What is Strategy

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What exactly is Strategy? History of Strategic Thinking Strategic Planning Strategic Thinking Vs Planning a Strategy Steps in Strategic Planning for Organisation

What exactly is Strategy

One popular dictionary defines Strategy as :-

o o o o o o According to Johnson and Scholes, Strategy is defined as

A plan of action or policy designed to achieve a major or overall aim.

"Strategy is the direction and scope of an organisation over the longterm: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".

What is Strategy About

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Mintzberg concludes that there are five types of strategies:

Strategy as plan - a direction, guide, course of action - intention rather than actual Strategy as ploy - a maneuver intended to outwit a competitor Strategy as pattern - a consistent pattern of past behaviour - realized rather than intended Strategy as position - locating of brands, products, or companies within the conceptual framework of consumers or other stakeholders - strategy determined primarily by factors outside the firm Strategy as perspective - strategy determined primarily by a master strategist

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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 kind of activities are involved in such markets? (markets; scope) How can the business perform better than the competition in those markets? (Competitive 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)

Strategic Planning
o o o Strategic planning for Organizations: The process by which leaders of an organization determine what it intends to be in the future and how it will get there. To put it another way, they develop a vision for the organization's future and determine the necessary priorities, procedures, and operations (strategies) to achieve that vision. Included are measurable goals which are realistic and attainable, but also challenging; emphasis is on long-term goals and strategies, rather than short term (such as annual) objectives. Strategic planning assumes that certain aspects of the future can be created or influenced by the organization. Strategic planning is ongoing; it is "the process of self-examination, the confrontation of difficult choices, and the establishment of priorities". Strategic planning involves "charting a course that you believe is wise, then adjusting that course as you gain more information and experience" Strategic Planning is the process of first identifying where you are and then where you want to be and finally deciding a plan on what you must do to get. Unless you have a clear picture of where you want to go or what you want to become , your path will be filled with second thoughts and would ultimately foray off into direction that you didn't wanted to pursue.