STRATEGY

 Strategy is a tactical course of action which is designed to achieve long-term objectives. It is

an art and science of planning and marshalling resources for their most efficient and
effective use in a changing environment.
 Strategy is the game plan of management.
 Strategy is a large-scale, future-oriented plans for interacting with the competitive
environment to achieve company objectives.

STRATEGIC MANAGEMENT is defined as the set of decisions and actions that result in the
formulation and implementation of plans designed to achieve a company’s objectives.

9 Critical Tasks of Strategic Management

1. Formulate the company’s vision, mission and goals.
2. Conduct an internal analysis that reflects the company’s internal conditions and capabilities.
3. Assess the company’s external environment.
4. Analyse the company’s options by matching its resources with the external environment.
5. Identify the most desirable options by evaluating each option in light of the company’s
mission.
6. Select a set of long-term objectives and grand strategies that will achieve the most desirable
options.
7. Develop annual objectives and short-term strategies that are compatible with the selected
set of long-term objectives and grand strategies.
8. Implement the strategic choice by means of budgeted resource.

Dimensions of Strategic Decisions

1. Strategic Issues Require Top Management Decisions
2. Strategic issues require large amount of the firm’s resources
3. Strategic issues often affect the firm’s log-term prosperity
4. Strategic issues are future oriented
5. Strategic issues usually have multifunctional or multi-business consequences
6. Strategic issues require considering the firm’s external environment