Long Range Planning © Heinz Weihrich
Equally important, the matrix 'forces' practicing managers to analyze the situation of their company and to developstrategies, tactics, and actions for the effective and efficient attainment of its organizational objectives and itsmission.
The term 'strategy' (which is derived from the Greek word 'strategos', meaning 'general') has been used in differentways. Authors differ in at least one major aspect, Some, such as Kenneth Andrews,
Alfred D. Chandler
George A.Sterner/John B. Miner,
and Richard Vancil,
focus on both the end points (purpose, mission, goals, objectives) andthe means of achieving them (policies and plans). But other writers such as Igor H. Ansoff
and Charles W.Hofer/Dan Schendel
emphasize the means to the ends in the strategic process rather than the ends
The greatvariety of meanings of the word 'strategies' is illustrated in the glossary of one book:
[Strategies are] general programs of action and deployment of emphasis and resources to attain comprehensive objectives; theprogram of objectives of an organization and their changes, resources used to attain these objectives, and policies governing theacquisition, use, and disposition of these resources; tile determination of the basic long-term objectives of an enterprise and theadoption of courses of action and allocation of resources necessary to achieve these goals.
In this article, primarily because of space limitations, the narrow meaning will be used, that is, the ends will not beemphasized so that sufficient attention can be given to the analysis of the current situation. It is assumed that thepurpose of the firm has already been established, yet is subject to change after an evaluation of the situation.
Figure 1. Strategic planning process
Forecastof FutureEnvironmenPresentExternalEnvironmenExternalTreats andOpportunities