A strategy is the explained plan of an enterprise to survive in a competitive business environment with the sole aim to break even and increase in size.
Business sell either goods or services in a competitive environment that requires them to increase customer satisfaction as well as protect shareholders interest for their continued existence in future.
Based on the above, plans are set-up to guide managers in their decision to use resources efficiently in order to achieve the objective of the organisation.
Read Also: How To Break Into The Market With Your Brand
A strategy reflects an organisation long-term goal and the plans to achieve them. It shows a plan to achieve the desired vision.
What is the difference between tactics and strategy?
A tactic refers to the specific action taken to reach the set goals in line with a defined strategy. For example, company A strategy might be to become the cheapest provider of automobile in the market. In order to achieve the stated objective the manager of company A may need to negotiate with suppliers to reduce the cost of the raw material of the assembled spare parts used in production. This is called a tactics to achieve the desired goal.
Why is having a business strategy important?
-It shows the strength and weakness of the company
-it answers how the company tends to respond to threats and opportunities in a competitive environment.
-it takes into account the resources at hand and how best to deploy them.
In understanding the dynamics of strategic management it is important to consider the views from various school of thought who saw a problem with the static model of strategic process.
In the actual sence strategy is both a dynamic and interactive process
Kindly send your feedbacks and inquiries to: samuelnneke@yahoo.com
Listen to the podcast on this topic here
© Samuel Nneke