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WK #1 (Strat): Business Strategy Definitions PDF Print E-mail

Strategy: A strategy is a long term plan of action designed to achieve a particular goal. Strategy applies to many disparate fields, such as:

  • Military strategy
  • Corporate strategy
  • Marketing strategy
  • Supply Chain strategy
  • Football strategy
  • Tennis strategy
  • Game theoretical strategy
  • Economic strategy

Strategy usually implies long term actions and Tactics refers to short term actions.

Strategic management: is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer (CEO) and executive team. It provides overall direction to the whole enterprise. An organization’s strategy must be appropriate for its resources, circumstances, and objectives. The process involves matching the companies' strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organization’s goals, policies, and action sequences (tactics) into a cohesive whole. The strategic management process:

  • involves both conceptual and analytical thought processes.
  • involves adapting the organization to its business environment.
  • is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses.
  • affects the entire organization by providing direction.
  • involves both strategy formation and also strategy implementation .
  • is partially planned and partially unplanned.
  • is done at several levels: overall corporate strategy,  individual business strategies, and functional strategies.

Strategic Plan: The Strategic Plan defines the overall direction of the Company and clearly articulates the vision, objectives, strategies, and action plans of your organization. The Strategic Plan should be written in a straightforward manner so that management, board members and employees can understand and support the company's direction.

Functional strategies: include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply chain and information technology management strategies. The emphasis is on medium term plans and is limited to the domain of each department’s functional responsibility. Each functional department attempts to do its part in meeting overall corporate objectives, and hence to some extent their strategies are derived from (or contribute to) broader corporate strategies.

Corporate Stategy: The coordination of all the various aspects of management under one all-encompassing strategy.

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