Strategy is the direction and scope of an organization over the long term, which achieves advantages for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations.
The important lenses /essence of strategy are:
1. Long term objective: Strategy is formulated keeping in mind the log term objectives of the organization. It is so because it emphasizes on the long term growth and development. Strategy is future oriented and therefore concerned with the objectives which have a long term perspective.
2. Competitive advantage: Whenever strategy is formulated, managers have to keep in mind the competitors of the organization. The environment has to be continuously monitored for forming a strategy. Strategy has to be made in a sense that the firm may have competitive advantage. It makes the organization competent enough to meet the external threats and profit from the environmental opportunities
3. Vector: Strategy involves adoption of the course of action and allocation of resources for meeting the long term objectives. From among the various courses of actions available, the managers have to choose the one which utilizes the resources of the organization in the best possible manner and helps in the achievement of the organizational objectives. The best possible course of action connects the dots in the same direction (i.e. vector) so that the organization can achieve best possible results through connected dots of actions aligned in the same direction.
4. Synergies Once we take a series of decisions to accomplish the objectives in the same direction, there will be synergies. Strategies boost the prospects by providing synergies. Synergies are the savings the organization endures by optimally utilizing it's resources in proper style and configuration to meet the long term objectives.
1. Long term objective: Strategy is formulated keeping in mind the log term objectives of the organization. It is so because it emphasizes on the long term growth and development. Strategy is future oriented and therefore concerned with the objectives which have a long term perspective.
2. Competitive advantage: Whenever strategy is formulated, managers have to keep in mind the competitors of the organization. The environment has to be continuously monitored for forming a strategy. Strategy has to be made in a sense that the firm may have competitive advantage. It makes the organization competent enough to meet the external threats and profit from the environmental opportunities
3. Vector: Strategy involves adoption of the course of action and allocation of resources for meeting the long term objectives. From among the various courses of actions available, the managers have to choose the one which utilizes the resources of the organization in the best possible manner and helps in the achievement of the organizational objectives. The best possible course of action connects the dots in the same direction (i.e. vector) so that the organization can achieve best possible results through connected dots of actions aligned in the same direction.
4. Synergies Once we take a series of decisions to accomplish the objectives in the same direction, there will be synergies. Strategies boost the prospects by providing synergies. Synergies are the savings the organization endures by optimally utilizing it's resources in proper style and configuration to meet the long term objectives.