A school of thoughts represents an intellectual tradition collectively espoused by a group of people by sharing a philosophy. There are ten schools of thought, according to Mintzberg, to define a strategy. Let us examine them in brief one by one.

1.Design School

It follows the swot model which seeks a fit between internal capabilities and external potentials. The strategy is developed and executed by the CEO. The design model gets inputs from multiple sources which are subject to emotions, the search process and the consideration given to variables. It could be based on subjective criterion, rather than research.

2.Planning School

It is drawn from system theory and cybernetics. The strategy is planned rigorously to take the firm ahead.

As the plans are made years in advance, if anything happens out of plan, the process gets affected.

3.Positioning School

It is based on industrial economic angle. Michael Porter’s model is particularly important. There are three generic strategies: cost leadership, differentiation and focus or niche market. The school is governed by economics.

It assumes the status quo in the market, and does not consider the new entrants.

4.Entrepreneurial School

It assumes the environment can be influenced. Entrepreneurs bring into the market new products, hitherto unknown.

It is based on a visionary leader who can take the responsibility of the success or failure of the strategies.

5.Cognitive School

It has psyhological roots. It feels that environmental scanning is difficult. They prepare mental maps to develop strategies. The strategy is here incremental and emerging. It relies on surveys and research reports.

This model is not practical beyond a point.

6.Learning School

It is also based on psychology. Human mind is complex and unpredictable. Knowledged is decentralised. So strategies are formulated based on the past. However, in the constantly changing world, strategies cannot be based coolely on the past.

7.Power School

Those in power call the shots. The power centres could be customers, unions or leaders. This is a political school. It responds to the powerful cartel. Sometimes feedback is neglected and there is no improvement.

8.Cultural School

Conducive culture fosters innovations. Strategy formulation is based on company’s unique values, perspectives and style of decision-making. It is based on social interactions. It is useful when there are mergers.

While changes touch the company, there is resistance to change. At times the direction is hazy.

9.Environmental School

It formulates strategy in response to the charging environment. The tool used is situational analysis.

Adaptability is the key.

10.Configuration School

Most preferred school, since it believes in configuring a strategy.