Strategy

Strategy -  is a plan of action designed to achieve a particular goal. Strategy deals with the how part rather than the what -source Wiki
The how part oftern defined by a mission statement too..

Strategy is required in every field, whether it is Business, Military or Sports in order to "Win".

"Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations". Source -Tutor2U

Strategy - is can be defined for short term (1-2yr), medium term(2-3 years) and long term (3-5 yrs) to acheive organaization vision and goals.

Let us look at key elements of defining the strategy for organization.

• Environment : Industry conditions, market dynamics, legal & statuatory requirements, Goverment controls  and external/internal elements need to be ascertained.
• Playing Field: Based on enviornment organziation needs to fix its playng field Ex. Small medium business segments or Large bx segments or consumer etc.
• Stake holders : Expected earnings, Investment options, equity/cash flows options etc. need to be planned.
• Competition : Competition strategies, strengths and weaknesses must be known to create a plan for competitive edge.
• Customer: Their profiles,  buying habits, expectations etc should be considered while drafting the plans to minimize the gaps between delivery and customer.
• Compliments : What compliments or substitutes available for the product or services in the market.
• Suppliers : who are the suppliers, supply demands, availbility & proximity  etc.
• Resources: Important is to know organization capabilities and resource requirements such as facilities, competencies, assests etc. to deliver the product or services to its customers.

Well strategy can be defined at various levels, operational, business unit or Team level and can leverage various tools defined by management gurus like Peter druckers 5 force analysis or SWOT analysis / BCG (Boston Consulting Group)matrix etc.

Some companies during the recession periods turned to quartely life cycles, in my view its a short sighted strategy and very cautious approach.

Look at one of the famous GE Matrix used for portfolio management

Market Attractiveness is defined by Size, profit levels growth etc and while competitive strengths can be decoded based on Market share, Cost Base and Brand equity, customer loyalty.

Understanding Interplay between strategy and execution is important and requires a complete analysis.

 Let us look at 2 x 2 matrix which explians interlock between strategy and execution.

a Sound strategy and a sound execution can take an organization to newer heights.










A great strategy can be successful if organziation plans equally a great execution. ( Read execution in my blog)