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...
... middle of paper ...
...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).
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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