Strategy includes those subjects of primary concern to senior management, or to anyone seeking reasons for success and failure among organizations. Firms are in competition - competion for factor inputs, competition for customers, and ultimately, competions for revenues that cover the costs of their chosen manner of surviving.
Because of competition, firms have choices to make if they are to survive. Those that are strategic include: the selection of goals; the choice of products and services to offer; the design and configurationof policies determining how the firm positions itself to compete in product markets (eg, competitive strategy); the choice of an appropriate level of scope and diversity; and the design of organization structure, administrative systems and policies used to define and coordinate work.
It is a basic proposition of strategy, that these choices have critical influcence on the success of failure of the enterprise, and that they must be integrated.
It is the integration (or reinforcing pattern) among these choices that makes the set a strategy.
Strategy can be defined as 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 carrying out these goals - Alfred Chandler [Strategy and Structure; 1960]
Strategy is a pattern of objectives, purposes, or goals and major policies and plans for acheiving these goals, stated in such a way asto define what business the company is in or is to be in and the kind of company it is or is to be - Kenneth Andrew [Business Policy: Text and Cases, 1965]
Strategy, or defining what an organization will be, and why, and to whom that will matter, is at the heart of a leader's role. The strategist is the meaning maker, the voice of reason. The strategist rely's on hard data to ensure that design, product lineup, pricing, marketing, distribution, manufacturing, and logistics, not to mention organizational culture and management are tightly coordinated, internally consistent and interlocking. He creates a system of resources and activiies that worked together and reinforced each other to create value. For every moving part in the system there are two choices - either it contributes to system end goals or it does not and has to be rebuilt. Strategists call such choices identity-conferring committments. They are central to what an organization is or wants to be and reflect what it stands for.
References:
1. Montgomery, Cynthia A: How strategists lead, McKinsey Quarterly July 2012
Because of competition, firms have choices to make if they are to survive. Those that are strategic include: the selection of goals; the choice of products and services to offer; the design and configurationof policies determining how the firm positions itself to compete in product markets (eg, competitive strategy); the choice of an appropriate level of scope and diversity; and the design of organization structure, administrative systems and policies used to define and coordinate work.
It is a basic proposition of strategy, that these choices have critical influcence on the success of failure of the enterprise, and that they must be integrated.
It is the integration (or reinforcing pattern) among these choices that makes the set a strategy.
Strategy can be defined as 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 carrying out these goals - Alfred Chandler [Strategy and Structure; 1960]
Strategy is a pattern of objectives, purposes, or goals and major policies and plans for acheiving these goals, stated in such a way asto define what business the company is in or is to be in and the kind of company it is or is to be - Kenneth Andrew [Business Policy: Text and Cases, 1965]
Strategy, or defining what an organization will be, and why, and to whom that will matter, is at the heart of a leader's role. The strategist is the meaning maker, the voice of reason. The strategist rely's on hard data to ensure that design, product lineup, pricing, marketing, distribution, manufacturing, and logistics, not to mention organizational culture and management are tightly coordinated, internally consistent and interlocking. He creates a system of resources and activiies that worked together and reinforced each other to create value. For every moving part in the system there are two choices - either it contributes to system end goals or it does not and has to be rebuilt. Strategists call such choices identity-conferring committments. They are central to what an organization is or wants to be and reflect what it stands for.
References:
1. Montgomery, Cynthia A: How strategists lead, McKinsey Quarterly July 2012
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