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FINAL INTERVIEW

The document discusses various definitions of strategy by notable authors, emphasizing that strategy involves a set of organized activities aimed at achieving long-term organizational goals while adapting to environmental changes. It outlines the importance of strategic business analysis, which focuses on long-term perspectives and external factors, and differentiates between corporate, business, and functional strategies within an organization. Overall, strategy is portrayed as essential for business success and competitive advantage.

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Jenica Jurado
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10 views

FINAL INTERVIEW

The document discusses various definitions of strategy by notable authors, emphasizing that strategy involves a set of organized activities aimed at achieving long-term organizational goals while adapting to environmental changes. It outlines the importance of strategic business analysis, which focuses on long-term perspectives and external factors, and differentiates between corporate, business, and functional strategies within an organization. Overall, strategy is portrayed as essential for business success and competitive advantage.

Uploaded by

Jenica Jurado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Strategy can be defined in a number of different ways.

We should be aware
that every definition is likely to be engrained within the different outlooks adopted by
its authors. As individuals we all formulate strategies to help us achieve certain goals
or objectives.

I have prepared here three widely use definitions of strategy by three different authors.
According to Peter Drucker, a strategy is a pattern of activities that seek to achieve the
objectives of the organization and adapt its scope, resources and operations to
environmental changes in the long term.
Drucker also emphasized that a strategy contains several elements:
1. A strategy consists of organized activities.
2. The purpose of these activities (the strategy) is to achieve an objective.
3. Strategy is long-term. Formal strategic planning by large companies, for
example, might cover five years or ten years into the future, and for some
companies even longer.
4. The strategic choices that an enterprise makes are strongly influenced by the
environment in which the enterprise exists.
5. The environment is continually changing, which means that strategies cannot
be rigid and unchanging.
Strategies involve an enterprise in doing different things with different resources over
time, as it is forced to adapt to changes in its environment.

Johnson, Scholes and Whittington defined strategy as “the direction and scope of an
organization over the long term, which achieves advantage in a changing environment
through its configuration of resources and competencies with the aim of fulfilling
stakeholder expectations.”

MICHAEL PORTER
• A competitive position, “deliberately choosing a different set of activities to
deliver a unique mix of value”

BASICALLY, A STRATEGY IS A SET OF ACTIVITIES TO ACHIEVE


ORGANIZATIONAL GOALS
Strategy is at the heart of business. All businesses have competition, and it is
strategy that allows one business to rise above the others to become successful.
Even if you have a great idea for a business, and you have a great product, you are
unlikely to go anywhere without strategy.
Strategic business analysis are those actions and decisions made by
management while trying to understand the impact of strategic events like:
introduction or development of new product line, setting up a factory in a new
location, employing key staff, selecting organizational structure, investing in new
technology, managing risks, complying with relevant laws and
regulations, implementing changes, etc. Strategic business analysis look at
things from both corporate perspective and longer term view. In modern day
business, strategic business analysis is hard to separate from strategic
management and planning where management have to battle with the ever
changing business environment. Strategic business analysis depicts the role of
strategy in business. The strategic business analysis have the following
characteristics:

1. Long term in nature: for any business analysis to be strategic in nature, it


must have a long term view. When designing a balanced scorecard for
example, management should think of the impact that each target and
objectives that is contained in the strategic map will do to the long run survival
of the company.
2. Focus on external events and activities: senior managers spend about 60% of
their time gathering and interpreting information from outside source which
will significantly improve decision making process. They interact with people
and organizations outside the entity in order to achieve this goal.
3. Place more emphasis on qualitative matters: in as much as financial
indicators play vital role in shaping the fortune a business entity, attention
should also be given to those qualitative factors that an establishment cannot
afford to ignore, else, business failure will imminent. A qualitative emphasis
means that detailed calculations and manipulation of figures are unnecessary.
All that is needed is the big picture.

CORPORATE STRATEGY
The first level of strategy in the business world is corporate strategy, which
sits at the ‘top of the heap’. Corporate strategy is concerned with deciding which
business or businesses an entity should be in, and setting targets for the
achievement of the entity’s overall objectives.
For some companies, outlining a corporate strategy will be a quick and easy process.
For example, smaller businesses who are only going to enter one or two specific
markets with their products or services are going to have an easy time identifying what it
is that makes up the overall corporate strategy.
BUSINESS STRATEGY
It is best to think of this level of strategy as a ‘step down’ from the
corporate strategy level. In other words, the strategies that you outline at this
level are slightly more specific and they usually relate to the smaller businesses
within the larger organization. Business strategy, also called competitive strategy,
is concerned with how each business activity within the entity contributes towards
the achievement of the corporate strategy.
FUNCTIONAL STRATEGY
This is the day-to-day strategy that is going to keep your organization
moving in the right direction. Functional strategy is also called operational
strategy. These decisions include product pricing, investment in plant, personnel
policy, and so on. It is important that these strategies link to the strategic
business unit strategies and through those strategies, in turn, to the corporate
strategy, as the successful implementation of these is necessary for the
fulfillment of both corporate and business objectives.

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