Strategy Is the Long-Term Direction of an Organization

1. Strategy

Strategy is the long-term direction of an organization.

Strategy is the creation of a unique and valuable position involving a different set of activities (Porter, 1996). Porter (1996) also points out that strategic position should have a horizon of ten years or more, not a single planning circle.

The differentiation of strategy is important, because a company can outperform胜过rivals only if it can establish a different strategy that it can preserve (Porter, 1996). And competitive strategy is about being different, and it means deliberately 慎重的choose a different set of activities than rivals do, to deliver a unique value to customers (Porter, 1996).

Levels of strategy: Corporate-level strategy is concerned with the overall scope of an organization and how value is added to the constituent 构成 businesses of the organizational whole. Business-level strategy is about how the individual businesses should compete in their particular markets. Operational strategies are concerned with how the components of an organization deliver effectively the corporate-and business-level strategies in terms of resources, processes and people.

The corporate, business and operational levels need to be linked, and it underlines the importance of integration in strategy. Each level needs to be aligned with 联盟 the others, and strategy is typically complex, requiring careful and sensitive management.

Strategy statements should have three main themes: the fundamental goals, mission, vision or objectives that the organization seeks; the scope or domain of the organization’s activities; and the particular advantages or capabilities it has to deliver all of these.

The Exploring Strategy Model includes understanding the strategic position of an organization; assessing strategic choices for the future; and managing strategy in action. Then, understanding the strategic position, making strategic choices and turning strategy into action is interdependent. It also emphasizes the potentially nonlinear nature of strategy: Position, choices and action should be seen as closely related and integrated, and in practice no one has priority over another.

In general, management’s core of strategy is defining a company’s position, making trade-offs, and forging 铸造 fit among activities (Porter, 1996).

The strategic position is concerned with the impact on strategy of the external environment, the organization’s strategic capability-resources and competences, the organization’s goals and the organization’s culture.

Strategic position can be divided into variety多样化-based positioning, need-based positioning, and access-based positioning (Porter, 1996). Strategic position can be based on customers’ need, customers’ accessibility or the variety of companies’ products or services (Porter, 1996).