The Importance Of A Good Strategy For A Strong, Successful, And Well Rounded Company

Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).

Strategy is not only a tool for outfoxes the competition but also an incredible means for creating and shaping a company

Strategic planning, an umbrella term used that comprises of and condenses such events as forecasting, performance measurement, cost reduction, etc., has been confirmed to be very beneficial but it is also restricted. It is a fix that becomes only part of the inquiry of organizational efficacy and only deals with some of the problems organizations face. This paper presents of the strategic procedures as well as strategic strength to make important relations and important differences within an organization. The outcome is an outline of the basics of strategic management.

A strategy is said to be a plan that is made for the long term success of a product or brand. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Formulating effective strategies is a considerably long process in itself that combines analysing several factors, situations and issues that are already present in a company and looking to improve on them alongside trying to implement various innovations and ideas to collectively create a direction towards which they can move and direct the resources available to them.

Strategy can be defined as being different from one’s competitors, finding the race to operate and accomplished it. According to Michael Porter (1996), while becoming better at what you do is desirable, it will not benefit you in the long run because it is something other competitors can also do. Strategies for organizations are originally developed by Michael E. Porter in 1979 by introducing the five forces model. A company can identify the industry profitability and attractiveness by analyzing the five forces of Porter (Johnson et al., 2008). And then a reasonable strategy can be set up in line with the strengths and the weakness of an organization is able to create a plan for a stronger position for the organization within its

Strategy is the long term direction of the organisation (Johnson, Whittington and Scholes, 2012). In addition strategy is ‘’the long run goals and objectives of an enterprise and the adoption of courses of an action and the allocation of resources necessary for carrying out these goals’’ (Chandler, 1962). The authors claim that a business creates its own strategy, in a way that will be best suitable for the accomplishment of its targets. The organisation has to find a way to handle their resources over a period of time, such as raw materials, in order to get the highest result of value they can. Strategy is a very crucial sector in an organisation. It needs time to be conducted but if it is done correctly it will help the organisation to get to the nearest end result of their goals. Strategies and goals are linked together. Both have a vision ahead of them. The vision of a better and more reliable organisation. Strategy, is the actual definition of the process of how a goal of a business will be achieved.

Strategy can be defined in various way by different experts in several field of studies. As stated by Grant and Jordan (2003), strategy is an instrument that allow person or operations to achieve their goals. Moreover, Mintzberg (1978, p. 935) defined that as “a pattern in a stream of decision”. Although it has a several meaning, the key concept of strategy which define by several experts shared the same point of view as tools whereby the firm or person used to fulfill their purposes.

When talking about strategy, most people simply associate it with a long term direction and plan. In fact, the components and development of strategy are far more diversified and complicated than people normally imaged. In this essay, by an review and evaluation of different approaches to strategy, it critically discuss the current debates of different approaches and discuss whether the definition of Chandler(1962) is appropriate to apply to the organization today.

Strategy comes from the ancient Greek work Strategos that combines ‘army’ & ‘to lead’ (Mintzberg 2009, pp. 6). Strategy is about predicting future; & it is also about looking for resources around you & prepares them for future. In business perspective, it means developing an edge over competitors in order to secure current customers & capture more new customers. In other words Strategy is creating Competitive Advantage. Organizations have their own ways to achieve Competitive Advantage (Scott 2005, pp. 191). Samsung chose leading in Design to achieve its Competitive advantage.

In the book “Good Strategy and Bad Strategy”, Richard Rumelt illustrates examples of success and failure of business management to explain the true meaning of the strategy, and tells companies how to develop a correct strategy and adhere to core of management strategy. He also emphasizes the central role of strategic management as to remind the readers to understand the huge difference between a good strategy and bad strategy. This book has three sections: good and bad strategy, sources of power, and thinking like a strategist. I will be evaluating strengths and weaknesses under these topics. After finish reading the book, I had gained a better understanding of what a good strategy means to the success of a company. According to Rumelt, a good strategy is coherent, where companies pursue multiple objectives that are connected with each other. Rumelt points out that a good strategy consists of three elements: diagnosis, guiding policy, and coherent action. (71) First, diagnosis means to define the obstacles and challenges that the companies are facing, and guidelines help the people to overcome the obstacles. Lastly, coherent action is the activities or actions that company did to be consistent with its guiding policy. Today, many of us lost the focus of the strategy, which results in the downward of businesses and organizations. Rumelt has defined the strategy as acknowledging the main problems and take coherent action to overcome the problems. Moreover, he illustrates

Strategy can have many different meanings, depending on the context. However, in this situation, strategy is; as Riley mentioned on the tutor2u website (2015), strategy is “Where is the business trying to get to in the long-term”. Strategy is a planned pathway that a business needs to follow in order to achieve its aims and objectives for success. Every businesses strategy is different to one another, depending on the type of business and the market they operate in. however, there can be a few similarities between every business’ strategies. Such as, Apple’s strategy is very different each other, because they operate in two different markets, however there are a few similarities between the two, for example, high prices etc. Strategy is very important, and it has to be well planned, because the business can either achieve all its objectives successfully or fail entirely. Every business’s strategy has its own strengths and weaknesses. In addition, the business has opportunities and threats as well, that can affect the business.

A Well-formulated strategy is vital for growth and development of any organization—whether it is a small business, a big private enterprise, a public sector company, a multinational corporation or a non-profit organization.

"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 fulfill stakeholder expectations". (Johnson and Scholes, 1999)

Organizational strategies sums up actions a company intends to take to achieve long-term goals. Those actions make up a company’s strategic plan. Strategic plans require involvement from all company levels. Top management creates the larger organizational strategy, while middle and lower management implement goals and plans to incorporate the overall strategy step by step. Organizational strategy comes from a company 's mission that explains why a company is in business. Each section in the company fulfills that purpose, and the mission guides all strategic decisions. A company 's vision describes what the company

A strategy on an individual level is a plan of action directed to achieve the goals. The company leadership through a process establishes and crafts a good strategy which is called strategic management. Further to defining the strategy, individuals or number of people work out a plan and implement the activities associated with the plan. The company deals with the business opportunities and challenges that provide growth and expansions when executing a plan. The leadership of an organization is defined as influencing a group of people or activity that is prepared