Nature of Strategy

Strategy implementation is “the process of allocating resources to support the chosen strategies”. This process includes the various management activities that are necessary to put strategy in motion, institute strategic controls that monitor progress, and ultimately achieve organizational goals.

According to Steiner, “the implementation process covers the entire managerial activities including such matters as motivation, compensation, management appraisal, and control processes”.

Based on the above definitions, we can understand the nature of strategy. A few aspects regarding nature of strategy are as follows:

  • Strategy is a major course of action through which an organization relates itself to its environment particularly the external factors to facilitate all actions involved in meeting the objectives of the organization.
  • Strategy is the blend of internal and external factors. To meet the opportunities and threats provided by the external factors, internal factors are matched with them.
  • Strategy is the combination of actions aimed to meet a particular condition, to solve certain problems or to achieve a desirable end. The actions are different for different situations.
  • Due to its dependence on environmental variables, strategy may involve a contradictory action. An organization may take contradictory actions either simultaneously or with a gap of time. For example, a firm is engaged in closing down of some of its business and at the same time expanding some.
  • Strategy is future oriented. Strategic actions are required for new situations which have not arisen before in the past.
  • Strategy requires some systems and norms for its efficient adoption in any organization.

Strategy provides overall framework for guiding enterprise thinking and action. The purpose of strategy is to determine and communicate a picture of enterprise through a system of major objectives and policies. Strategy is concerned with a unified direction and efficient allocation of an organization’s resources. A well-made strategy guides managerial action and thought. It provides an integrated approach for the organization and aids in meeting the challenges posed by environment.

The implementation of organization strategy involves the application of the management process to obtain the desired results. Particularly, strategy implementation includes designing the organization’s structure, allocating resources, developing information and decision process, and managing human resources, including such areas as the reward system, approaches to leadership, and staffing.

 

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