Professional Documents
Culture Documents
Understanding Strategy
The concept of Strategy The term strategy is derived from a Greek word strategos, which means generalship-the actual direction of military force, as distinct from policy governing its deployment. Literally, the word strategy means the art of the general. In business parlance, strategy is often loosely used to mean A plan A pattern or common thread Pursing activities to take the organization to desired state Concerned with resources, making trade offs and creating a fit Planned & actual coordination of goals & actions
plan or course of action or a set of decision rules making a pattern or creating a common thread; the pattern or common thread related to the organisation's activities which are derived from the policies, objectives and goals; related to pursuing those activities which move an organisation from its current position to a desired future state; concerned with the resources necessary for implementing a plan or following a course of action; and connected to the strategic positioning of a firm, making tradeoffs between its different activities, and creating a fit among these activities. the planned or actual coordination of the firm's major goals and actions, in time and space that continuously co-align the firm with its environment.
CORPORATE
Corporate Office
CORPORATE-LEVEL
SBU
SBU A
SBU B
SBU C
BUSINESS-LEVEL
FUNCTIONAL
Finance
Marketing
Operations
HRM
Information
Strategic decision-making
Objectives to be achieved are determined; Alternative ways of achieving the objectives are identified; Each alternative is evaluated in terms of its objective-achieving ability; and The best alternative is chosen.
Formulation of strategies
Implementation of strategies
Strategic evaluation
Strategic control
B. Formation of strategies
Performing environmental appraisal Doing organizational appraisal Formulating corporate-level strategies 9. Formulating business-level strategies 10. Undertaking strategic analysis 11. Exercising strategic choice 12. Preparing strategic plan 13. Activating strategies 14. Designing the structure, systems & processes 15. Managing behavioral implementation 16. Managing functional implementation 17. Operationalzing strategies 18. Performing strategic evaluation 19. Exercising strategic control 20. Reformulating strategies
C. Implementation of strategies
Strategy Formulation
Environmental Organisational Appraisal Appraisal SWOT Analysis Corporate-level Strategies Business-level Strategies Strategic analysis and choice Strategic plan
Strategy Implementation
Project Procedural Resource allocation Structural Behavioural Functional & Operational
Strategic Evaluation
Strategic control
11