Strategy is the business term, define as the way to achieve the objectives. Objectives are derived for business mission statement, strategy is the path which lead toward achieving it. Strategy made by strategists for long term success of the business, without formal strategy its fair to say big giants can’t survive.
How Strategy is made?
As discussed above strategy are made to achieve objectives we can say objective is what and strategy is how. Strategy is restricted by some constraints includes internal factors and external factors. Internal factors involve the strength and weakness of business functional areas and external factor involve supplier,manufacturer,retailers,competitors, environment and political issues.
Strategy are made by keeping an eye on business available resources and external factors. Strategy without proper internal and external environments scanning leads towards failure.
Strategy remain constant or not?
Strategy change time to time because the only thing constant in life is word change, internal and external environment is dynamic that’s the reason there are so many up and downs in business.
Strategy for Competitive Advantage
Best strategy is always source of competitive advantage only if it is unique in nature. Strategy remain unique for limited period of time because competitors watchers determine strategy after some time and replicate same to vanish competitive advantage.
Levels of strategy
Strategy can be defined at three levels of business each one have different impact.
This is the high level strategy which impact entire strategic business units exist within corporate. This is high risky strategy normally made by investors,higher management and board of directors. Corporate strategy is normally mentioned in terms of mission statement.
This is the second level of strategy applied on functional areas of the business. The business strategy concerns about employees,products,services,gaining edge over competitors or exploiting and creating new opportunities.
This level of strategy is the lower level strategy made by the departmental heads to run the processes,operations and manage the resources.
The Key for strategy implementation success
During the strategy formulation stage presence of stakeholders is essential. If operational level employees are not involved in strategy formulation then strategy implementation will be not remain the same due to lack of knowledge and understanding.