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Whittington's Evolutional and Systemic schools of thoughts. Applying the two schools of thought in developing strategy to Honda motors. Evolutionary process in which the Evolutional is way in which the evolutionary perspective: sell or die. Strategy, (2010)
Marketing communications decisions are for short-term survival
In the long-term we might be dead!
Intense focus on short-run sales, not long-term brand-building
Whittington's four schools of thought
The development strategy of Honda Motors have used the Whittington evolutional and Systemic school of thought in there process and the way to understand the market better and its competition. Not only maximizing the profit but also professional pride and culture as described under in the figure
Evolutionary and Systemic schools of thought
Opportunities to make decision and competition
Unexpected swings in future
Competition does not imply efficiency: markets can be manipulated; society has other criteria s for corporations than just profit maximization
Finding possible causes of action and objective
Trial and error forced choices
Selecting course of action and developing strategy
Improving operations management
Strategic objectives depends
on the specific social system in
which the strategy is created
Strategy = day to day management for surviving and competitive nature
Other than profit maximizing is professional pride, influence, religion and culture
The two schools of thought which are being used by Honda Motors in order to develop their strategies are Evolutional and Systemic and Honda are using these tools in a proper manner likewise in
Evolutional school of thought used by Honda in
Marketing communications decisions are for short-term survival
Communication decisions are for short term in the evolution process
Intense focus on short-run sales, not long-term brand-building.
They have to consider intense focus on the market
The school of thought who is better is Systemic school of thought because of lots of reason Systemic school of thought have
Systemic School of thought used by Honda
Consumer attitudes and behavior are confined to social systems with given norms, values, roles, culture, and ethics. Honda understands all these behavior and attitude of the customer in order to develop a better strategy in future.
Limitations to what marketing communications can do in terms of market share - the consumer culture rules, Honda have to have a good knowledge about the marketing communication and know its limits
Other "rational" reasons for marketing communications than pure profit maximization, such as religion, culture and professional pride.
This school of thought is better and more suited towards Honda as it keeps an eye on the consumer demand needs and wants as well understand its customer behavior. They have good knowledge of the marketing process. Honda believes in professional pride, culture and religion understanding of the people and how people react to these norms as Honda is the leading Automobile industry as it suites towards the Systemic school of thought in order towards the strategic development.
Proper explanation of Systemic in figure below
4 Processual schools of thought is about understanding the brand and influencing the brand with some risk taking in decision making and Processual approach helps firm to maintain its goal of a simple strategy based on four loop. The loops can affect but should not change the strategic management of the firm and it is about
Consumer attitudes and behaviors can be influenced
Continuous improvement of brand, Creative ways of reaching customer
Certain degree of risk-taking in decision-making allows for innovative and
The Processual School of Thought is about making the Honda adopt the strategy and develop a brand by understanding its customers and their need and wants. At the same time understand its values. The implications of strategic management on the four loops.
The rational loop helps in making sure that strategic management would be based on rational thoughts and ideas. Processual school of thought helps in focusing on the use of rational decision making when making decisions and controlling the use of strategies. It helps and makes sure that all the implications of any decisions or strategies would be carefully analyzed under Processual School of Thought. Therefore Processual School of Thought is making the strategic management of the rational loop more though full and full of new ideas.
The overt politics loop with the help of Processual School of Thought helps to create a more open influence on strategic management. Politics are used by some to add their ideas to strategic management without being discreet about it. Overt politics focuses on the use of influence and connections to assert strategic ideas with the help of Processual School of Thought and that is best thing for the company
The Culture and cognition loop plays an important role when evaluated by the Processual School of Thought as it makes use of culture and tradition to influence strategic management decision and to make the strategies based on the culture of the place and country. Honda Motors uses culture and cognition as important factor in strategic development. The culture and cognition loop makes use of ideas to change strategic management decision so that the firm will act according to the needs and wants of the environment. In this loop Processual School of Thought would serve an important part in making decisions that will affect the firm and Processual approach helps the firm maintain its goal of a simple strategy based on the four loops.
The covert politics loop with the help of Processual approach helps to create a more secretive means to influence strategic management; this involves a member of the Honda Motors secretively influencing strategic management decisions in his favor. Covert politics loop is a more secretive way to influence decisions and strategies and this usually creates decisions that may be beneficial to the company.
Honda Motors is one of the leading automobiles industries and in couple of years they have been facing problems as the industry was weakened by the rapid increase in the fuel prices as well as to energy crisis of 2003-08, which made people to buy less of automobiles with low fuel economy. In the year 2008 there were some models released by Honda with fuel efficient models to offer to the consumers, the bigger automobiles including General Motors, Toyota, Ford, Chrysler, Nissan and Honda Motors experienced sliding sales.
Honda has used PEST and SWOT analysis to work harder to achieve the goal to make their sales go high, and have worked on the weakness in the market as well. Honda has studied there PEST analysis and the factors that are affecting their company. Honda being the leading automobile industry has to know its strengths and weakness, when dealing with their customer. They need to know their needs wants and demands.
Whittington's Evolutional and Systemic schools of thoughts are being applied by Honda Motors to the better development of their strategy and which helps them to know where they are standing in the market and with the help of the four loops Honda can know its company better way as they will be able to understand its culture, religion and this will help to make better strategic decisions for the company.