Methodologies guiding strategy development

A number of criticisms have been levelled at the use of traditional methodologies such as SWOT, PEST, BCG, and Ansoff's framework in current business environments. In developing strategy in increasingly dynamic environments, the academic literature has encouraged the continuous application of forward looking approaches that capture both hard and soft signals. In light of these criticisms and recommendations for alternative approaches, the objective of this research is to understand what approaches, strategic tools and frameworks senior executives are engaging with as they devise competitive strategy, and how these tools are being implemented. The research captures views of senior executives in the UK responsible for the development of competitive strategy. Even though managers emphasised their awareness of the limitations of traditional methodologies, the findings revealed a continuing acceptance of SWOT and PEST as mechanisms for organising information to support strategy development, although few adopted these frameworks as the definitive mechanisms for strategy development. Although recognition of the limitations of these approaches encouraged adjustment of their use, the application of these frameworks early in the strategy development process as a mechanism for organising information was not perceived by those interviewed to contain sense-making, perceptions of the future or strategy possibilities considered.