Question

Explain Henry Mintzberg's concept of 5-Ps in your own words with example

Answer 1

The Henry Mintzberg's concept of 5-Ps of strategy are -

The 5-Ps of strategy for organisation was developed by the Canadian management scientist Henry Mintzberg in 1987 . The 5-Ps stand for Plan , Pattern ,Position , Perspective , Ploy . With the help of these an organisation could be able to implement a effective strategy . According to Mintzberg , the formation of a strategy us difficult but with the help of 5-Ps an organisation can implement the strategy with different perspectives .

( 1 ) PLAN - A strategy is a kind of plan to deal with the situations in future . Before taking any possible actions towards any problem the plan has to be made and its important for the person or the organisation to implement it in the most conscious and effective way . To achieve a goal the plan has to be perfect .

( 2 ) PATTERN - There are some strategy that have already achieved there goals and there are some strategy that still have to work on with more details . So , for those strategy earlier patterns are used for developing the new strategy . In the flow of decision making the regular patterns are used . If certain choices have already made in past , then the organisation will make those decision again in the future .

For example A manager in an organisation who makes decision that further will enhance a highly responsive customer support process , despite not choosing to create strategic advantage his pattern of actions nevertheless creates one.

( 3 ) POSITION - The 3rd P is about the position of the organisation in the market the interaction between the internal and external context . Its very much important for an organisation to make a mindset for the organisation as where they want the organisation take its position . Knowing the the actual position of the organisation and the ideas of the stakeholders towards the organisation will help in developing a latest competitive advantage .

Example - you are developing a new product to avoid the competition in the market and to make your position in the market against the other competitors , we have to create advancement in our services so that it will be totally different from other competitors .

( 4 ) PERSPECTIVE - With choosing the position for an organisation its also important for them to have a great perspective . About what consumers think about the organisation ? , How the employee regard there employers ? , what is there view point about the investors ? These perspectives are important for the organisation regarding choosing the effective target strategy .

example - An organisation encourage there employees towards taking risk and be innovative towards there work , as the hidden strategy for the organisation is to innovate and come up with a new innovative product . By contrast, an organization that emphasizes the reliable processing of data may follow a strategy of offering these services to other organizations .

( 5 ) PLOY - It is one of the strategic choice to use a ploy . for example , one that the competitors do not expect . An organisation can surprise there environment with a new plan that nobody knows about .

Or a mobile company can put a sudden plan to mislead there competitors by introducing new data plans or with new range of televisions .

Its a ploy to mislead the competitors .