What is Strategy?Strategy is specifically an action the managers of a company take to attain a specific goal. It can also be defined as a general direction set for the company and its various departments to attain a desired state in the future. To apply a strategy, a company must follow a strategic planning process. Show
Strategy can also be termed as the information and knowledge of the goals, and the uncertainty of events, and the want to consider the likelihood or behavior of others. Strategy is the set of decisions in an organization that shows the objectives and goals of the organization that reduces the key policies and plans for achieving the given goals, and those actions that define the business the company is to carry on, the type of human and economic organization it wants to be, and the reward it plans to create for its stakeholders. Strategic ManagementStrategic management is the plan through which the strategies are applied to the organization to achieve its goals. In other words, strategic management is the plan of action the managers employ to apply the given set of plans by the business owners to profit and remain competitive in the market. Strategic management, according to Professor Henry Mintzberg, is to manage the five P's: Plan, Ploy, Pattern, Position, and Perspective.
 Updated on 24-Dec-2021 10:51:36
Although strategy and strategic plan are considered as the same, it is wrong to assume so. There are some distinct differences between strategy and strategic plans. Strategy and strategic plan are the parts of financial planning wherein companies try to chart their future course of action depending on the resources that the company has under its control. Let’s look at strategy and strategic planning individually to understand what they mean and what their basic differences are. What is Strategy?Strategy is the base of planning but it is not the planning itself. The strategy provides the platform for the company to build its financial planning in order to run a project smoothly and without any hindrance. Strategy is the central thread that ties a company’s competencies, resources, and opportunities. It also looks at the threat that is created by the risks that may arise due to the application of the strategy or changes in the business environment. Strategy is a link that connects the multiple goals and objectives of a company that are taken to satisfy the needs of the stakeholders and the plans and policies used by the company to achieve these goals. Resource deployment is also a major part of a strategy. In fact, it is important to note that advantages are not only created by product and market positioning but can stem from organized resource deployment as well. Therefore, the final success of a company may not be inherent only in the scope but may be greatly influenced by resource deployment and competitive advantages. Components of a StrategyThe four key components of a Strategy – scope, distinctive competencies, competitive advantages, and synergies created between product/market segments and distinctive competencies can determine the success of a company to a large extent. What is Strategic Planning?It is notable that to succeed in the market, companies need a balanced portfolio of businesses or products. Strategic planning ensures that a company’s portfolio is balanced in terms of profit, overall risk, and cash flows. Strategic planning is, therefore, the tool by which the progress of a company can be ensured. It must be noted that since decision-making is performed at the top level of a company, strategic planning should be applicable at the ground level as well. Popular business models such as the Boston Consulting Group (BCG) Model and the nine-cell matrix model developed by the General Electric (GE) company are based on this aspect of business operations. Strategic planning decides the strategy. Planning is done at the top level of a company while the strategy is applied at the ground level where managers apply the strategies as directed by the top-level managers. The main characteristic features of Strategic Planning can be summarized as follows −
ConclusionStrategy and strategic planning may be interrelated but in essence, they are two different aspects of a business’s operation. A strategy looks at the qualitative aspect of operations more than strategic planning, whereas the latter is more engaged in quantitative aspects. Strategic planning needs a good idea of the market as well as the strengths and weaknesses of the company. Although it is tough, creating a good strategic plan to build a strategy that works well can be a milestone of success for the companies.
Updated on 23-May-2022 12:24:50
What is difference between strategic management and strategy?The phrase "strategic management" is sometimes used as a synonym for "strategy," but the two terms are not actually the same. A company's strategy is its plan for victory in competition with other companies. Strategic management is a process for formulating and implementing a strategy.
What is difference between strategic and tactical?While strategy is the action plan that takes you where you want to go, the tactics are the individual steps and actions that will get you there. In a business context, this means the specific actions teams take to implement the initiatives outlined in the strategy.
Whats does strategic mean?“Being strategic” means being perceptive, future-oriented, open-minded, proactive, working off the front-foot, and making and taking decisions based on evidence and calculated hunches.
What is an example of a strategy?For example, company A's strategy might be to become the cheapest provider in the smartphone market. Their managers then need to negotiate with suppliers to reduce the costs of the electronic components used in production. This is a tactic to achieve the set strategy.
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Strategic and strategy difference
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