Role and Nature of Strategy
ROLE AND NATURE OF STRATEGY
Strategy is about winning. Strategy is not a detailed plan or program of instructions; it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization. 1. The study of strategic management helps us to explain why organizations succeed or fail, why some are more successful than others. Central to the meaning of strategy is the idea of winning. The word strategy comes from the Greek word strategos meaning army and to lead.
2. “A strategy is the integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage”. Organization must integrate all its resources, processes and people in order to create unique capabilities called core competencies which allow the company to achieve competitive advantage.
3. Less concerned with detailed plans and more about the quest for success.” (Grant, 2010, p.16). Success will be derived ultimately from competitive advantage which will result in long term superior performance over other competing organizations a. providing long term direction b. determining the scope of an organization’s activities – the range of businesses it will engage in c. aligning the firms resources and competencies to the external environment – the notion of strategic fit d. meeting the expectations of various stakeholders
4. Adapted from Johnson, Scholes and Whittington (2008): Strategy is the long term direction and scope of the organization which achieves competitive advantage in a changing environment through its configuration of resources and competencies with the aim of meeting stakeholder objectives.
5. Four elements of successful strategy
6. There is a downside, however. Focus on a single goal may lead to outstanding success, but may be matched by dismal failure in other areas of life
The Basic Framework for Strategy Analysis 7. The
Strategy is about winning. Strategy is not a detailed plan or program of instructions; it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization. 1. The study of strategic management helps us to explain why organizations succeed or fail, why some are more successful than others. Central to the meaning of strategy is the idea of winning. The word strategy comes from the Greek word strategos meaning army and to lead.
2. “A strategy is the integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage”. Organization must integrate all its resources, processes and people in order to create unique capabilities called core competencies which allow the company to achieve competitive advantage.
3. Less concerned with detailed plans and more about the quest for success.” (Grant, 2010, p.16). Success will be derived ultimately from competitive advantage which will result in long term superior performance over other competing organizations a. providing long term direction b. determining the scope of an organization’s activities – the range of businesses it will engage in c. aligning the firms resources and competencies to the external environment – the notion of strategic fit d. meeting the expectations of various stakeholders
4. Adapted from Johnson, Scholes and Whittington (2008): Strategy is the long term direction and scope of the organization which achieves competitive advantage in a changing environment through its configuration of resources and competencies with the aim of meeting stakeholder objectives.
5. Four elements of successful strategy
6. There is a downside, however. Focus on a single goal may lead to outstanding success, but may be matched by dismal failure in other areas of life
The Basic Framework for Strategy Analysis 7. The