2. 1. INTRODUCTION
• STRATEGY Strategy is a high-level plan to
achieve one or more goals under conditions of
uncertainty. Strategy is an action that
managers take to attain one or more of the
organization’s goals.
3. • 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”.
4. • Chandler defines Strategy is the determination
of the basic long-term goals of an enterprise,
and the adoption of courses of action and the
allocation of resources necessary for carrying
out these goals.
5. • Mintzberg defines Strategy is a mediating force
between the organization and its environment:
consistent patterns in streams of organizational
decisions to deal with the environment.
• Prahlad defines Strategy is more then just fit and
allocation of resources. It is stretch and
leveraging of resources
6. • Jauch and Glueck defines “Strategy is a unified,
comprehensive and integrated plan that relates
the strategic advantages of the firm to the
challenges of the environment.
• It is designed to ensure that the basic objectives
of the enterprise are achieved through proper
execution by the organisation.”
7. NATURE OF STRATEGY
• Based on the above definitions, we can
understand the nature of strategy. A few aspects
regarding nature of strategy are as follows:
• Strategy is a major course of action through which
an organization relates itself to its environment
particularly the external factors to facilitate all
actions involved in meeting the objectives of the
organization.
8. • Strategy is the blend of internal and external factors. To
meet the opportunities and threats provided by the
external factors, internal factors are matched with
them. Strategy is the combination of actions aimed to
meet a particular condition, to solve certain problems
or to achieve a desirable end
9. • The actions are different for different situations.
• Due to its dependence on environmental
variables, strategy may involve a contradictory
action.
• An organization may take contradictory actions
either simultaneously or with a gap of time
10. • For example, a firm is engaged in closing down
of some of its business and at the same time
expanding some.
• Strategy is future oriented. Strategic actions
are required for new situations which have
not arisen before in the past.
11. • Strategy requires some systems and norms for
its efficient adoption in any organization.
• Strategy provides overall framework for
guiding enterprise thinking and action.
12. CONCEPT OF STRATEGY
• The concept of strategy is based on three subsidiary
concepts: Competitive advantage Distinctive
capabilities and
• Strategic fit. Competitive advantage The concept of
competitive advantage was formulated by Michael
Porter (1985).
• Competitive advantage, Porter asserts, arises out of a
firm creating value for its customers.
