Compare and contrast the potential advantages and disadvantages of the Essay

Compare and contrast the potential advantages and disadvantages of the formal rational approach to strategy development - Essay Example The approach is also structural with a top to down hierarchy for decision making and assumption of responsibility. While middle level managers implement decisions in the approach, full responsibility remains with the top organs of an organization’s structure. Developed strategies, from the approach, are also detailed, and cover wide scopes. One of the advantages of such a bureaucratic approach is cost effectiveness that arises from the organization because only necessary steps and necessary personnel are involved in the strategic development process. This makes it affordable and allows for utilization of saved resources in other areas of an organization’s needs. The formal approach is also associated with efficiency that could arise from focus on a few individuals in the process and continuous involvement of the individuals in the process, a factor that identifies benefits of specialization. Efficiency promises quality decisions for effective strategies towards supporti ng desired objectives. Related to the efficiency advantage is the speed with which the formal approach can yield desired strategies. with well defines structures and specific and specialized personnel, the decision making at the different stages of the approach are faster and are therefore able to respond to emergency needs. Other advantages of the bureaucratic approach are its stability and continuity. These are because the formal structure eliminates possible barriers such as internal resistance and it is easy to replace a member of decision-making team for sustainability of a strategy development process or a developed strategy. One of the disadvantages of the formal rational approach is its concentration of power in the hands of a few people, and this could be risky if the individuals lack necessary competence or have conflict of interest. The bureaucratic scope of the approach