ABSTRACT
This chapter elaborates on the three modes of strategy formation – strategic design, internal strategic scanning, and strategic governance – in the business enterprises and public and hybrid organisations. It focuses on assessing and applying strategic thought mostly developed in the private sector context for the use of public and hybrid organisations. The chapter comprises the role of strategy, assumptions of environment, primary types of capital, management control regimes, and challenges for the strategy modes. In contrast to private enterprises that are owned by shares and aim to increase shareholder value, public agencies and hybrids represent entities that possess unique features that deviate from the market principle. State-owned enterprises (SOEs) and social enterprises exemplify differentiated strategic options for hybrid organisations. State-owned organisations operate in the market environment, but they include public policy goals in their strategic orientation. The most relevant feature of strategic government in the hybrid context is the structure of interaction patterns.
