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Define the term strategy.

1. A plan of action intended to accomplish a specific goal.

- Strategy entails: specifying the organization's mission, vision, and objectives;


developing policies and plans to execute the vision; and allocating resources to
implement those policies and plans.

- Strategy is largely about using internal assets to create a value-added


proposition. This helps to capture opportunities in the competitive environment
while avoiding threats.

- Experts in the field of strategy define the potential components of strategy and
the different forms strategy can take.
2. Method or plan chosen to bring about a desired future, such as achievement of a
goal or solution to a problem.
3. The art and science of planning and gather resources for their most efficient and
effective use.
4. Strategy According to Henry Mintzberg Henry Mintzberg, in his 1994 book, The
Rise and Fall of Strategic Planning, points out that people use "strategy" in several
different ways, the most common being these four:
- Strategy is a plan, a "how," a means of getting from here to there.
- Strategy is a pattern in actions over time; for example, a company that regularly
markets very expensive products is using a "high end" strategy.
- Strategy is position; that is, it reflects decisions to offer particular products or
services in particular markets.
- Strategy is perspective, that is, vision and direction.

5. Kenneth Andrews presents this lengthy definition of strategy in his book, The
Concept of Corporate Strategy
"Corporate strategy is the pattern [italics added] of decisions in a company that
determines and reveals its objectives, purposes, or goals, produces the principal

policies and plans for achieving those goals, and defines the range of business the
company is to pursue, the kind of economic and human organization it is or intends
to be, and the nature of the economic and non-economic contribution it intends to
make to its shareholders, employees, customers, and communities
3. Organization which engages in strategic management n why do they
practice.
A number of reasons are given by authors to as why organizations should engage in
strategic management. Many research studies show both financial and non financial
benefits which can be derived from a strategic-management approach to decision
making.
Financial Benefits
The question "Why should an organization engage in strategic management?" must
be answered by looking at the relationship between strategic management and
performance. Hofer and Schendel (1978) indicate that formalized strategic
management (strategic planning) does result in superior performance by
organizations. Each of these studies was able to provide conceiving evidence of the
profitability of strategy formulation and implementation. The formalized strategic
management process does make a difference in the recorded measurements of
profits, sales, and return on assets. Organizations that adopt a strategic
management approach can expect that the news system will lead to improved
financial performance.
Non financial Benefits
Regardless of the profitability of strategic management, several behavioral effects
can be expected to improve the welfare of the firm. Yoo and Digman emphasize that
strategic management is needed to cope with and manage uncertainty in decision
making. They present several benefits of strategic management:
1
It provides a way to anticipate future problems and opportunities.
2
It provides employees with clear objectives and directions for the
future of the organization.
3
It results in more effective and better performance compared to nonstrategic management organizations.
4
It increases employee satisfaction and motivation.
5
It results in faster and better decision making and
6
It results on cost savings.

Moreover, stressing strategic management offers the following process and personal
benefits
1
It
opportunities.
2
It
3
It
activities.
4
It
5
It

allows

for

identification,

prioritization,

and

exploitation

of

provides an objective view of management problems.


represents a framework for improved coordination and control of
minimizes the effects of adverse conditions and changes.
allows major decisions to better support established objectives.