“It is not the strongest of the species that survive nor the most intelligent, but the one most responsive to change.” - Charles Darwin
The term ‘strategy’ derives from military science and describes how a general deploys his forces in battle with the objective of achieving victory by defeating the enemy.
Business strategy describes how you require your business (deploy your resources) to compete for the attention of customers in your target markets (achieve your objectives) faced by competitors and other external factors that present threats to your business.
Strategy is a process and not an event. Every business must create a sound strategy and have it executed well. Accomplishing this, however, can remain an elusive goal for most businesses. Devising and implementing new and innovative strategies to exploit opportunities in a competitive world is daunting. As with most complex problems the solution to planning and executing strategy lies in creating a practical step–by–step methodology that breaks the problem into manageable components to be addressed in a logical sequence.
Strategy sets the direction in which the organisation will proceed, whilst tactics determine how it will proceed. The major strategic challenges for firms include how to please customers, win orders and simultaneously achieve financial objectives in an on-going basis e.g. A firm need to have a strategy to build market share. After implementation of this strategy, competitors will react and the firm will need to adapt to meet these new challenges. There is no stopping point - the competitive cycle continues.
An organisation strategy should evolve over time, and include the firm’s responses to events, learning from experience and the emergence of new information and ideas.
Successful corporate strategy must be strong enough to meet the needs of the marketplace yet flexible enough to quickly adapt when that marketplace changes.
“Your most unhappy customers are your greatest source of learning.” - Bill Gates