Strategy

Strategy is a high-level plan to achieve one or more goals under conditions of uncertainty. It is important to understand that strategy is not only about "out-thinking" competitors but also about creating unique value for the customer and creating effective operational models.

Definition

The term strategy comes from the Greek word "strategos" which means "generalship." It was originally used in the context of war and politics but has since been applied to business, investment, technology, and many other fields. Strategy is about shaping the future and is the human attempt to get to "desirable ends with available means."

Types of Strategy

There are several types of strategy, including:

• Business Strategy - This involves setting goals for a business and determining the actions needed to reach those goals.
• Marketing Strategy - This involves identifying a target market and developing a marketing mix that will appeal to those potential customers.
• Military Strategy - This involves planning and conducting campaigns, as well as movement and disposition of forces.
• Political Strategy - This involves the use of strategy in the political field. It can also refer to the strategies used by governments to achieve their goals.

Strategy Formulation

Strategy formulation involves doing a situation analysis: both internal and external; both micro-environmental and macro-environmental. Concurrent with this assessment, objectives are set. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.

Strategy Implementation

Strategy implementation is the action stage of strategic management. It involves the design and management of systems to achieve the best integration of people, structure, processes and resources in achieving organizational objectives.

See Also

• Strategic Planning
• Strategic Management
• Strategic Thinking