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The Value of Management Strategy

Good Essays
‘’A company’s strategy is managements game plan for growing the business, stacking out a market position, attracting and pleasing customers, competing successfully, conducting operations and achieving targeted objectives’’ (Thompson, Strickland & Gamble 2008). Porter (1996) states strategy as choosing different set of activities to deliver a unique mix of value. Markides (1999) states strategy as a position a company takes to answer certain questions about the organization. Strategy can be viewed as a way to which the organization achieve its competitive advantage. Competitive advantage is the way in which the organization meet consumer needs better than their rivals. Strategy is used in decision making in which managers monitor the ever changing external environment, in which an effective strategy would allow the organization to use resources and capabilities to exploit opportunities and limit threats (Ireland & Hitt 1999). Strategy therefore can be defined in a number of ways. Strategies are devised to achieve certain goals. A company may seek a strategy to identify who are the customers, which services to offer and how they can operate efficiently.
Strategy entails an organization matches its resources and capabilities to the external environment to achieve competitive advantage (Lado & Wilson 1994). Organizations set goals to achieve. The organization will therefore analyse the problems which the firm face, and then formulate a strategy and implement it to achieve competitive advantage.
Strategic making process therefore:
1. Set a corporate vision, mission and values and the organisation goals and objectives.
2. Analyse the external environment
3. Analyse the organization internal environment
4. Select strategies that help th...

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...an be achieved by product performance, marketing as profits may fall. Therefore a company may seek to formulate and execute a strategy that addresses how to deal with new entrants, suppliers, their customers– how best to serve them and to deal with substitutes for example providing comfort in low budget vehicles to serve the need for customers who need low maintenance vehicles but seeking luxury at the same point (Porter 2008).

CONCLUSION
Strategy is pivotal to the success of the business. It encourages the organisation matches its resources and capabilities to the external environment to achieve competitive advantage. Luck can make a business successful but a business strategy can provide a guide line to follow to achieve competitive advantage. One can safely say that strategy rather than luck is important to the future running of the business
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