Strategy can be defined as how an organization creates and captures value in a specific market. This definition is both sufficiently precise to have substantive content yet inclusive enough to capture what most people feel should be part of so critical a concept. The most significant element of this definition lies in the most easily overlooked part, strategy is about how to create and capture value. This highlights the importance of defining clearly the organization and product market that are the focus of the strategy.
Strategy can be described as having 4 P’s. Strategy is a plan, it can be described as a direction, a guide or course of action into the future, a path to get from here to ...view middle of the document...
As mentioned in the article, “What is Strategy?” a company can outperform rivals only if it can establish a difference that it can preserve. Looking at the SWOT along with the company’s competitors can help craft a strategy that can help them to distinguish themselves from the competition and help them to compete successfully in the market.
Strategy formation as a formal process is the central message of the planning. It is tied to the trend in management education and big business. The formal strategy process includes a company coming up with a mission/vision statement for the organization. This statement helps to describe where the company is headed it acts as a guide for the pursuit of future opportunities, this including unchanging values and purposes of the company. This process allows firms leaders to identify financial and strategic objectives that are measureable.
Strategy formation as an analytical process opens up the prescriptive side of the field to substantial investigation by focusing on the content of strategies. As positions in the economic marketplace - are desirable in any given industry: ones that can be defended against existing and future competitors. A pro-active analytical investigation needs to take place to help prevent purposeful and accidental wrongdoing. Investigating other company strategies helps to learn from their mistakes. As mentioned in the article, “Is Your Growth Strategy Flying Blind” by looking microscopically at their markets and their current performance relative to rivals’, companies can develop far better growth strategies (Baghai, Smit & Viguerie, 2007).
Strategy formation as a visionary process seeks to understand the process formation as it unfolds. Not only has the strategy formation process focused exclusively on the single leader, but it has also stressed the most innate of mental states and processes including intuition, judgment, wisdom, experience, and insight. Leaders who are able to identify and mange their emotions are able to make better decisions when creating a strategy. It is said that good leaders are able to use their personal knowledge along with their gut instinct to make good decisions.
Strategy formation as a mental process is about understanding strategic vision as well as how strategies form under other circumstances. That is the job of the cognitive to understand what this process means in the sphere of human cognition, drawing especially on the field of cognitive psychology. The cognitive strategies that leaders use will influence how the company will perform inside and outside of the organization. This mental process includes knowing what drives the success of the organization. Not using the mental process when creating strategy can cause a trap that effects the decision making process.
Strategy formation as an emergent process suggests that strategists learn over time. This topic mentions that strategies emerge as people, sometimes acting individually but more often...