Strategy - Definition and Features
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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
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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.
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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.
Strategy, in short, bridges the gap between “where we are” and “where we want to be”.
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