What do we mean when we say that strategy formation is situational or contingent in nature? Why is this important to understand?
What they mean is that even though you develop a strategy it will not work in every situation and for everyone. Meaning that because you work in a hospital this plan will not work for every hospital, the plan is based on the situation of circumstances that this particular hospital has based on their unique set of parameters. “The formulation of a proper strategy for a particular firm is firm specific.” (Anthony P.55). Just because this plan that someone else might have developed may not specifically work for you in your own situation does not mean that you should not be aware of strategies and situations that others in your industry are doing.
This is important to understand because you need to know that you cannot just take a glimpse at the end result and try to reimplement a plan or strategy that someone else used just because you are both in the same industry. You should look at it more as a guide and work from there.