Strategic Thinking Essay

Chapter 1

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Organizations presents look towards strategic thought as a replacement for traditional waies of strategic direction which is focused on strategic planning ( Younis, 2000 ). Strategic thought has become an of import key to success to every organisation and became the major tract that direction must go through through, so as to confront the challenges of modern twenty-four hours environment ( Jaugh & A ; Glueck, 1988 ).

Previous surveies explained that the basic term of strategic thought is focused on the present state of affairs of the organisation and what could be done in this context Person ( 1999 ). Stump ( 1984 ) pointed out that strategic believing involves the definition of the different methods to make the persons chosen marks, and place the activities which those persons need to acquire to where they desire. Rowe & A ; Mason ( 1994 ) showed that strategic thought generates a construct sing the alterations of fortunes and how they take topographic point.

The Hamilton strategic direction group ( 1999 ) explained that strategic thought shows clearly the phases necessary to get down reforming the basic pillars for the hereafter of organisations. Ohmae ( 1982 ) besides showed that the initial measure in strategic thought is to look for a clear apprehension of the feature of each component from the state of affairs faced by the organisation. After that comes the usage of full capablenesss of the human encephalon to reshape an point in a really utile.


In recent old ages strategic believing received more attending from the organisations, direction, bookmans and advisers. It has become an indispensable constituent of the strategic direction. Previous surveies showed that organisations which pattern strategic thought would be able to explicate and implement more effectual and advanced schemes heightening their public presentation and opportunities for endurance, this makes an of import grounds to increase the figure of academic diary in this country.

Globalization had brought a batch of impact on organisation. Those impacts made organisations peculiarly the Small and Medium Sized Enterprises SMEs to be cognizant of any alterations that are go oning everyday. The chief ground for making so, is to be able to vie with each other and in order to maintain surviving in the concern country. Organizations besides need to follow a good scheme to give satisfaction to its internal environment such as providers and employees of the organisation, so organisations could ne’er stand without holding strategic believing which helps to foretell the present state of affairs of the organisation and what could be done.


Although there are benefits that can be obtained from the strategic thought as suggested by most of writers from the past surveies, research that focused on strategic thought particularly those of Yemeni SMEs remain limited in a figure of ways. There is a demand of extra surveies and quantitative groundss to turn out the of import of strategic thought for the organisational success.

Besides from the old surveies we can see that most of the writers were concentrating to look into the strategic thought on the big organisation ( such as: Barnett and Berland ; 1999, Linkow ; 1999, Millet ; 1988, Thakur and Calingo ; 1992 ).

The different research workers showed different elements of strategic believing ensuing in a strategic thought variable that tend excessively focused on a figure of elements and overlooking other of import elements.

Therefore, there is a demand to present more comprehensive strategic believing variable that included the difference and of import strategic thought elements as defined by most writers in the literature. Doing so, would supply a more comprehensive strategic believing variable that really much reflecting the suggestions made by most writers. So we need extra survey that show the impact of strategic believing on Small and Medium Sized Enterprises SMEs in Yemen.

This survey seeks to turn to some of the defects by placing the assorted strategic thought elements and the extent of strategic believing emphasized by the Yemeni SMEs


This survey attempts to detect replies for the undermentioned research inquiries on strategic thought patterns of Yemeni SMEs.

  1. Make Yemeni SMEs follow strategic thought patterns?
  2. What is the degree of strategic thought patterns among Yemeni SMEs?
  3. What are the strategic thought dimensions emphasized by Yemeni SMEs?


Following the positions presented in the literature, this survey initiates an effort to look into the strategic thought patterns among Yamani SMEs. More specifically, the aims of this survey include the followers:

  1. To find whether Yemeni SMEs follow strategic thought patterns.
  2. To analyze the degree of strategic thought patterns among Yemeni SMEs.
  3. To place the strategic thought dimensions emphasized by Yemeni SMEs.

Significance OF THE STUDY

  1. This survey would lend to the literature on strategic direction by supplying some penetration into the strategic thought patterns adopted by SMEs in the democracy of Yemen.
  2. This survey would be able to bespeak to what extent the Yemeni SMEs follow the strategic thought patterns.
  3. The consequence of this survey may bespeak the relevancy of strategic thought patterns of Yemeni SMEs
  4. The consequence of this survey may besides be utile to Yemeni SMEs back uping bureaus. More specifically, the bureaus would be able to utilize the information from this survey to develop preparation plans for the Yemeni SMEs.


This survey is limited in figure of ways: First the survey merely focused on houses that are runing in Hadhramote. The 2nd limited concern the SMEs in Yemen. This survey focused on the SMEs in Yemen which employ non more than 100 employees.


Strategic thought: Its peculiar manner of thought, with really specific and clearly identifiable features of the concern or organisation Liedtka ( 1998 ).

Small and Medium Sized Enterprises SMEs: is a convenient term for sectioning concerns and other organisations that are someplace between the “ little office-home office ” size and the larger endeavor. In this survey the SME refers to houses that employ non more than 100 employees.


This is the first chapter out of the five chapter of the undertaking paper which has presented the background of the survey as an debut, describes the job statement, research inquiries, research aims and the significance of the survey.

Chapter 2 will reexamine the strategic thought research findings done by other research workers and besides the elements of the strategic thought that can impact Yemeni Small and Medium Sized Enterprises SMEs.

Chapter 3 presents the method of the survey, which is the research design and process. The chapter mentions the choice of the respondents, sample types and size, the development of the questionnaire for the research and informations aggregation process. Chapter 3 ends with a brief description of the schemes and processs that were used to analyse informations aggregation from the study.

Chapter 4 discusses the reading of the research findings. There are studies of the descriptive statistical analysis. The consequences are summarized in a figure of tabular arraies to ease reading.

Chapter 5, the concluding chapter, discusses the reading of the research findings from the survey. The findings from this survey are compared to those found in past researches.

Chapter 2



This chapter presents the literature reappraisal of the survey. The literature reappraisal consists three subdivisions. Section one discusses little and average sized endeavors SMEe. Section two presents the literature on strategic thought. Section three high spots the elements of strategic thought.


Harmonizing to Cawe ( 2006 ), a literature reappraisal provides a meaningful context of a undertaking with the existence of research that already exists. A literature reappraisal sets the footing for any treatment or analysis or contemplation of deductions or expectancies of future researches. In amount, literature reappraisal presents the justification, the ground of a research subject.

The present planetary economic system offers little and average sized endeavors SMEs more transverse boundary line chances, and they now have an progressively of import function in international markets ( Andersson, Gabrielsson and Wictor 2004 ; Bacon and Hoque 2005 ). So the ground behind the publicity to analyze on SMEs comes from the sensed failure of big endeavors in making equal productive occupations to absorb a important portion of the quickly turning labour force in many developing states ( Snodgrass and Biggs, 1996 ), where the old surveies showed that SMEs help to bring forth external economic systems through the formation of industrial bunchs and positioning themselves near big endeavors. Such constellating behavior enables them to cut down cost and get better installations every bit good as skilled human resources through the sharing of specialised providers, labour market pooling, and development through cognition spillover ( Perkins 2000 ), which would, as a consequence, helps SMEs to capture productiveness growing from the full industry. Harmonizing to the OECD ( 2000 ), SMEs make up 25 to 35 % of universe export makers, an about one- fifth of fabrication SMEs earn 10 to 40 % of their gross revenues from cross boundary line activities, in add-on, SMEs have become significantly internationalized ( Andersson et al. 2004 ; lu and Beamish 2001 ).

Like many other states around the universe Yemeni SMEs play strong function in employment coevals every bit good as guaranting state ‘s economic development. The issue of Small and Medium Size Enterprises SMEs is non a new construct in economic development and direction term. Though old research emphasized that SMEs can play an of import function in economic development in any state, a small penetration on the relationship between strategic thought and Medium Size Enterprises SMEs as that of big endeavors ( LEs ) in developing states ( Bruch and Hiemenz ( 1984 Karlsson et Al. ( 1993 ), Kunasirin ( 1984 ), and Liedholm et Al. ( 1999 ) ).


The increasing force per unit areas from the rapid alterations that are happening in the concern environment have led to a assortment of responses among industrial organisations. Globalization of markets and production, the rate of technological invention and fluctuation in consumer demand are among the factors that have increased the dynamism of the competitory environment to which organisations must react. These factors make it really hard for companies to farther differentiate themselves from their rivals on the footing of merchandises, monetary values, and engineering ( Fisher, Schoenfeldt, & A ; Shaw, 2006 ).

Small and Medium Sized Enterprises SMEs in a planetary economic system presents, they need to seek and implement new schemes that are refering in bettering and developing their assets which leads to increase an organisational public presentation, therefore many organisations are now refering and concentrate on the strategic thought which is really of import key to organisation success.

The focal point on strategic thought can be considered seasonably sing the challenges faced by most organisations today. The present environment characterized by the disappearing of industry and national boundaries and rapid promotion of communicating engineering resulted in greater turbulency and competition. This would present greater challenges for organisations peculiarly for the Small and Medium Sized Enterprises SMEs which are slightly constraint in footings of resources. In facing these new challenges, the ability to inculcate strategic thought would be an added advantage for these organisations.

Because of the grounds points of the relationship between believing with the competitory place, the bookmans looked towards utilizing the term strategic thought as alternate to the traditional waies of strategic direction which is focused on strategic planning ( Younis, 2000 ). This term has become an look of the exceptionally good state of affairs of the successful organisations and became the chief tract that disposals must go through through in order to confront the challenges of modern twenty-four hours environment ( Jaugh & A ; Glueck, 1988 ).

A reappraisal of the literature besides showed that the term strategic thought is besides being widely used in the field of direction. Though widely used, today, there is no one criterion definition of strategic thought. This is so as different writers used the term otherwise. Regardless of the differences most writers agreed that, strategic thought is an indispensable portion of the strategic direction procedure, ( Hashim, 2005 ; De Witt and Meyer, 2004 ; Harrison, 2003 ; Heracleous, 2003 ; Wilson, 2003 ; Liedtka, 1998a ; and Garrat, 1995b ).There is a deficiency of clear apprehension of merely what is meant by the term strategic thought and this, in bend, has lead to considerable confusion in the strategic direction sphere. Therefore there exists a clear demand to exactly specify strategic believing so that this direction paradigm can be objectively embraced and suitably situated within the strategic direction context ( Liedtka, 1998 ).

Person ( 1999 ) showed that the basic constructs of strategic thought are centered on the current state of affairs of the organisation and what could be done in this context. Stamp ( 1984 ) pointed out that strategic believing involves the definition of the different ways to make the persons chosen purposes, and identified the activities which those persons need to make the topographic point they desire. Liedtka ( 1998 ) approaches strategic thought as derived from managerial competencies. She defines strategic thought as a peculiar manner of believing that includes five specific elements: it incorporates a systems position, is intent-focused, involves believing in clip, is hypothesis-driven, and is intelligently timeserving. Having these competencies is what characterizes the single strategic mind. For Nadler ( 1994 ), strategic thought is a originative procedure of believing about, organizing, moving on, and larning about scheme. A collaborative procedure of explicating scheme generates shared acquisition, a frame of mention which constitutes the context for little determinations made over clip.

Rowe & A ; Mason ( 1994 ) explained that strategic thought generates a construct sing the alterations of fortunes and how they take topographic point. Bates and Dilliard ( 1993 ) suggest a method for placing persons who have the ability and sensitivity to believe strategically every bit good as certain capablenesss. Harmonizing to Suutari ( 1993 ), strategic thought is the ability to bring forth thoughts and do determinations based on an apprehension of the principles of scheme preparation and in conformity with the concern ‘s strategic aims and way. Ginsberg ( 1994 ) conceives strategic thought as the procedure of deciding critical strategic issues ( from bring forthing originative thoughts for solutions to measuring these thoughts ). The Hamilton strategic direction group ( 1999 ) pointed out that strategic believing clearly shows the phases necessary to get down reforming the basic poles for the hereafter of organisations. Ohmae ( 1982 ) besides showed that the first measure in strategic thought is the hunt for a clear construct of the exceeding feature of each component from the state of affairs faced by the organisation. After that comes the usage of the full abilities of the human encephalon to reshape the component in a really utile manner.

Despite the ambiguity and deformation which sometimes surround the term, but there are of import conceptual features can be described as follows ( Al- Obiedy, 1998 ).

  1. Strategic thought reflects the consciousness by the State of the strategic leader in the Performance of their responsibilities.
  2. Strategic thought is the consequence of the interaction between leading features expressed by accomplishments, experiences and abilities of the leaders, and the features of the external and internal environment of the organisation. As the strategic leader is affected by the complex environment variables, he may besides act upon the formation and development of those variables. The strategic behaviour of the organisation will be shaped, so by this interaction.
  3. Strategic thought reflects the ability of originative idea for organisations leaders.

This sort of thought is the chief beginning for confronting organisation jobs which became more complex in nature and far from simple logic based upon consecutive everyday process. In this paper the construct of strategic thought is concerned with the mental procedure in which the interaction of the head ‘s abilities and the environmental variables to specify the chances and the menaces that face the organisation, the strengths and failing of this organisation, and how to cover with them insure uninterrupted endurance and development of the organisation. Barnett and Berland ( 1999 ), explained that the capacity of strategic thought can help the concerns to place the ways to develop confident prognosiss, and to cut down the uncertainness of concern determinations. Strategic thought can better long scope planning, ( Harper, 1991 ), respond rapidly to environmental alterations and to better the quality determination devising, ( Suutari, 1993 ; Linkow, 1999 ; Liedtka, 1998b ; Masifern and Vila, 1998 ), allow companies to be more advanced and develop attacks for outstanding the concern ( Barnett and Berland, 1999 ; Bonn, 2001 ; Masifern and Vila, 1998 ; Markides, 1997 ; Ohmae, 1982 ), aid companies placing, clasp and attract clients, ( Hickman and Silva, 1984 ), acts as a alone competence which is hard for rivals to copy, ability to develop superior merchandises, and organisation flexible plenty to follow to alter withstand turbulency, ( Bonn 2001 ; Graetz, 2002 ; Liedtka 1998b ).Graetz ( 2002 ) declares that strategic thought is indispensable to making and prolonging competitory advantage. In add-on, it has many advantages such as:

  • Fixing for the hereafter ;
  • Sing the bigger image ;
  • Expecting menaces ;
  • Making reasonable concern determinations ;
  • Solving disputing jobs ;
  • Understanding environmental tendencies ;
  • Visualizing chances ;
  • Identifying market demands for the intended venture ;
  • Positioning the venture for success ;
  • Avoiding inordinate hazard ;
  • Building confederations ;
  • Assembling the right resources ; and
  • Pull offing for consequences.

Previous surveies mentioned that strategic thought as the sort of believing procedure that forms and clarifies the present and future strategic lineation of an organisation such as its present place, values, scheme, mission, every bit good as vision. Put it otherwise, strategic minds work backwards from the hereafter, and in the procedure would hold to take into considerations future alterations into their strategic planning. These bookmans believed that strategic thought can assist to supply non merely insight to what an organisation should be making in the present, but besides to concentrate on its hereafter. By being able to make so, these writers farther indicated that strategic thought presented the organisation with a more realistic and effectual model for developing its strategic programs ( Viljoen and Dann ( 2003 ), Keelin and Arnold ( 2002 ), de Kluyer ( 2000 ) Raimond ( 1996 ), Morrisey ( 1996 ), Garrat ( 1995a ), Hanford ( 1995 ), Wall and Wall ( 1995 ), Tweed ( 1992 ), Harper ( 1991 ), Zabriskie and Huellmantel ( 1991 ), Schmincke, 1990 ; Robert ( 1988 ) and Tregoe and Zimmerman ( 1979 ) ).

The survey by Suutari ( 1993 ) pointed out that for strategic thought to be effectual in an organisation, determination devising accomplishments are required at all degrees of direction in the organisation. Harmonizing to the writer, the pattern of strategic believing requires non lone determination doing accomplishments to bring forth thoughts, but besides to do determination based on an apprehension of the principles of scheme preparation and in conformity with the strategic aims and way of the concern. In this manner strategic thought would be able to bridge the spread between planned and emergent schemes, therefore would be advantages for organisations.

In another survey, Stumpf ( 1989 ) specifically identified six of import accomplishments and cognition for practising strategic believing successfully.

The six accomplishments and cognition include:

  1. cognition of the concern and market ;
  2. ability to pull off subunit competition ;
  3. ability to place and get the better of menace ;
  4. cognition on scheme ;
  5. entrepreneurial ability ; and
  6. cognition in suiting hardship.


Beginning: Zakaria, Hashim, Ghani, and Ahmad, ( 2007 )

  1. systems perspective- a strategic mind needs to include a comprehensive attack and able to see the linkages within organisations and besides between organisations in the procedure of making value
  2. intent-focused, implying hereafter orientation,
  3. intelligent self-interest, ready and awareness to prehend chance that may emerged,
  4. believing in time- a strategic mind understands the mutuality between the yesteryear, the present and the hereafter,
  5. Hypothesis-driven, a strategic mind uses both, originative thought to make strategic options and critical thought to measure them.

In add-on, Bonn ( 2001 ) proposed that strategic believing consists of three major elements:

  1. holistic apprehension of the organisation and the environment,
  2. creativeness and,
  3. Future vision of the organisation.

Many old surveies have indicated a figure of strategic believing elements including, foresight, insight objectiveness, aggressive, oppugning of the position quo, practical considerations, proper timing, focal point, competitory advantage and holistic position, ( Hambrick ; 2001, Hanford ; 1995, Harper ; 1991, Hickman and Silva ; 1985, Hinterhuber and Popp ; 1992, Garrat ; 1995a, Jambekar ; 1995, Markides ; 1997, Millet ; 1988, Morrison and Lee ; 1979, Ohmae ; 1982, Raimond ; 1996, Schoemaker ; 1995, Schmincke ; 1990, South ; 1981, Suutari ; 1993, Wells ; 1998, Zabriskie and Huellmantel ; 1991 ). Harmonizing to Bates and Dillard ( 1993 ) successful strategic thought is related to certain mensurable capablenesss which include intuitive ability, mental snap, abstract thought, and tolerance of hazard and ambiguity.

Review of old surveies have showed that, so far there is no individual criterion strategic thought variable, nevertheless most research seem to indicate out to the presence of a figure of common elements of strategic thought. For illustration Siti Maimon ( 1993 ) developed and tested strategic believing instrument based on the strategic thought elements as determined by Ohmae ( 1982 ). Strategic thought in her instrument consists of 20 points include the undermentioned elements:

analysis of state of affairs,

viing based on cardinal success factor,

viing based on comparative high quality,

uninterrupted betterment, and

practical facet, creativeness ( which include visualizing and focussing of resources ).

Crouch and Basch ( 1997 ) in their survey on sense devising or what strategists think of when explicating scheme revealed that, certain elements exist when strategians contemplate on scheme. Their consequence suggests that a strategian ‘s thought form emphasized analysis of events and cooperation among persons or group of persons. Strategic thought may besides concentrate on action to plan or determine, practical considerations, and besides emotion. Harmonizing to Thakur and Calingo ( 1992 ) where examined the consequence of strategic thought of 13 companies based on past strategic events and those that were planned in the close hereafter. From their survey the research workers gathered that strategic believing involves way puting procedures, pull offing competition and cooperation with other houses and, human resource map that support scheme.

Harmonizing to Graetz ( 2002 ) which made survey on a big Australian telecommunication companies, resorted to scenario edifice exercising as a manner to capture strategic thought. Based on scenario edifice proposed by Schoemaker ( 1995 ) the writer pointed out that among the strategic thought elements are placing strategic issues, major stakeholders, tendencies, uncertainnesss, and building scenarios. In add-on the research workers noted that the directors of these organisations were non restraint from inquiring inquiries and there is a inclination to “ believe in an integrative format that assisted in the orchestration of internal resources ” ( Thakur and Calingo, 1992, p. 54 ), which suggest concentrating on unconventional attack and overall position to scheme.

In their study of 15 big companies in the United States, Barnett and Berland ( 1999 ) observed that strategic thought is required for companies to accomplish higher-up ‘s attacks and introduce continuously. The research workers indicate that strategic believing include the accent on:

  1. prediction of the hereafter
  2. understanding the existent drivers of value for clients
  3. understanding deduction of complex relationships
  4. competitory advantage.

From his instance survey of a little bank in the United States, Stumpf ( 1989 ) noted that unfamiliar or ill-structured work state of affairs faced by directors may heighten a director ‘s capableness for strategic thought. The work experience includes:

  1. get downing a concern or undertaking from abrasion
  2. bend around assignment
  3. particular assignment undertaking direction
  4. line/staff interchange.

Linkow ( 1999 ) in his survey of 20 strategic minds who are senior directors of taking companies and non-profit organisations determined seven elements of strategic thought:

  1. reframing – disputing built-in footing in which determination and action are based on
  2. scanning – looking for information in which current premise are based on and that may impact future way.
  3. abstracting -capability to hold on implicit in subject from battalion of information
  4. multivariate believing – ability to keep different position points
  5. visualizing – working backward from the hereafter
  6. investing – ability to reason based on observation
  7. measuring – understand values of stakeholders

Therefore past research suggests organisations that pattern strategic believing seem to stress some common elements as pointed above. Recently the work of Wilson ( 2003 ) tended to embrace the assorted elements emphasized in strategic thought as indicated by most writers. The writer suggests that strategic thought comprises seven elements: holistic, focal point, airy, practical, speculative, flexible, and decisive.

Though there are legion strategic thought elements that can be found in the literature, the undermentioned eight elements of strategic believing seem to be the more common 1s. The undermentioned writer ‘s matrix depicts the elements of strategic thought that can be identified from the conceptual and empirical literature.

Beginning: Zakaria, Hashim, Ghani, and Ahmad, ( 2007 )

Most bookmans of the strategic direction agreed with the thought that companies that apply strategic thought are able to dispute conventional concern patterns, develop advanced schemes and reap benefit thereof are due to a figure of strategic thought elements. Specifically the elements comprise foresight, holistic, insight, creativeness, objectiveness, matter-of-fact, competitory advantage, and, focal point.

    1. Foresight

It is the first component of strategic thought. Foresight is of import in the sense that it provides the way and the intended finish for a house, ( Wilson, 2003 ). It is an overarching construct that shapes other scheme elements including mission, nonsubjective, scheme, product-market, competences and other internal constituents including organisational construction and civilization. Additionally foresight tends to incorporate these constituents into a future image of the house, ( Collin and Poras, 1995 ; Mintzberg, 1994a ; Hamel and Pralahad, 1994 ; Wilson, 2003 ). The procedure of geting foresight would besides move to startle employees towards the intended hereafter by supplying a sense of find and fate, ( Hamel and Pralahad, 1994 ; Nanus, 1996 )

There are several ways to accomplish foresight such as through extrapolation, brainstorming, econometric mold, and scenario building. However at present strategic direction bookmans place greater accent in scenario building as a realistic manner to obtain foresight. Through the building of scenarios, strategic thought allows an organisation to see other factors that might hold been left out or unexpected. This would cut down tunnel vision and provides an organisation with more advanced options, ( Collin and Poras, 1995 ; Nanus, 1992 ; Schoemaker, 1995 ).

By stressing the usage of foresight an organisation would be able to detect new competitory infinite and aline its mission, aims, scheme, and other internal constituents along the intended way, ( Chakravarthy, 1996 ; Hamel and Pralahad, 1994 ; Nanus, 1996 ). The quality of foresight will further find the innovativeness and effectivity of a house ‘s scheme. As Nanus ( 1992 ) cautioned that a scheme in merely good as the vision that guides it.

    1. Holistic

Holistic position is the 2nd component of strategic thought. A figure of strategic direction bookmans emphasized the importance of holistic position, ( such as: Bonn, 2001 ; Garrat, 1995a ; Hanford, 1995 ; Liedtka, 1998b ; Moore, 1993 ; Ohmae, 1982 ; Senge, 1990 ; Wilson, 2003 ). Having a holistic position would allow an organisation to see itself within the greater model of industries and at the same clip place its function within the concern eco-system.

Bonn ( 2001 ) pointed that organisation is a portion of a complex system which consists of market, industries, and states. In add-on to the external system, Liedtka ( 1998b ) added that the internal system is another position of concern to an organisation. Within the organisation there exist the assorted degrees ; corporate, concern, functional, and besides the single degree.

A holistic position would intend that an organisation is able to spot the assorted interrelatednesss that exist within and among the different systems. By stressing a holistic position an organisation would be more effectual in crafting scheme and managing job as organisation will be concentrating right on the peculiar issues at manus instead than handling the symptoms merely, ( Jambekar, 1995 ; Senge, 1990 ). In add-on by stressing the holistic position an organisation would non be excessively focused on day-to-day modus operandis. As such an organisation that emphasizes holistic position would be in a better place to measure the deduction of the house ‘s scheme over the whole eco-system. The ability to see the impact of scheme would let house to be more prudent in choosing the best strategic option to implement.

    1. Penetration

Insight is the 3rd component of strategic thought. Harmonizing to Barnett and Berland ( 1999 ), Wells ( 1998 ), Harper ( 1991 ), Hickman and Silva ( 1985 ), and Ohmae ( 1982 ) penetration is another strategic component considered critical in strategic thought. These writers maintain that penetration is indispensable as it allows organisation to place forces at work within the environment. Having identified these forces an organisation may measure their impact on the strategic way of the industry and the organisation.

To many of the strategic direction bookmans, penetration should be acquired in a originative mode. Linkow ( 1999 ), Hamel and Pralahad ( 1994 ), and Ohmae ( 1982 ) and other bookmans suggest for organisation to creatively obtain penetration is to reframe or dispute the bing implicit in premises that a scheme is based on. In add-on an organisation should be continually on the move to happen and get the better of menace, and be sensitive to alterations.

By holding penetration, an organisation would be more originative such as holding multiple positions on strategic issues and this would let organisation to be more advanced by viing and set abouting schemes that are different from rivals.

    1. Creativity

Creativity is the 4th elements of strategic thought. Strategic direction bookmans such as Graetz ( 2003 ), Bonn ( 2001 ), Heracleous ( 1998 ), Hickman and Silva ( 1985 ), and Ohmae ( 1982 ), concur that creativeness is besides another critical component in strategic thought. These writers suggest that creativeness is so required for organisation to explicate schemes which are more advanced and effectual, and in the procedure enhances an organisation ‘s competitory place.

As suggested by these bookmans the extract of creativeness enhances scheme formation in assorted ways. First by stressing creativeness, organisation would be able to reframe or dispute implicit in premises of their schemes and actions. Second the usage of creativeness would help an organisation to bring forth new thoughts and multiple strategic options. Firm that emphasizes creativeness in their scheme preparation would be in a better place to bring forth more advanced scheme that provides an border over its rivals.

    1. Objectivity

Objectivity is the 5th component of strategic thought. Writers including Pellegrino and Carbo ( 2001 ), Hinterhuber and Popp ( 1992 ), Ohmae ( 1982 ), and South ( 1981 ) emphasized the importance of objectiveness in strategic thought. Harmonizing to these writers in order to be advanced the strategic thought procedure should be free of bing paradigm or scheme model. This is so as bing scheme model may move to retard organisation from holding a fresh expression at strategic issues. Additionally the strategic thought procedure should besides be free from bias or emotional intervention as this excessively may impede the originative procedure from taking topographic point.

By stressing objectiveness organisation will be able to interrupt away from bing paradigm and with a fresh position to take up new challenges and trade more advanced schemes.

    1. Matter-of-fact

The 6th component of strategic thought is pragmatism. Though the five elements mentioned above are of import elements of strategic believing another component which is considered of import by writers including Wilson ( 2003 ), Hambrick ( 2001 ), Liedtka ( 1998b ), Mintzberg ( 1995 ), and Ohmae ( 1982 ) is the accent on world or feasibleness. These writers contend that the preparation of advanced scheme should be grounded on pattern. This is so as organisations strive to be originative when crafting their scheme may overlook some facets of practicableness of their schemes. The accent on practicableness may move to forestall a scheme from being carried off in the pursuant of a perfect scheme.

Harmonizing to these writers there are a figure of ways in which organisation may waive pragmatism. For case an organisation may be unwilling to capitalise on new chance as a consequence of remaining on with bing scheme. Likewise Finkelstein ( 2001 ) highlighted that organisation that decides for a niche scheme may over gauge the size of the niche and as a consequence failed to retrieve its investing. Furthermore Ohmae ( 1982 ) pointed out that a scheme to develop a ‘perfect ‘ merchandise will backlash as it may stamp down the demand for replacing, such as in the instance of the Nipponese telecasting industry in 1980s.

Writers such as Wilson ( 2003 ), Hambrick ( 2001, Ohmae ( 1982 ), and South ( 1981 ) cautiousness that in explicating scheme organisation should besides take into history factors such as the restriction and rightness of capablenesss with the scheme, clocking of market entry, and sequencing of moves. In amount it can be said that by being practical an organisation would be able to guarantee that the scheme is non merely advanced but it is besides accomplishable.

    1. Competitive Advantage

Apart from the elements discussed supra, the accent on accomplishing competitory advantage is another component of strategic thought. Numerous strategic direction writers ( such as: Hinterhuber and Popp, 1992 ; Markides, 1997 ; Morrison and Lee, 1979 Ohmae, 1982 ; South, 1981 ; Wells, 1998 ) suggest that companies that employ strategic believing strive to keep competitory border against their rivals.

While it is common pattern for organisations in general to accomplish competitory advantage, the above writers argue that in strategic believing competitory advantage is usually achieved by manner of indirect attacks. To these bookmans competitory advantage can be achieved through originative agencies such as by resegmenting market, viing indirectly by stressing different merchandise properties, and insulating mark market. Even so the same bookmans maintain that organisation besides has to continuously supervise the schemes and action of rivals.

Based on the above writers, organisation that emphasizes prosecuting competitory advantage in originative ways will be able to vie with easiness.

    1. Focus

The concluding component of strategic thought is the ability to keep focal point. Liedtka ( 1998b ), Hamel and Pralahad ( 1994 ), Hickman and Silva ( 1985 ) and, Ohmae ( 1982 ), suggest that focal point is another of import component of strategic thought. This is because an organisation needs to concentrate all of its strength towards accomplishing its vision.

By concentrating on the intended way, an organisation would be in a better place to marshal and leverage its resources within a individual intent towards accomplishing the intended vision. By being focused, organisation will be concentrating on the merchandise market identified within its vision, and organize attempt to aline its internal constituents, including resources and competences, organisational civilization and construction in the chosen way. Further, this besides includes the development of new competences and restructuring of its internal constituents in order to travel the organisation along the intended way.

By holding focal point, organisation will be mobilized along its chosen way in a more consistent and effectiveness mode towards accomplishing its vision.


The undermentioned chapter describes in item the processs and methodological analysis that were used for informations aggregation and analysis in this survey.

Chapter 3



The chapter describes the method used in the survey. Section one explains the research model for the survey. Section two and three provide the population and sample and informations aggregation employed in the survey. The study instrument used to garner informations is explained in subdivision four. Section five shows the analysis that was carried out to analyse the informations collected for the survey. Finally subdivision six shows the dependability analysis.


This survey carried out to place the lend of strategic thought in Yemeni houses. The strategic thought variable is based on eight dimensions identified based on the literature. The eight strategic thought dimensions are:

  1. Foresight
  2. Holistic
  3. Penetration
  4. Creativity
  5. Matter-of-fact
  6. Objectivity
  7. Competitive Advantage
  8. Focus

The degree of strategic thought of Yemeni houses will be indicated based on the eight dimensions. The higher the degree of certain would propose that the houses are focused on their strategic believing while low sure would propose deficiency of focal point on strategic thought.


In this survey little and moderate-sized endeavors were defined as houses which employed non more than 100 employees. The samples were selected based on the listing from Small and Medium endeavor in Ministry of Industry and Trade ( MIT ) in Yemen. The entire figure of houses registered in 2009 was 1526. A sum of 50 houses were selected for the survey.

The sample frame for this survey consisted of and limited to the employees in Yemeni SMEs. The participants of this survey were the managerial degree employees of all sections. Their primary duties consisted of managing and directing all the activities of the concern.


This survey is a study survey. For the intent of this survey, a study is conducted to happen out the degree of strategic thought patterns in Yemeni little and average sized endeavors SMEs utilizing questionnaire.

Datas were collected through questionnaires from employees in Yemeni little and average sized endeavors SMEs. The study survey is conducted through questionnaire because, questionnaire is an efficient aggregation informations mechanism ( Sekaran, 2000 ) since the research worker knows what is required and how to mensurate the variables.

A postal study was carried out to obtain informations from the sample houses. Structured questionnaires were mailed to the proprietors and directors of the 30 houses identified earlier.

All 50 houses participated in the survey.


The information in the survey is gathered through a structured questionnaire, the structured questionnaire that was used in this research comprised of 3 subdivisions and 57 points. The first subdivision of the questionnaire consisted of 14 points used to ask on general information associating to the background of respondents ( 7 points ) and their houses ‘ features ( 7 points ).

The staying 43 points in subdivision two of the questionnaire were designed to capture the eight strategic believing elements emphasized by these houses, foresight ( 7 points ), holistic ( 4 points ), insight ( 5 points ), creativeness ( 7 points ), matter-of-fact ( 5 points ), objectiveness ( 4 points ), competitory advantage ( 6 points ), and focal point ( 5 points ). The response to the points in this subdivision was obtained by bespeaking the respondents to rate each point on a two point graduated table which is “ no accent ” and “ high accent ”.

The questionnaire was adopted from the survey by Zakaria, Hashim, Ahmad, and Ghani ( 2007 ).


After roll uping information from the questionnaires, a few processs has been done such as look intoing the information for truth, key in the information into the computing machine, and transforming and coding the information, developing and documenting a database construction.

The inquiries were being coded to enable analysis utilizing Statistical Packages for the Social Science ( SPSS ).

This survey used descriptive analysis to analyse the information. The descriptive analysis used is frequence and average mark.

Harmonizing to Malhorta ( 1999 ), the aim of frequence distribution is to obtain an history of figure of responses associated with different values of one variable and to show these counts into per centum footings. By making so, the research worker can find the variables that included in the questionnaire such as the frequence of a respondent profile.


Dependability Analysis is an indicant for the stableness and consistence which the instrument measures the construct and helps to entree the goodness of steps. In Cronbach ‘s Alpha dependability analysis, the closer Cronbach ‘s Alpha to 1.0, the higher the internal consistence dependability. ( Cronbach ‘s Alpha ; Cronbach, 1946 ). Cronbach measures ;

  1. Reliability less than 0.6 considered hapless.
  2. Dependability in the scope 0.7 is considered to be acceptable.
  3. Reliability more than 0.8 are considered to be good.

Reliability trial was used to prove the rightness of questionnaire to mensurate the variables. The Cronbach ‘s Alpha testing was used as it is the most good recognized dependability trial tool applied by societal research workers. Sekaran ( 2005 ) mentioned that if dependability coefficient is near to 1.0, the rightness of questionnaire to mensurate the variables is better. However, by and large, the dependabilities which are less than.60 are considered to be hapless, and those in the.70 scope, are acceptable, and over.80 classified as good ( Sekaran, 2005 ).


This chapter discussed the research method proposed for the survey. It includes the treatment of research design, questionnaire design, measuring, informations aggregations and disposal, and informations analysis techniques. The following chapter will discourse the consequence and findings.

Chapter 4



This chapter outlines the consequences of informations analysis obtained from informations that collected from respondents. The chief intent of this survey is to look into the strategic thought patterns among Yemeni SMEs. This survey aims at accomplishing the research objectives every bit good as replies the research inquiries highlighted in chapter one.

This chapter is divided into four parts which includes ; overview of informations collected, profile of respondents, descriptive analysis, and decision.


Response Rate

From the tabular array 4.2.1 it can be seen that 27 respondents ( 54 per centum ) initiated their present houses, followed by 9 respondents ( 18 per centum ) who inherited their present houses from their household, 8 respondents ( 16 per centum ) are either hired or promoted by bing houses and 6 respondents ( 12 per centum ) purchased their present houses from non household member.

Quite a figure or 10 respondents ( 20 per centum ) wanted to be proprietor “ foreman ”, 18 respondents ( 36 per centum ) intended to do money, 2 respondents ( 4 per centum ) started the present concern due to household petition, 11 respondents ( 22 per centum ) did non like the old work, and the staying respondent 9, ( 18 per centum ) started the present house because of being discharged by old employer.

In footings of the degree of instruction, 10 respondents ( 20 per centum ) possessed unmarried man ‘s grade, followed by 23 respondents ( 46 per centum ) with school certifications, 14 respondents ( 28 per centum ) with sheepskin, 3 respondents ( 6 per centum ) with maestro grades, and 0 respondents with PHD grade.

As respects the figure of old ages of experience before get downing the present concern, 8 respondents ( 16 per centum ) with less than 5 old ages of experience, 27 respondents ( 54 per centum ) with 6-10 old ages of experience, 5 respondents ( 10 per centum ) with 11-15 old ages experience, and 10 respondents ( 20 per centum ) with 16-20 old ages experience. And no any respondent more than 20 old ages experience.

In footings of age, merely 1 respondent ( 2 per centum ) who is less 20 old ages of age, 5 respondents ( 10 per centum ) who are between 21 to 25 old ages of age, 16 respondents ( 32 per centum ) are within the 26 to 30 old ages class, 17 respondents ( 34 per centum ) are between 31to 35 old ages of age, while 9 respondents ( 18 per centum ) are between 36-40 and 2 respondents ( 4 per centum ) who between 41-45 old ages of age.

Table 4.2 besides showed that 23 respondents ( 46 per centum ) are proprietors and managers of their present houses, followed by 1 respondent ( 2 per centum ) who are directors but non proprietors of the houses, 26 respondents ( 52 per centum ) who are proprietors and directors in the same clip.

Table 4.2.2 showed the background of the houses that participated in the study. In footings of location 16 houses ( 32 per centum ) are located in Sana’a, followed by 34 houses ( 64 per centum ) located in Hadhramote.

As for the country of operations, 29 houses ( 58 per centum ) operate locally, 21 houses ( 42 per centum ) operate regionally.

The houses are involved in assorted fabrication activities, runing from agricultural production to the Household merchandises and furniture. There are rather a figure of houses which are involved in similar Agricultural production ( 6 houses or 12 per centum ), the forestay merchandises houses they produce more than 2 types of merchandises ( 4 houses or 8 per centum ). Supporting merchandises and service houses where 6 houses ( 12 per centum ),6 houses ( 12 per centum ) produced one merchandise for Rubber houses. And 3 houses ( 6 per centum ) produced three merchandises for fictile houses.

In footings of the figure of workers employed, most of the houses ( 18 houses or 36 per centum ) employ 26-50 employees, followed by 16 houses ( 32 per centum ) employ 51-75, after that 11 houses ( 22 per centum ) employ 10-25 employees and the last 1 for the 76-100 which are 5 houses with ( 10 per centum ).


Descriptive analysis which includes the mean and standard divergence for the variables of strategic thought are attained and recorded in Table 4.3.

As for the accent on holistic position the three highest points recorded are, “ Work closely with providers to fulfill client ‘s demands ” ( 1.36 ) “ Exchange industry information with rivals ” ( 1.34 ) and “ Work closely with providers when presenting new merchandise in the market ” ( 1.32 ).

The three points with the highest mean mark for the accent on obtaining penetration are “ Monitor alterations of rivals actions and schemes ” ( 1.42 ), “ Keep path on technological alterations in the industry ” ( 1.4 ) and “ Monitor alterations in clients ‘ demand ” ( 1.36 ).

The highest mean mark for the points on the accent on creativeness are “ Capacity to bring forth new thoughts ”, “ Generate and measure a figure of schemes before taking action ”, and “ Give a different response to rivals each clip they target your client ” the mean for all of them is ( 1.4 ).

As for the accent on pragmatism, the three highest mean mark recorded are “ Market new merchandise merely when the expected return is certain ” ( 1.46 ), “ Bing “ first ” in the market at the disbursal of house ‘s hard currency flow place ” ( 1.34 ), and “ Continue fabrication merchandises that contributed to tauten ‘s hard currency flow in the yesteryear ”, “ Implement undertaking merely when the expected return is certain ” the mean for both of them ( 1.32 ).

The three highest mean mark for the accent on objectiveness are recorded by points, “ Select undertaking for execution based on “ gut feeling ” ( 1.34 ), “ Implementing new undertaking with most popular support from co-workers at the disbursal of profitableness ” ( 1.32 ).

As for the accent on competitory advantage, the points with the highest mean mark are “ Exploit house ‘s comparative strength against those of rivals to accomplish competitory advantage ”, “ Expect how our rivals respond to the house ‘s action in the market ” the mean for both of them is ( 1.34 ), followed by the mean of both “ Periodic meeting with cardinal forces to discourse market strength relative to rivals ” and “ Focus on market sections where the house can function better than rivals ” which is ( 1.32 ).

From Table 4.3, the two points with the highest mark the accent on holding focal point are “ Sporadically revised the strategic way of the house ” ( 1.34 ) and “ Develop strong bonds between the employees and the house ” ( 1.32 ).


This chapter has presented the findings collected from the respondents. Based on the information gathered. The following chapter will discourse the recommendations and decision for the survey.

Chapter 5



In this chapter, the findings of the survey will be further discussed and recommendations for future research are besides suggested. Section one presents the treatment of the consequences. Section two discusses the restriction of the survey. The deduction of the survey is given in subdivision three, while subdivision four suggests hereafter research that can be undertaken. Finally subdivision five provides the decision of the survey.


The intent of this survey is to look into the strategic thought patterns among Yamani SMEs utilizing a strategic thought variable which incorporate strategic thought elements based on empirical and conceptual literature. As shown earlier, strategic thought is captured based on the accent of the take parting SMEs on the eight elements which is considered critical for houses to exert strategic thought.

The findings from the old chapter showed that the take parting SMEs do pattern in strategic thought as the mean mark on all eight strategic believing elements is greater than 1.

Basically high accent is noted for the elements ; creativeness, matter-of-fact, foresight penetration, holistic, and competitory advantage. The focal point given by the take parting Yemeni SMEs on the first four elements are similar to findings from past surveies which noted that, houses that pattern strategic thought tended to stress those dimensions, ( Bonn, 2001 ; Crouch and Basch, 1997 ; Graetz, 2002 ; Hanford, 1995 ; Hambrick, 2001 ; Millet, 1988 ; Ohmae, 1982 ; Siti Maimon, 1993 ; Barnett and Berland, 1999 ; Bonn, 2001 ; Collin and Poras, 1995 ; Crouch and Basch, 1997 ; Elkin, 1993 ; Garrat, 1995a ; Graetz, 2002 ; Garrat, 1995a ; Hamel and Prahalad, 1994 ; Harper, 1991 ).

Equally good as, the findings from this survey besides showed that the participating SMEs are high in creativeness, in line with the suggestion from writers that companies exercise strategic thought besides emphasize the creativeness facets, ( Bonn, 2001 ; Crouch and Basch, 1997 ; Graetz, 2002 ; Hanford, 1995 ; Heracleous, 1998 ; Hickman and Silva, 1985 ; Liedtka, 1998b ; Linkow, 1999 ; Ohmae, 1982 ; Siti Maimon, 1993 ; Stumpf, 1989 ; Thakur and Calingo, 1992 ; Wilson 2003 ).

Though the Yemeni SMEs seemed to be giving less accent on the other two strategic believing elements, viz. objectiveness and focal point, compared to the five elements mentioned earlier, the mark of these two elements are no uncertainty significant as it is more than 1. This consequence suggests that the two elements are considered of import by the SMEs in line with findings from other surveies, ( Barnett and Berland, 1999 ; Siti Maimon, 1993 ; Thakur and Calingo, 1992 ; Crouch and Basch, 1997 ).

Restriction OF THE STUDY

This research is limited several ways. The assorted restrictions are stated as follows:

    1. Time restrictions

Time is one of the restrictions while finishing the undertaking paper. The research worker does non hold sufficient clip in carry oning the research. As a consequence, this can impact the results of this research indirectly

    1. Fiscal Constraints

Fiscal job is one of the restrictions while finishing the undertaking paper. With a high budget research, research worker is left with little sum of budget to pass on. All the disbursals must be considered to guarantee smooth completions of this undertaking paper.

    1. Respondents Co-operation

The research worker would anticipate that non all of respondents would hold given good co-operation in replying the questionnaires and some will non take it earnestly every bit good.

Deduction OF THE STUDY

As mentioned earlier this research is an exploratory survey to analyze the strategic thought patterns emphasized by the Yemeni SMEs. In position that a survey on strategic thought is rarely undertaken peculiarly in the Yemeni context, there are figure of deductions of this survey worth noted.

First, this survey would able to lend to the current apprehension of strategic thought as practiced by the companies in Yemen. These happening would farther add to the current literature on strategic direction and SMEs in Yemen.

Second, this survey provides some penetration into the strategic thought patterns as emphasized by the Yemeni SMEs. This survey seems to uncover the extent of strategic believing emphasized by the Yemeni SMEs.

Third, at the general degree this survey seems to bespeak the countries of strategic thought that would necessitate farther from practicians, academicians, and policy shapers in Yemen.

Finally, this survey may be utile to the SMEs back uping Yemeni Ministries which are responsible for the development of SMEs in Yemen.


This survey has provided merely a little part of thoughts sing the strategic thought patterns among Yamani SMEs. Hence, it would be good for future research to see the undermentioned suggestions:

  • Expanding the survey into other industries and in other states to heighten the consistence of consequences.
  • Include other elements for strategic thought so that this will increase the truth of apprehension of the strategic thought that could impact the SMEs


The survey showed the strategic thought patterns among Yamani SMEs utilizing a strategic thought variables which are creativeness, matter-of-fact, foresight, insight, holistic, competitory advantage, focal point, and objectiveness. In the survey, the Yemeni companies seem to concentrate on the first four elements.

However Yemeni companies besides should concentrate on the staying elements every bit good.

Therefore, SMEs in Yemen should be more focal point on other elements of the strategic thought which are holistic, competitory advantage, objectiveness and focal point.

This survey besides showed that, strategic thought is by and large practiced by the active houses though there may be fluctuation in accent.


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