MEANING OF STRATEGY

   MEANING OF STRATEGY
DR SHASHI AGGARWAL

   MEANING OF THE STRATEGY

  STRATEGY IS DERIVED FROM GREEK WORD “ STRATEGOS” MEANING A GENERAL: THE ACTUAL DIRECTION OF MILITARY FORCE

https://www.youtube.com/playlist?list=PL9w1NV68V2021sSUDoHQCv76qdaGFlbwZ
PLAYLIST ON STRATEGIC MANAGEMENT

  STRATEGY IS DEFINED AS :

1.       WHERE THE ORGANIZATION WANTS TO GO TO FULFILL ITS PURPOSE AND ACHIEVE ITS MISSION

2.       IT PROVIDES THE FRAMEWORK FOR  GUIDING CHOICES WHICH DETERMINE THE ORGANIZATION’S NATURE AND DIRECTION AND THESE CHOICES RELATE TO THE ORGANIZATION’S PRODUCTS OR SERVICES,MARKETS AND KEY CAPABILITIES,GROWTH,RETURN AND ALLOCATION OF RESOURCES

   STRATEGY IN SIMPLE WORDS

1.       MEANS TO ACHIEVE THE GOALS

2.       IT REPRESENTS OFGANIZATION’S RESPONSE TO ITS ENVIRONMENT OVER A PERIOD OF TIME.

KEY ELEMENTS OF STRATEGY:

         i.            WHAT BUSINESS TO BE IN

       ii.            WHICH MARKETS TO BE SERVED

      iii.            WHAT NEED TO BE MEET

      iv.            WHAT PRODUCTS TO OFFER

       v.            WHERE TO LOCATE FACILITIES

   STRATEGY

1. ENCOMPASSES THE OBJECTIVES AND SUB PLANS OF THE ORGANIZATION
2. PLANS OF ACTION FOR THE ACHIEVEMENT OF THE THOSE OBJECTIVES AND SUB PLANS IN COMPETITIVE ENVIRONMENT
3. CONSIDERS NOT ONLY ENDS BUT ALSO MEANS
4. DECLARATION OF INTENT OF THE ORGANIZATION
5. DEFINES WHAT THE ORGANIZATION WANTS TO BECOME IN THE LONG RUN
6. THE OVER ALL AIM OF THE STRATEGY AT CORPORATE LEVEL WILL BE TO MATCH OR FIT THE ORGANIZATION TO ITS ENVIRONMENT IN THE MOST ADVANTAGEOUS WAY POSSIBLE
7. NOT SIMILAR WITH LONG TERMS PLAN BUT RATHER CONSISTS OF AN ORGANIZATION ‘S ATTEMPT TO REACH SOME PREFERRED FUTURE STATE BY ADOPTING COMPETITIVE POSITION AS CIRCUMSTANCES CHANGE

   DEFINITION OF STRATEGY

 CIMA: STRATEGY IS COURSE OF ACTION INCLUDING THE SPECIFICATION OF RESOURCES REQUIRED TO ACHIEVE A SPECIFIC OBJECTIVES

   DEFINITION BY WILLIAM F GLUECK

 STRATEGY IS A UNIFIED, COMPREHENSIVE AND INTEGRATED PLAN RELATING THE STRATEGIC ADVANTAGES OF THE FIRM TO THE CHALLENGES OF THE ENVIRONMENT. IT IS DESIGNED TO ENSURE THAT THE BASIC OBJECTIVES OF ENTERPRISE ARE ACHIEVABLE

 TO SUM UP THE STRATEGY MAY BE DEFINED AS AN INTEGRATED SET OF ACTIONS AIMED AT SECURING A SUSTAINABLE COMPETITIVE ADVANTAGE.

   FEATURES OF STRATEGY

1.       GENERALLY LONG RUN IN NATURE

2.       IT IS AN ACTION PLAN AND MORE SPECIFIC THAN OBJECTIVES

3.       SINGLE USE PLAN MADE FOR NON REPETITIVE ACTIVITIES

4.       PROVIDES DIRECTION TO GOALS

5.       FORMULATED BY TOP LEVEL MANAGERS AND PROVIDES A GUIDE FOR MIDDLE AND LOWER LEVEL MANAGERS TO MAKE SUB STRATEGIES

6.       COORDINATES ORGANIZATIONAL’S INTERNAL ENVIRONMENT WITH THE EXTERNAL ENVIRONMENT

7.       ALLOCATES LINTED ORGANIZATION’S RESOURCES

8.       ENABLES THE FIRMS TO OUTPERFORM THE COMPETITORS

   STYLES OF MAKING STRATEGY

    ACCORDING TO MINTZBERG  THREE STYLES OF MAKING STRATEGY

1.       ENTREPRENEURIAL MODE

2.       ADAPTIVE MODE

3.       PLANNING MODE

   ENTREPRENEURIAL MODE

1.       APPLIES TO RISK SEEKING ORGANIZATION

2.       TOP LEVEL EXECUTIVE  FRAME STRATEGIES AIMED AT THE GROWTH OF THE ORGANIZATION

3.       AIMS AT GROWTH ORIENTED STRATEGIES PURELY BASED ON PERSONAL ESTIMATES OF THE FUTURE

4.       OFFENSIVES IN NATURE

   ADAPTIVE MODE

1.       DEFENSIVE

2.       MAKING STRATEGIES IN AREAS WHERE ORGANIZATION WANTS TO TAKE RISK

3.       ACCEPT THE CHANGES AS THEY OCCUR

4.       ADAPT ACCORDING TO THE ENVIRONMENT

   PLANNING MODE

1.       SIMILAR TO ENTREPRENEURIAL MODE BUT MORE SCIENTIFIC AND SYSTEMATIC IN NATURE

2.       FUTURE ORIENTED AND MODE OF STRATEGY

3.       THE ESTIMATES OF FUTURES ARE BASED ON STRUCTURED,SYSTEMATIC AND RATIONAL ANALYSIS OF ENVIRONMENTAL THREATS AND OPPORTUNITIES

   CHOICE OF STYLE

1.       MATURITY LEVEL OF THE ORGANIZATION

2.       NATURE OF THE ORGANIZATION

3.       LEADERSHIP STYLES

ENTREPRENEURIAL MODE: CRISIS

PLANNING: STABLE SITUATIONS

   LEVELS OF STRATEGY

•                   CORPORATE LEVEL STRATEGY: FOR THE COMPANY AS WHOLE. RELATED TO COMPANIES WHICH PRODUCE MORE THAN ONE PRODUCT. FORMULATED BY TOP MANAGEMENT. MAINLY CONCERNED WITH:

•                   WHAT BUSINESS THE ORGANIZATION WILL OPERATE

•                   HOW THE STRATEGIES OF THE BUSINESS WILL BE COORDINATED TO STRENGTH THE ORGANIZATION ‘S COMPETITIVE POSITION AND HOW RESOURCES WILL BE ALLOCATED

   BUSINESS LEVEL STRATEGY

•                        SINGLE LINE OF BUSINESS

•                   ORGANIZATION HAS DIFFERENT BUSINESS OPERATE IN DIFFERENT ENVIRONMENT

•                   TATA GROUP OF INDUSTRIES HAS DIFFERENT BUSINESS LIKE AUTOMOBILE,WATCHES,JEW ELLARY,MOBILE PHONES,SALT ETC

•                   EACH UNIT IS TREATED AS STRATEGIC BUSINESS UNIT

•                   FORMULATED BY BUSINESS MANAGERS

   FUNCTIONAL LEVEL OF STRATEGY

•                     FUNCTIONAL LEVEL SUPPORTS BUSINESS LEVEL STRATEGY

•                     MADE FOR EACH FUNCTIONAL AREA ARE CALLED : PRODUCTION,MARKETING.ADVERTISING,FINANCE,PERSONNEL ,RESEARCH AND DEVELOPMENT ETC