Introduction : Strategy and Strategic Management
What is Strategy?
Strategy is a plan, some kind of course of action which is deliberately taken, a protocol or set of protocols, to handle a situation. Strategy has a host of definitions in various fields. In management terms it can be a collective, comprehensive and organised plan.
“Strategy can be seen as a multi-dimensional concept that embraces all of the critical activities of the firm, providing it with a sense of unity, direction and purpose, as well as facilitating the necessary changes induced by its environment”., Hax and Majluf (1991,p.2)
The above definition by the authors proclaims that strategy is multi–dimensional and clings together all the resources and efforts in aiding the firm to bring about changes forced by the environment. Although the statement speaks about strategy being multi-dimensional, it is very general. According to Johnson, Scholes & Whittington (2009:3) Strategy is “the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations”. The definition above gives a better understanding of the term strategy than the one given Hax and Majluf. The statement by Johnson, Scholes & Whittington (2009:3) accords with the significance of direction and scope of the firm and also that strategy is a long term plan. Consideration is given to the fact of configuration of resources in fluctuating environment for realizing stakeholder expectations and reaching goals. What is Strategic Management?
According to Rue and Holland (1989, p.3), Strategic Management is a process by which the management figures out the long-term scope and performance of the firm by assuring establishment, proper application and constant appraisal of the strategy.