfectly deliberate if
         »




          research
         questions
                                       the realized strategy (the pattern
                                       in actions) is formed exactly as
         & purpose
         »




         deliberate
        & emergent
         strategies
                                       intended.
         »




           8 types
         of strategy                 » A strategy is perfectly emergent if
                                       there is order (consistency in
         »




          summary
                                       actions over time) in absence of
         »




         discussion
                                       intentions of intention about it.
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                         Page 11




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»a continuum of strategy«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 12     8 types of strategy


           main
          message
                                     » Mintzberg & Waters (1985) derive 8 different types of
                                       strategy within the two poles of a purelerate and a purely
         »




          research                     emergent strategy:
         questions
         & purpose
         »




         deliberate
        & emergent
                                     Purely deliberate strategies                 Purely emergent strategies
         strategies
         »




           8 types
         of strategy
         »




          summary
         »




         discussion
»a continuum of strategy«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 13     8 types of strategy


           main
          message
                                     » Mintzberg & Waters (1985) derive 8 different types of
                                       strategy within the two poles of a purely deliberate and a
         »




          research                     purely emergent strategy:
         questions
         & purpose
         »




         deliberate
        & emergent
                                     Purely deliberate strategies                                               Purely emergent strategies
         strategies
         »




           8 types
         of strategy


                                                Pla          En         Ide          Um        Pro      Un      Co        Im
         »




                                                    n   ne     t re         olo         bre       ce       co      ns        po
                                                           d       pr e         g ic        lla      ss      nn      en         se
                                                                       ne            al                        ec       su        d
          summary
                                                                          ura                                    ted       s
                                                                             l
         »




         discussion
»what‘s the plan?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 14     1st type of strategy: planned strategy


           main
          message
                                     » Planned strategy:
         »




                                        » Closest to the purely deliberate strategy
          research
         questions
         & purpose
                                        » Clear intentions, articulated in a plan, elaborated in as much
                                          detail as possible (e. g. budget, schedules, a marketing plan, …)
         »




         deliberate                     » Programs which guide the behavior of employees
        & emergent
         strategies
                                        » Formal controls to ensure the pursuit of the plan
         »




           8 types                      » Only type of strategy where the distinction between strategy
         of strategy
                                          formulation and strategy implementation holds
         »




                                        » Found in an acquiescent (=controllable) or at least predictable
          summary                         environment
         »




                                        » Powerful firms can impose their plans to their environments or
                                          are able to predict their environments with enough accuracy to
         discussion
                                          pursue deliberate
»what‘s the plan?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 15      1st type of strategy: planned strategy


           main
          message
         »




          research
         questions
         & purpose
         »




         deliberate
        & emergent
         strategies
                                     Intended strategy                         Realized strategy
         »




                                                         Planned strategy
           8 types
         of strategy
         »




          summary
         »




         discussion
»what‘s the plan?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 16     1st type of strategy: planned strategy


                                     » Example of a company with
           main
          message
         »




          research
         questions
         & purpose
                                       a sort of planned strategy:
         »




         deliberate
        & emergent
         strategies
                                        » MV Agusta
         »




           8 types
         of strategy
         »




          summary
         »




         discussion
»what‘s the plan?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 17     1st type of strategy: planned strategy


                                     » Other examples:
           main
          message
         »




          research


                                        » Mining companies
         questions
         & purpose
         »




         deliberate


                                        » Airplane companies
        & emergent
         strategies
         »




           8 types
         of strategy
                                        » Companies which strongly need to
         »




          summary
                                          plan their activites because of capital
                                          intensive or highly risky businesses
         »




         discussion
»i have a vision«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 18     2nd type of strategy: entrepreneural strategy


           main
          message
                                     » Entrepreneural strategy:
         »




                                        » One individual in personal control of an organization - most of the time
          research
         questions
                                          the owner or founder
         & purpose
                                        » The leader can impose his vision on the company through personal
         »




                                          control
         deliberate
        & emergent                      » Appears mostly in young and/or small organizations which find relatively
         strategies
                                          safe niches
         »




                                        » Sometimes appear in larger organizations under conditions of crisis
           8 types
         of strategy
                                        » Intentions are less precise, not articulated and have less acceptance in the
         »




                                          organization

          summary
                                        » Provides flexibility at the expense of specifity and articulation of
                                          intentions
         »




                                        » Vision provides only a general sense of direction – there
         discussion
                                          is room for adaption
                                        » Because the leader’s vision is personal, it can be changed completely
»i have a vision«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 19      2nd type of strategy: entrepreneural strategy


           main
          message
         »




          research
         questions
         & purpose
         »




                                                                         vision
         deliberate
        & emergent
         strategies
                                     Intended strategy                             Realized strategy
         »




           8 types
         of strategy

                                                         Entrepreneural strategy
         »




          summary
         »




         discussion
»i have a vision«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 20     2nd type of strategy: entrepreneural strategy


                                     » Example of a company with
           main
          message
         »




          research
         questions
         & purpose
                                       a sort of entrepreneural strategy:
         »




         deliberate
        & emergent
         strategies
                                        » Pagani Automobili
         »




           8 types
         of strategy
         »




          summary
         »




         discussion
»the right thing to do«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 21     3rd type of strategy: ideological strategy


           main
          message                    » Ideological strategy:
         »




          research
                                        » An ideology is actively shared by many, a vision of one leader is
         questions
         & purpose
                                          passively accepted
         »




                                        » Employees identify so strongly with these visions that they
         deliberate                       pursue them as an ideology
        & emergent
         strategies
                                        » Intentions or visions are overt (e. g. in programs or through
         »




                                          indoctrination) and perhaps articulated in rough form (e. g. in
           8 types                        a credo)
         of strategy

                                        » Often root in a vision of a passed out owner of strong leader
         »




          summary
                                        » The environment is unlikely to change  the purpose of an
                                          ideology is to change the environment or insulate the
         »




                                          organization from it
         discussion                     » Visions are less adaptable and changeable because all who share
                                          the ideology have to agree to change their “collective mind” and
                                          because they are rooted in the past and traditions
»the right thing to do«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 22      3rd type of strategy: ideological strategy


           main
          message
         »




          research
         questions
         & purpose
                                                         ideology
         »




         deliberate
        & emergent
         strategies
                                     Intended strategy                               Realized strategy
         »




           8 types
         of strategy

                                                              Ideological strategy
         »




          summary
         »




         discussion
»the right thing to do«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 23     3rd type of strategy: ideological strategy


                                     » Example of companies with
           main
          message
         »




          research
         questions
         & purpose
                                       a sort of ideological strategy:
         »




         deliberate
        & emergent
         strategies
                                        » Ferrari
         »




           8 types
         of strategy
                                        » Lamborghini
         »




          summary                       » Lotus
         »




         discussion
»the right thing to do«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 24     3rd type of strategy: ideological strategy


                                     » Other examples:
           main
          message
         »




          research


                                        » Charitable institutions
         questions
         & purpose
         »




         deliberate


                                        » Distinctive colleges
        & emergent
         strategies
         »




           8 types
         of strategy
                                        » Terroristic cells
         »




          summary
         »




         discussion
»do it, but…«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 25     4th type of strategy: umbrella strategy


           main
          message                    » Umbrella strategy:
         »




          research
                                        » Top management sets boundaries and establish kind of
         questions
         & purpose
                                          umbrellas under which organizational actions are expected to fall
         »




                                        » Leaders only have partial control over other actors in the
         deliberate                       organization,
        & emergent
         strategies
                                        » Complex, uncontrollable and unpredictable environment in
         »




           8 types                      » Umbrella strategy is deliberate and emergent; intended at the
         of strategy
                                          centre in its broad outlines but not in its specific details
         »




                                        » Umbrella strategy is deliberately emergent; the central
          summary                         leadership intentionally creates the conditions under which
                                          strategies can emerge
         »




                                        » Ideal strategy for organizational learning, but requires a subtle
         discussion
                                          balance between proaction and reaction
»do it, but…«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 26      4th type of strategy: umbrella strategy


           main
          message
         »




          research
         questions
         & purpose
         »




         deliberate
        & emergent
         strategies
                                     Intended strategy                       Realized strategy
         »




           8 types
         of strategy

                                                         Umbrella strategy
         »




          summary
         »




         discussion
»do it, but…«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 27     4th type of strategy: umbrella strategy


                                     » Example of companies with
           main
          message
         »




          research
         questions
         & purpose
                                       a sort of umbrella strategy:
         »




         deliberate
        & emergent
         strategies
                                        » KTM
         »




           8 types
         of strategy
         »




          summary
         »




         discussion
»do it, but…«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 28     4th type of strategy: umbrella strategy


           main
          message                    » Other examples:
         »




          research
         questions
                                        » The NASA; putting a man on the moon
         & purpose


                                        » Architectural firm, which partners defined what
         »




         deliberate
        & emergent
                                          buildings they wished to design: unique, excellent
         strategies
                                          and highly visible – under that umbrella, anything
         »




                                          went; performing art centres, shopping malls, office
           8 types
         of strategy                      buildings, hotels, …
         »




                                        » Virtually all real world strategies have umbrella
          summary
                                          characteristics; in no organization can the central
                                          leadership totally pre-empt the discretion of others
         »




         discussion
»we set the stage, you play«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 29     5th type of strategy: process strategy


           main
          message                    » Process strategy:
         »




          research
         questions
                                        » Top management exercises influence indirectly – it
         & purpose                        controls the process of strategy making while leaving the
                                          content of strategy to other actors
         »




         deliberate
        & emergent
         strategies
                                        » The central leadership designs the system that allows
                                          others the flexibility to evolve patterns within it
         »




           8 types
         of strategy
                                        » Complex, uncontrollable and unpredictable environment
                                          in which a variety of actors in the organization who are
         »




                                          closer to the market or customers, need discretion to
          summary
                                          determine outcomes
                                        » Often found in divisionalized organizations of a
         »




                                          conglomerate nature
         discussion
»we set the stage, you play«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 30      5th type of strategy: process strategy


           main
          message
         »




          research
         questions
         & purpose
         »




         deliberate
        & emergent
         strategies
                                     Intended strategy                      Realized strategy
         »




           8 types
         of strategy
         »




                                                         Process strategy
          summary
         »




         discussion
»i‘ll do it my way«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 31     6th type of strategy: unconnected strategy


           main
          message
                                     » Unconnected strategy:
         »




                                        » One part of the organization with considerable discretion (a subunit,
          research
         questions
                                          sometimes even a single individual), because it is only loosely coupled to
         & purpose                        the rest, is able to realize its own pattern in its stream of action
         »




                                        » Relatively emergent from the perspective of the entire organization.
         deliberate
        & emergent                      » From the perspective of the unit or individual, clearly deliberate or
         strategies
                                          emergent, depending on the prior existence of intentions
         »




                                        » The unit or individual does not have to articulate his or her intentions, so
           8 types
         of strategy
                                          no one can ever be sure what was intended
         »




                                        » Often found in organizations of experts, reflecting the complexity of the
                                          environment that they face
          summary
                                        » Unconnected strategies often contradict planned or umbrella strategies
                                          and are therefore basis for strategic adaption or organizational learning
         »




         discussion
»i‘ll do it my way«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 32      6th type of strategy: unconnected strategy


           main
          message
         »




          research
         questions
         & purpose
         »




         deliberate
        & emergent
         strategies
                                     Intended strategy   organizational strategy   Realized strategy
         »




           8 types
         of strategy
         »




                                                         Unconnected strategy
          summary
         »




         discussion
»let‘s work together«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 33     7th type of strategy: consensus strategy


           main
          message                    » Consensus strategy:
         »




                                        » Many different actors naturally converge on the
          research
         questions
         & purpose

                                          same theme, or pattern, so that it becomes
         »




         deliberate
                                          pervasive in the organization
        & emergent
         strategies

                                        » No need for any central direction or control
         »




           8 types
         of strategy
                                        » No prior intention of a central leadership at all,
                                          so the consensus strategy is rather clearly
         »




          summary
                                          emergent
         »




                                        » A consensus strategy derives not from collective
         discussion                       intention, but from collective action
»let‘s work together«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 34      7th type of strategy: consensus strategy


           main
          message
         »




          research
         questions
         & purpose
         »




         deliberate
        & emergent
         strategies
                                     Intended strategy                        Realized strategy
         »




           8 types
         of strategy
         »




                                                         Consensus strategy
          summary
         »




         discussion
»pressure from outside«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 35     8th type of strategy: imposed strategy


           main
          message                    » Imposed strategy:
         »




                                        » The strategy is imposed from outside
          research
         questions
         & purpose
         »




                                        » The environment can directly force the
                                          organization into a pattern in its stream of
         deliberate
        & emergent
         strategies

                                          actions, regardless of the presence of central
         »




           8 types                        controls
         of strategy


                                        » Sometimes the environment rather than
         »




          summary
                                          people per se impose strategies on
                                          organizations, simply by severely restricting
         »




                                          the options open to them
         discussion
»pressure from outside«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 36      8th type of strategy: imposed strategy


           main
          message
         »




                                     Intended strategy                      Realized strategy
          research
         questions
         & purpose
                                                         Imposed strategy
         »




         deliberate
        & emergent
         strategies
         »




           8 types                   Intended strategy                      Realized strategy
         of strategy
         »




                                                         Imposed strategy
          summary
         »




         discussion
»pressure from outside«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger


                                     8th type of strategy: imposed strategy
              Boris Morgounovski
                         Page 37




           main                      » Example: The little Prince (by Saint-Exupéry)
          message

                                         » The little prince: “ I want to see a sunset. Order the sun to go
         »




          research
                                           down!”
         questions
         & purpose                       » The king: “If I would order a general to fly from flower to flower
                                           like a butterfly or to write a tragedy or to transform himself into
         »




                                           a bird, and if this general would not follow my order, would it be
         deliberate
        & emergent
                                           my fault or his?”
         strategies
                                         » The little prince: “It would be yours.”
         »




           8 types
                                         » The king: “Right. You have to give
         of strategy                       people orders which they actually can
                                           follow.”
         »




                                         » The little prince: “But what is with
          summary                          my sunset?”
         »




                                         » The king: “You will have your sunset.
                                           I will order the sun to go down. But
         discussion                        with all my knowledge I will order it
                                           if the circumstances are appropriate.”
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                         Page 38




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»lesson‘s learnt reloaded«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 39     propositions


           main                      » Strategies tend to be more deliberate in tightly coupled,
          message
                                       centrally controlled organizations
         »




          research                   » Strategies tend to be more emergent in decentralized, loosely
         questions
         & purpose                     coupled ones
         »




                                     » Strategy formation walks on two feet, one deliberate and one
         deliberate
        & emergent                     emergent
         strategies

                                     » Important:
         »




           8 types
         of strategy                     » Emergent strategy does not mean chaos, but unintended order
                                           instead.
         »




                                         » Emergent strategy implies learning what works.
          summary

                                         » Emergent strategy does not mean that management is out of
         »




                                           control, only that it is open, flexible and responsive as well as
                                           willing to learn
         discussion
»What it‘s all about?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010



                                     Agenda.
                 A. Schwarzinger
              Boris Morgounovski
                         Page 40




                                     » main message of the paper
                                     » research question(s) & purpose
                                     » deliberate and emergent strategies
                                     » 8 types of strategies
                                     » summary
                                     » discussion
»what else?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 41     limitations


           main
          message
                                     » Suggested propositions within the
                                       paper are based on own, limited research
         »




          research
         questions
                                       activities of the authors
         & purpose


                                     » The 8 shown strategies are purely theoretical
         »




         deliberate
        & emergent
                                       and, as shown, can not be
         strategies
                                       just put into practice
         »




           8 types
         of strategy                 » The interplay between the 8 shown strategies
                                       was not part of the research
         »




          summary
                                     » Further research, broader samples and more
                                       variety has to be done
         »




         discussion
»what else?«
presentation of scientific papers
      seminar: strategy-as-pratice
              University of Zurich
         23rd of September, 2010
                 A. Schwarzinger
              Boris Morgounovski
                         Page 42     questions and furture research


           main
          message                    » Do the propositions hold up in broader
                                       samples?
         »




          research
         questions
         & purpose


                                     » Can the shown 8 types of strategy be
         »




         deliberate
        & emergent
         strategies
                                       combined with existing strategic concepts,
                                       theories and frameworks?
         »




           8 types
         of strategy

                                     » Will e. g. cost leadership strategies turn
         »




          summary                      out to be more deliberate and
                                       differentiation strategies more emergent
         »




         discussion                    (Porter, 1980)?

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Paper Presentation: "Of Strategies, Deliberate and Emergent" by Mintzberg & Waters, 1985

  • 1. presentation of scientific papers seminar: strategy-as-pratice »of strategies, deliberate and emergent« University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Mintzberg & Waters, 1985. Page 1 Presentation and Discussion of scientific papers in the field of Strategy-as-Pratice University of Zurich Seminar in Strategy-as-Pratice 23rd of September, 2010 Andreas Schwarzinger Boris Morgounovski
  • 2. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 2 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 3. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 3 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 4. »lesson‘s learnt« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 main message of the paper A. Schwarzinger Boris Morgounovski Page 4 main message » The purely deliberate and purely emergent strategy do both not exist in real life » research questions & purpose » The purely deliberate and purely emergent » deliberate strategy are two poles of a continuum of & emergent strategies observable strategies in practice » 8 types of strategy » There can be identified a set of 8 different types of strategy between these two poles: planned, » entrepreneurial, ideological, umbrella, process, unconnected, consensus and imposed strategy. summary » discussion
  • 5. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 5 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 6. »any questions?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 research questions of the paper A. Schwarzinger Boris Morgounovski Page 6 main message » The paper tries to answer the following questions: » research questions & purpose » How do strategies form in organizations? » » How do intended and realized strategy compare and deliberate & emergent strategies differ from each other? » 8 types of strategy » What are deliberate and what are emergent strategies, » how do they interplay and how can these two concepts summary be observed in real life? » discussion
  • 7. presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 »what do they want to tell us?« purpose of the paper A. Schwarzinger Boris Morgounovski Page 7 main message » The aims of this paper are » research » to explore the complexity and variety of strategy formation processes. questions & purpose » deliberate » to give a better understanding of how strategy & emergent strategies formation processes work and look in practice. » 8 types » to show or proof that the purely deliberate and purely of strategy emergent strategy do not exist. » summary » to derive a framework (continuum) of strategies within the two extremes of the purely deliberate and purely » emergent strategy which can be observed in real life. discussion
  • 8. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 8 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 9. »two sides of the same story« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 deliberate & emergent strategies A. Schwarzinger Boris Morgounovski Page 9 main message » Deliberate strategy = Realized as intended. » research questions & purpose » Emergent strategy = Patterns of » deliberate consistence realized despite, or in the absence, of intentions. & emergent strategies » 8 types of strategy » summary » discussion
  • 10. »two sides of the same story« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 deliberate & emergent strategies A. Schwarzinger Boris Morgounovski Page 10 main message » A strategy is perfectly deliberate if » research questions the realized strategy (the pattern in actions) is formed exactly as & purpose » deliberate & emergent strategies intended. » 8 types of strategy » A strategy is perfectly emergent if there is order (consistency in » summary actions over time) in absence of » discussion intentions of intention about it.
  • 11. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 11 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 12. »a continuum of strategy« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 12 8 types of strategy main message » Mintzberg & Waters (1985) derive 8 different types of strategy within the two poles of a purelerate and a purely » research emergent strategy: questions & purpose » deliberate & emergent Purely deliberate strategies Purely emergent strategies strategies » 8 types of strategy » summary » discussion
  • 13. »a continuum of strategy« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 13 8 types of strategy main message » Mintzberg & Waters (1985) derive 8 different types of strategy within the two poles of a purely deliberate and a » research purely emergent strategy: questions & purpose » deliberate & emergent Purely deliberate strategies Purely emergent strategies strategies » 8 types of strategy Pla En Ide Um Pro Un Co Im » n ne t re olo bre ce co ns po d pr e g ic lla ss nn en se ne al ec su d summary ura ted s l » discussion
  • 14. »what‘s the plan?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 14 1st type of strategy: planned strategy main message » Planned strategy: » » Closest to the purely deliberate strategy research questions & purpose » Clear intentions, articulated in a plan, elaborated in as much detail as possible (e. g. budget, schedules, a marketing plan, …) » deliberate » Programs which guide the behavior of employees & emergent strategies » Formal controls to ensure the pursuit of the plan » 8 types » Only type of strategy where the distinction between strategy of strategy formulation and strategy implementation holds » » Found in an acquiescent (=controllable) or at least predictable summary environment » » Powerful firms can impose their plans to their environments or are able to predict their environments with enough accuracy to discussion pursue deliberate
  • 15. »what‘s the plan?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 15 1st type of strategy: planned strategy main message » research questions & purpose » deliberate & emergent strategies Intended strategy Realized strategy » Planned strategy 8 types of strategy » summary » discussion
  • 16. »what‘s the plan?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 16 1st type of strategy: planned strategy » Example of a company with main message » research questions & purpose a sort of planned strategy: » deliberate & emergent strategies » MV Agusta » 8 types of strategy » summary » discussion
  • 17. »what‘s the plan?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 17 1st type of strategy: planned strategy » Other examples: main message » research » Mining companies questions & purpose » deliberate » Airplane companies & emergent strategies » 8 types of strategy » Companies which strongly need to » summary plan their activites because of capital intensive or highly risky businesses » discussion
  • 18. »i have a vision« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 18 2nd type of strategy: entrepreneural strategy main message » Entrepreneural strategy: » » One individual in personal control of an organization - most of the time research questions the owner or founder & purpose » The leader can impose his vision on the company through personal » control deliberate & emergent » Appears mostly in young and/or small organizations which find relatively strategies safe niches » » Sometimes appear in larger organizations under conditions of crisis 8 types of strategy » Intentions are less precise, not articulated and have less acceptance in the » organization summary » Provides flexibility at the expense of specifity and articulation of intentions » » Vision provides only a general sense of direction – there discussion is room for adaption » Because the leader’s vision is personal, it can be changed completely
  • 19. »i have a vision« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 19 2nd type of strategy: entrepreneural strategy main message » research questions & purpose » vision deliberate & emergent strategies Intended strategy Realized strategy » 8 types of strategy Entrepreneural strategy » summary » discussion
  • 20. »i have a vision« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 20 2nd type of strategy: entrepreneural strategy » Example of a company with main message » research questions & purpose a sort of entrepreneural strategy: » deliberate & emergent strategies » Pagani Automobili » 8 types of strategy » summary » discussion
  • 21. »the right thing to do« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 21 3rd type of strategy: ideological strategy main message » Ideological strategy: » research » An ideology is actively shared by many, a vision of one leader is questions & purpose passively accepted » » Employees identify so strongly with these visions that they deliberate pursue them as an ideology & emergent strategies » Intentions or visions are overt (e. g. in programs or through » indoctrination) and perhaps articulated in rough form (e. g. in 8 types a credo) of strategy » Often root in a vision of a passed out owner of strong leader » summary » The environment is unlikely to change  the purpose of an ideology is to change the environment or insulate the » organization from it discussion » Visions are less adaptable and changeable because all who share the ideology have to agree to change their “collective mind” and because they are rooted in the past and traditions
  • 22. »the right thing to do« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 22 3rd type of strategy: ideological strategy main message » research questions & purpose ideology » deliberate & emergent strategies Intended strategy Realized strategy » 8 types of strategy Ideological strategy » summary » discussion
  • 23. »the right thing to do« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 23 3rd type of strategy: ideological strategy » Example of companies with main message » research questions & purpose a sort of ideological strategy: » deliberate & emergent strategies » Ferrari » 8 types of strategy » Lamborghini » summary » Lotus » discussion
  • 24. »the right thing to do« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 24 3rd type of strategy: ideological strategy » Other examples: main message » research » Charitable institutions questions & purpose » deliberate » Distinctive colleges & emergent strategies » 8 types of strategy » Terroristic cells » summary » discussion
  • 25. »do it, but…« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 25 4th type of strategy: umbrella strategy main message » Umbrella strategy: » research » Top management sets boundaries and establish kind of questions & purpose umbrellas under which organizational actions are expected to fall » » Leaders only have partial control over other actors in the deliberate organization, & emergent strategies » Complex, uncontrollable and unpredictable environment in » 8 types » Umbrella strategy is deliberate and emergent; intended at the of strategy centre in its broad outlines but not in its specific details » » Umbrella strategy is deliberately emergent; the central summary leadership intentionally creates the conditions under which strategies can emerge » » Ideal strategy for organizational learning, but requires a subtle discussion balance between proaction and reaction
  • 26. »do it, but…« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 26 4th type of strategy: umbrella strategy main message » research questions & purpose » deliberate & emergent strategies Intended strategy Realized strategy » 8 types of strategy Umbrella strategy » summary » discussion
  • 27. »do it, but…« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 27 4th type of strategy: umbrella strategy » Example of companies with main message » research questions & purpose a sort of umbrella strategy: » deliberate & emergent strategies » KTM » 8 types of strategy » summary » discussion
  • 28. »do it, but…« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 28 4th type of strategy: umbrella strategy main message » Other examples: » research questions » The NASA; putting a man on the moon & purpose » Architectural firm, which partners defined what » deliberate & emergent buildings they wished to design: unique, excellent strategies and highly visible – under that umbrella, anything » went; performing art centres, shopping malls, office 8 types of strategy buildings, hotels, … » » Virtually all real world strategies have umbrella summary characteristics; in no organization can the central leadership totally pre-empt the discretion of others » discussion
  • 29. »we set the stage, you play« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 29 5th type of strategy: process strategy main message » Process strategy: » research questions » Top management exercises influence indirectly – it & purpose controls the process of strategy making while leaving the content of strategy to other actors » deliberate & emergent strategies » The central leadership designs the system that allows others the flexibility to evolve patterns within it » 8 types of strategy » Complex, uncontrollable and unpredictable environment in which a variety of actors in the organization who are » closer to the market or customers, need discretion to summary determine outcomes » Often found in divisionalized organizations of a » conglomerate nature discussion
  • 30. »we set the stage, you play« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 30 5th type of strategy: process strategy main message » research questions & purpose » deliberate & emergent strategies Intended strategy Realized strategy » 8 types of strategy » Process strategy summary » discussion
  • 31. »i‘ll do it my way« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 31 6th type of strategy: unconnected strategy main message » Unconnected strategy: » » One part of the organization with considerable discretion (a subunit, research questions sometimes even a single individual), because it is only loosely coupled to & purpose the rest, is able to realize its own pattern in its stream of action » » Relatively emergent from the perspective of the entire organization. deliberate & emergent » From the perspective of the unit or individual, clearly deliberate or strategies emergent, depending on the prior existence of intentions » » The unit or individual does not have to articulate his or her intentions, so 8 types of strategy no one can ever be sure what was intended » » Often found in organizations of experts, reflecting the complexity of the environment that they face summary » Unconnected strategies often contradict planned or umbrella strategies and are therefore basis for strategic adaption or organizational learning » discussion
  • 32. »i‘ll do it my way« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 32 6th type of strategy: unconnected strategy main message » research questions & purpose » deliberate & emergent strategies Intended strategy organizational strategy Realized strategy » 8 types of strategy » Unconnected strategy summary » discussion
  • 33. »let‘s work together« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 33 7th type of strategy: consensus strategy main message » Consensus strategy: » » Many different actors naturally converge on the research questions & purpose same theme, or pattern, so that it becomes » deliberate pervasive in the organization & emergent strategies » No need for any central direction or control » 8 types of strategy » No prior intention of a central leadership at all, so the consensus strategy is rather clearly » summary emergent » » A consensus strategy derives not from collective discussion intention, but from collective action
  • 34. »let‘s work together« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 34 7th type of strategy: consensus strategy main message » research questions & purpose » deliberate & emergent strategies Intended strategy Realized strategy » 8 types of strategy » Consensus strategy summary » discussion
  • 35. »pressure from outside« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 35 8th type of strategy: imposed strategy main message » Imposed strategy: » » The strategy is imposed from outside research questions & purpose » » The environment can directly force the organization into a pattern in its stream of deliberate & emergent strategies actions, regardless of the presence of central » 8 types controls of strategy » Sometimes the environment rather than » summary people per se impose strategies on organizations, simply by severely restricting » the options open to them discussion
  • 36. »pressure from outside« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 36 8th type of strategy: imposed strategy main message » Intended strategy Realized strategy research questions & purpose Imposed strategy » deliberate & emergent strategies » 8 types Intended strategy Realized strategy of strategy » Imposed strategy summary » discussion
  • 37. »pressure from outside« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger 8th type of strategy: imposed strategy Boris Morgounovski Page 37 main » Example: The little Prince (by Saint-Exupéry) message » The little prince: “ I want to see a sunset. Order the sun to go » research down!” questions & purpose » The king: “If I would order a general to fly from flower to flower like a butterfly or to write a tragedy or to transform himself into » a bird, and if this general would not follow my order, would it be deliberate & emergent my fault or his?” strategies » The little prince: “It would be yours.” » 8 types » The king: “Right. You have to give of strategy people orders which they actually can follow.” » » The little prince: “But what is with summary my sunset?” » » The king: “You will have your sunset. I will order the sun to go down. But discussion with all my knowledge I will order it if the circumstances are appropriate.”
  • 38. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 38 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 39. »lesson‘s learnt reloaded« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 39 propositions main » Strategies tend to be more deliberate in tightly coupled, message centrally controlled organizations » research » Strategies tend to be more emergent in decentralized, loosely questions & purpose coupled ones » » Strategy formation walks on two feet, one deliberate and one deliberate & emergent emergent strategies » Important: » 8 types of strategy » Emergent strategy does not mean chaos, but unintended order instead. » » Emergent strategy implies learning what works. summary » Emergent strategy does not mean that management is out of » control, only that it is open, flexible and responsive as well as willing to learn discussion
  • 40. »What it‘s all about?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 Agenda. A. Schwarzinger Boris Morgounovski Page 40 » main message of the paper » research question(s) & purpose » deliberate and emergent strategies » 8 types of strategies » summary » discussion
  • 41. »what else?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 41 limitations main message » Suggested propositions within the paper are based on own, limited research » research questions activities of the authors & purpose » The 8 shown strategies are purely theoretical » deliberate & emergent and, as shown, can not be strategies just put into practice » 8 types of strategy » The interplay between the 8 shown strategies was not part of the research » summary » Further research, broader samples and more variety has to be done » discussion
  • 42. »what else?« presentation of scientific papers seminar: strategy-as-pratice University of Zurich 23rd of September, 2010 A. Schwarzinger Boris Morgounovski Page 42 questions and furture research main message » Do the propositions hold up in broader samples? » research questions & purpose » Can the shown 8 types of strategy be » deliberate & emergent strategies combined with existing strategic concepts, theories and frameworks? » 8 types of strategy » Will e. g. cost leadership strategies turn » summary out to be more deliberate and differentiation strategies more emergent » discussion (Porter, 1980)?

Hinweis der Redaktion

  1. Zum dritten bullet point: When actors are found to stray outside the boundaries (whether inadvertently or intentionally), the central leadership has three choices: to stop them ignore them (perhaps for a time, to see what will happen) or adjust to them. In other words, when an arm pokes outside the umbrella, you either pull it in, leave it there (although it might get wet), or move the umbrella over to cover it.
  2. The austrian firm KTM is in terms of sales volume on of the biggest manufacturer of motorcycles in the world. It specialiced in dirt or motocross bikes. But in the last couple of years they released very successful also streetbikes and supersport bikes and even a radical light weight car. Obviously, the umbrella strategy of KTM is to produce very sporty, very radical, very light and high quality fun machines. But under that umbrella, anything goes as we see. They even have a special umbrella for their „special edition models“. They are labeled as „R“ models and always are orange, white and black. But once again, under this umbrella, anything goes. KTM for next year even plans a X-Bow (spoken: Crossbow) „R“ version of ist car.
  3. For the NASA the goal or umbrella strategy was putting a man on the moon. Under this umbrella, everything was allowed and a lot of technologies emerged.
  4. Zu bullet point 2: The leadership may, for example, control the staffing of the organization, there by determining who gets to make strategy if not what that strategy will be (all the while knowing that control of the former constitutes considerable influence over the latter). Or it may design the structure of the organization to determine the working context of those who get to make strategy. Thus, it was claimed recently that '75 per cent of the (Hewlett Packard) plan is devoted to the new product portfolio generation process'. Zu bullet point 4: Divisionalized organizations of a conglomerate nature commonly use process strategies: the central hleadquarters creates the basic structure, establishes the control systems and appoints the division managers, who are then expected to develop strategies for their own businesses .