Question

Define strategy.

Hint:

Think of strategy as a company's 'game plan'. Just like in a chess game, it involves thinking several moves ahead to position yourself for victory against your opponents.

Answer 1

A strategy is a comprehensive, long-term plan of action designed to achieve the major goals and objectives of an organization. It provides a roadmap that guides the allocation of a company's resources to gain a sustainable competitive advantage in a dynamic environment.
Key characteristics of a strategy are:

Long-Term Focus: Strategy deals with the long-range direction of the organization, typically looking ahead three to five years or more. It is not concerned with day-to-day operational details.

Scope of Activities: It defines the scope of the organization's activities—what businesses it will be in and what markets it will serve.

Competitive Advantage: A central aim of strategy is to create and maintain a competitive advantage, which is a unique position that allows the organization to outperform its rivals.

Resource Allocation: Strategy involves making decisions about the allocation of key resources (financial, human, physical) to pursue the chosen objectives.

Environmental Fit: It aims to achieve a strategic fit between the organization's internal capabilities (strengths and weaknesses) and its external environment (opportunities and threats).

Stakeholder Expectations: A good strategy considers the expectations and values of key stakeholders, such as shareholders, employees, customers, and society at large.

In essence, strategy is about answering the fundamental questions: "Where are we now?", "Where do we want to be?", and "How will we get there?".