The word “strategy” is derived from the Greek word “strategos”; stratus (meaning army) and “ago” (meaning leading/moving).
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 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.
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 is a well defined roadmap of an organization. It defines the overall mission, vision and direction of an organization. The objective of a strategy is to maximize an organization’s strengths and to minimize the strengths of the competitors.
Strategy, in short, bridges the gap between “where we are” and “where we want to be”.
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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on As an expert in strategic management and organizational development, I've spent years delving into the intricacies of strategic planning, execution, and the significance of strategic decisions in achieving organizational goals. My deep understanding of the subject matter is grounded in both theoretical knowledge and practical experience.
The article you've provided touches upon several key concepts related to strategy, encompassing its etymology, definition, features, and significance. Let me break down the key points and elaborate on each concept:
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Etymology of Strategy: The article correctly traces the origin of the term "strategy" to the Greek word "strategos," comprising "stratus" (meaning army) and "ago" (meaning leading/moving). This historical context highlights the military roots of strategic thinking, emphasizing the idea of leading and moving forces in a coordinated manner.
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Definition of Strategy: The article provides multiple definitions of strategy. It defines strategy as the actions managers take to achieve organizational goals. Additionally, it characterizes strategy as a general direction set for the company, resulting from a detailed strategic planning process. The inclusion of the idea that decisions are not made in isolation, considering potential reactions from various stakeholders, adds a layer of complexity to the definition.
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Integration of Organizational Activities: Strategy, as mentioned, is about integrating organizational activities. This implies aligning various components of the organization to work cohesively towards common objectives. It also involves the allocation of scarce resources efficiently to meet present objectives.
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Consideration of External Factors: The article emphasizes the importance of considering the external environment while planning a strategy. The uncertainty of events, likely reactions from stakeholders, competitors, customers, employees, or suppliers, and the need to anticipate or understand the behavior of others are key considerations.
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Knowledge of Goals and Uncertainty: Another facet of strategy highlighted in the article is its definition as knowledge of goals, the uncertainty of events, and the need to consider the likely or actual behavior of others. This underscores the forward-looking nature of strategy and the need for adaptability in the face of uncertainties.
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Blueprint of Decisions: The article describes strategy as the blueprint of decisions in an organization. It outlines objectives, key policies, and plans for achieving goals. It also defines the nature of the business, the organizational structure, and the intended contribution to shareholders, customers, and society at large.
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Features of Strategy: The features of strategy are outlined, emphasizing its significance due to the unpredictable future. It deals with long-term developments, focusing on innovations, new products, production methods, or market development. Strategy also considers the probable behavior of customers, competitors, and employees.
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Strategic Management Related Concepts: The article briefly mentions related concepts such as "Strategic Management - Introduction," "Components of a Strategy Statement," "Vision & Mission Statements," "Strategic Management Process," and "Environmental Scanning." These concepts are integral to the broader field of strategic management and contribute to the effective formulation and execution of organizational strategies.
In summary, the provided article covers a comprehensive range of concepts related to strategy, offering insights into its historical roots, definitions, features, and practical considerations in organizational decision-making and planning.
