Attaining Sustainable Organizational Growth and Profitability
Copyright Enterprise Design Labs 2005 - 2018
Generally, strategy refers to how - means by which - a given objective will be achieved. Strategy in the general sense is concerned with the relationships between ends and means; that is, between the results we seek and the resources at our disposal. Strategy is concerned with formulating and then carrying out courses of action intended to attain specific objectives by mobilizing organization's resources - deploying the resources at the organization's disposal.
Strategy Hierarchy Layered Concept Model
The term "strategy" is an overloaded in everyday business conversations, because most people including professional practitioners do not bother to explicitly establish their point of view into what is essentially a layered concept that exists at least three (3) levels such as corporate strategy, business and competitive strategy, and Operations strategy.
Business Functions - Each business unit comprises a number of functions such as finance, marketing, HR, sales, IT, etc., that make up the total activities within a business unit. The strategic role of each function is to support those competitive dimensions within a market for which it is wholly or partly responsible. In this way the market comprises of the agenda based on functional strategies and becomes the mechanism for determining development and investment priorities, which is part of Corporate Strategy.
The concept of viewpoint is a device that helps in developing a robust and successful strategy by enabling approaches to highlighting problems that would undermine an intended strategy at implementation and execution. The viewpoints or approaches as proposed by Mintzburg include:
Decision makers or managers start with a given perspective, conclude that it calls for a certain position, and sets about achieving it by way of a carefully crafted plan. Over time things change; a pattern of decisions and actions marks movement from starting point to destination end-point (goal). This pattern of decisions and actions is called "realized pattern" or "emergent" strategy. The actual strategy of an organization is the combination of the executed parts of deliberate strategy and emergent strategy.
Roles of strategy in Business
Strategy in a business organization is about how the organization seeks to survive and prosper within its environment over the long-term. Strategy provides an organization with an offensive device to compete against competitors and guides their actions when faced with a range of choices. Strategy plays a number/variety of roles in organization's success, including:
Strategy is a significant determinant on a company's success or failure, in addition to the significance of competence of its managerial leadership.
I am a computer scientist by education and training. My interests are in modeling complex business and social systems to foster better strategic and operations management processes in delivering value to customers while meeting the expectations of stakeholders.