The Concept Of Good And Bad Strategy

2109 Words9 Pages
The Concept of Good and Bad Strategy The concept of strategy is a fundamental issue for an organization. A successful organization mostly depends on how much good strategy they have. When there is good strategy, it can take the company to achieve its goal and vision quite smoothly. However, if there is bad strategy, the company can be in dangerous situation. Sometimes it can collapse as well. But good strategy is not only about vision and goals; it is a force of challenges that need to be achieved foe an organization. From Rumelt’s point of view, he mentions that Good strategy should be simply manages to meet the challenges an organization faces. It is not about achieving goals but moving the organization forward. Good strategy is all…show more content…
But it is not for granted which action could be the main element of good strategy. So the organization should work on them and find out which is the best strategy. Secondly, a guiding policy is much needed for the good strategy to work out. Good guiding policy resolves the diagnosed obstacles. Without a good diagnosis guiding policies cannot be implemented. After taking action on at least on one phase it can be said if the guiding policy can be implanted or not. Guiding policy often removes obstacles by sources of advantage. A guiding policy creates advantage by anticipating action and reaction of others, by reducing complexity and ambiguity of the situation (Rumelt, p85). Thirdly, a set of coherent actions should be carrying out the guiding policy. Guiding policy and coherent actions are dependent on each other. The steps within the kernel of strategy should be coherent. They should be coordinated with each other to make the most of the action. By coherence of kernels strategy can solve out specific challenges. Sources of Power Good strategy can be achieved by using sources of power like leverage, proximate objectives, design, focus etc. a good strategy can enhance right focus on mind, energy and action. This focus leads to outcomes that are source of power leverage. Leverage is correlated with three facts – anticipation, pivot points and concentration. Anticipation is looking onto other’s behavior, policies, preferences, and
Open Document