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Strategy

Strategy is a crucial action taken by managers to achieve organizational goals, integrating activities and allocating resources effectively. It involves understanding both internal and external factors, predicting behaviors, and requires a clear framework for decision-making and accountability. A well-defined strategy enhances communication, prioritizes activities, and guides organizations in navigating uncertainties and achieving long-term objectives.

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Ashutosh Kumar
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2 views

Strategy

Strategy is a crucial action taken by managers to achieve organizational goals, integrating activities and allocating resources effectively. It involves understanding both internal and external factors, predicting behaviors, and requires a clear framework for decision-making and accountability. A well-defined strategy enhances communication, prioritizes activities, and guides organizations in navigating uncertainties and achieving long-term objectives.

Uploaded by

Ashutosh Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Strategy

Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy
can also be defined as “A general direction set for the company and its various components to
achieve a desired state in the future. Strategy results from the detailed strategic planning process”.

A strategy is all about integrating organizational activities and utilizing and allocating the scarce
resources within the organizational environment so as to meet the present objectives. While
planning a strategy it is essential to consider that decisions are not taken in a vaccum and that any
act taken by a firm is likely to be met by a reaction from those affected, competitors, customers,
employees or suppliers.

Strategy can also be defined as knowledge of the goals, the uncertainty of events and the need to
take into consideration the likely or actual behavior of others. Strategy is the blueprint of decisions
in an organization that shows its objectives and goals, reduces the key policies, and plans for
achieving these goals, and defines the business the company is to carry on, the type of economic and
human organization it wants to be, and the contribution it plans to make to its shareholders,
customers and society at large.

Nature of Strategy

Based on the above definitions, we can understand the nature of strategy. A few aspects regarding
nature of strategy are as follows:

Strategy is a major course of action through which an organization relates itself to its environment
particularly the external factors to facilitate all actions involved in meeting the objectives of the
organization.

Strategy is the blend of internal and external factors. To meet the opportunities and threats
provided by the external factors, internal factors are matched with them.

Strategy is the combination of actions aimed to meet a particular condition, to solve certain
problems or to achieve a desirable end. The actions are different for different situations.

Due to its dependence on environmental variables, strategy may involve a contradictory action. An
organization may take contradictory actions either simultaneously or with a gap of time. For
example, a firm is engaged in closing down of some of its business and at the same time expanding
some.

Strategy is future oriented. Strategic actions are required for new situations which have not arisen
before in the past.

Strategy requires some systems and norms for its efficient adoption in any organization.

Strategy provides overall framework for guiding enterprise thinking and action.

Features of Strategy
Strategy is Significant because it is not possible to foresee the future. Without a perfect foresight,
the firms must be ready to deal with the uncertain events which constitute the business
environment.

Strategy deals with long term developments rather than routine operations, i.e. it deals with
probability of innovations or new products, new methods of productions, or new markets to be
developed in future.

Strategy is created to take into account the probable behavior of customers and competitors.
Strategies dealing with employees will predict the employee behavior.

The Importance of Strategy

Having a clear and focused strategy is critically important to the success of your business, and
without a well-defined strategy, yours may stall or even fail.

If you can take the emotion out of your decision making process, you’ll have a business and a team
that is more focused, more productive, and more profitable.

A successful strategic plan does the following:

Provides Direction and Action Plans

It establishes in a clear, concise and strategically sound way the direction for the organization how
this will be achieved, including detailed action plans

Prioritizes and Aligns Activities

Strategic planning is about making choices, establishing priorities, allocating resources to strategic
initiatives and coordinating to achieve desired results.

Defines Accountabilities

It defines clear lines of accountability and timelines for achieving expected results on the agreed
strategic initiatives.

Enhances Communication and Commitment

In clarifying the vision and accountabilities, the strategic plan increases the alignment of all
organizational activities and fosters commitment at all levels.
Provides a Framework for Ongoing Decision Making

Since all decisions should support the strategy, the strategy and the strategic initiatives are the
reference point for decision-making.

You have to have a plan for day to day business, but you also need to spend time looking and
listening to the changes that are happening in your industry. It is a matter of having both a daily plan
to get things done and an overarching strategy to guide those daily plans so you make progress
towards your long-term goals.

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