Strategy and Strategic Management
STRATEGY AND STRATEGIC MANAGEMENT
What is Strategy?
A strategy is a long-term approach to implementing a firm 's business plans to achieve its business objectives. It is also defined as the art and science of planning and marshalling resources for their most efficient and effective use.
However, Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".
In other words, strategy is about: * Where is the business trying to get to in the long-term (direction) | * Which markets should a business compete in and what kinds of activities are involved in such markets? (markets; scope) | * How can the business perform better than the competition in those markets? (advantage) | * What resources (skills, assets, finance, relationships, technical competence, facilities are required in order to be able to compete? (resources) | * What external, environmental factors affect the businesses ' ability to compete? (environment) | * What are the values and expectations of those who have power in and around the business? (stakeholders) |
“The best business strategy must steer a course between the inevitable internal pressure for business continuity and the demands of a rapidly changing world for revolutionary business strategies…”
Strategy at Different Levels of a Business
Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it.
Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic
What is Strategy?
A strategy is a long-term approach to implementing a firm 's business plans to achieve its business objectives. It is also defined as the art and science of planning and marshalling resources for their most efficient and effective use.
However, Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".
In other words, strategy is about: * Where is the business trying to get to in the long-term (direction) | * Which markets should a business compete in and what kinds of activities are involved in such markets? (markets; scope) | * How can the business perform better than the competition in those markets? (advantage) | * What resources (skills, assets, finance, relationships, technical competence, facilities are required in order to be able to compete? (resources) | * What external, environmental factors affect the businesses ' ability to compete? (environment) | * What are the values and expectations of those who have power in and around the business? (stakeholders) |
“The best business strategy must steer a course between the inevitable internal pressure for business continuity and the demands of a rapidly changing world for revolutionary business strategies…”
Strategy at Different Levels of a Business
Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it.
Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic