Organisational Theory - What Is Strategy?

What is strategy?

Strategy according to Chandler is "the adoption of courses of acton and the allocation of resources necessary to achieve the organisation's goals".

Differences between strategy and tactics

Strategy:

- strategetig decisions establish general purpose and direction of the enterprise and the methods by which they will be achieved.

Tactic:

- tactical decisions are day-to-day decisions associated with implementing plans and operating the enterprise.

Differences between strategy and goal

Strategy:

- strategy refers to both means and ends: where we wish to be in some point of time and how we wish to get there.

Goals:

- goals refer to ends: what we wish to achieve by a certain point in time.

(Not all goals have strategic implications)

Two approaches: Planning mode and evolutionary mode.

Planning mode

Planning mode views strategy as a plan or explicit set of guidelines developed in advance. Managers identify where they want to go and develop a systematic and structured plan to get there.

Evolutionary mode

The evolutuionary mode does not necessarily view strategy as a well-thought-out and systematic plan. Rather, it views strategy as a stream of significant decisions evolving over time.

Levels of strategie

Many organisations are in diverse lines of business, most of which are only vaguely