What is strategy?

What is strategy?

1. A course of action, including the specification of resources required, to achieve a specific objective

2. Concerned with

   • purpose and long term direction
   • scope of organisations' activities
   • meeting challenges from external environment
   • effective use of internal resources
   • delivering value to those who depend on the organisation

3. Strategic management considers

   • scope of business activities
   • matching activities to capabilities
   • allocation of resources
   • operational decisions which follow
   • values and expectations of senior management
   • long-term direction
   • change in the business

4. Mintzberg: 5 Ps of Strategy

   • Plan
     • Provide direction
   • Pattern
     • consistent
   • Ploy
     • tactic to deter/confuse competition
   • Postition
     • where organisation places itself within market or environment
   • Perspective
     • perception of environment and interpreting the information from it

5. Strategic levels

   • Corporate
     • Purpose and scope
   • Business
     • approach to market
   • Functional
     • long term management policies

6. Strategic areas

   • Financial
     • capital structure, dividend policy
   • Investment
     • use of capital to provide strategically valuable resources
   • Competitive
     • how the business out-performs rivals