Environmental School of Strategy

The video discusses Henry Mintzberg's environmental school of strategy, which emphasizes the role of external environmental factors in shaping organizational strategy. Organizations are seen as passive entities that react to these forces. Leadership identifies and adapts to these forces, leading to strategy development. The environmental school is based on contingency theory, which posits that there is no single way to operate, and organizations must adapt to survive.

What is the primary focus of the environmental school of strategy?

• Internal organizational processes

• Technological advancements

• Environmental factors

• Financial performance

How do organizations typically respond to environmental forces according to the environmental school?

• By focusing solely on internal factors

• By proactively setting trends

• By passively reacting to them

• By ignoring them

What role does leadership play in the environmental school of strategy?

• Leading aggressive marketing campaigns

• Focusing on internal innovation

• Passively developing strategy by adapting to environmental forces

• Actively creating new markets

According to contingency theory, how should organizations develop their strategies?

• By following a single, proven method

• By reacting to the environment

• By prioritizing customer feedback

• By focusing on cost-cutting measures

What is the outcome for organizations that fail to adapt to environmental forces?

• They become obsolete

• They remain unchanged

• They expand rapidly

• They become market leaders