Strategy has been researched for a long time by business leaders and by business theorists. But, there is no definitive answer regarding what strategy is actually. Strategy can often be mistaken for tactics, goals and even actions.
A strategy is the direction and scope of a business in the long run. It aids a business achieve an edge over its rivals by using an efficient configuration of resources. It additionally ensures that the market’s needs are met along with the expectations of all stakeholders.
A strategy is a framework for making decisions about how exactly you will play the game of business. Strategy is a set of key decisions made to meet objectives. A strategy of a corporation is a detailed master plan specifying how the company will achieve its mission and objectives.
The features of a strategy are:
- Development of a plan to outdo the competitors.
- Also, assist managers in responding to any changes in the business environment.
- Strategy handles long term developments rather than routine operations, i.e. it deals with probability of innovations or new products, new techniques for productions, or new markets to be developed in future.
- Enable effective mobilization of resources.
- Increase the organization’s probability to achieve the set targets.
Definition of Strategy by Different Authors
Chandler’s definition of strategy is: the determination of the basic, long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for those goals.
Strategy is a mediating force between the organization and its environment: consistent patterns in streams of organizational decisions to deal with the environment. – Mintzberg
Strategy determines the direction and scope of an organization over the long term, and they say that it should determine how resources should be configured to meet the needs of markets and stakeholders. – Gerry Johnson and Kevan Scholes
Strategy is more then just fit and allocation of resources. It is stretch and leveraging of resources – Prahlad
Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value – Porter
Additionally, the essence of strategy, according to Porter, is deciding to undertake activities differently than rivals. Strategy is the creation of a unique and valuable position, involving a different set of activities.
Strategy refers to basic directional decisions, that is, to purposes and missions. Strategy consists of the important actions necessary to realize these directions. George Steiner