1. Definition of Strategy
• According to Glueck, "Strategy is the
unified, comprehensive and integrated plan that relates
the strategic advantage of the firm to the challenges of
the environment and is designed to ensure that basic
objectives of the enterprise are achieved through proper
implementation process.“ This definition of strategy lays
stress on the following:
• Unified comprehensive and integrated plan.
• Strategic advantage related to challenges of
environment.
• Proper implementation ensuring achievement of basic
objectives.

2. Definition of Strategy
Another definition of strategy is given below which also
relates strategy to its environment.
• " Strategy is organization's pattern of response to its
environment over a period of time to achieve its goals
and mission."
This definition lays stress on the following:
• It is organizations pattern of response to its environment.
• The objective is to achieve its goals and mission.

3. Nature of Strategy
• Strategy is a major course of action through which an
organization relates itself to its environment particularly
the external factors to facilitate all actions involved in
meeting the objectives of the organization.
• Strategy is the blend of internal and external factors. To
meet the opportunities and threats provided by the
external factors, internal factors are matched with
• Strategy is the combination of actions aimed to meet a
particular condition, to solve certain problems or to
achieve a desirable end. The actions are different for
different situations.

4. Nature of Strategy
• Due to its dependence on environmental variables, strategy
may involve a contradictory action. An organization may take
contradictory actions either simultaneously or with a gap of
time. For example, a firm is engaged in closing down of some
of its business and at the same time expanding some.
• Strategy is future oriented. Strategic actions are required for
new situations which have not arisen before in the past.
• Strategy requires some systems and norms for its efficient
adoption in any organization.
• Strategy provides overall framework for guiding enterprise
thinking and action

5. Conclusion
• The purpose of strategy is to determine and
communicate a picture of enterprise through
a system of major objectives and policies.
• Strategy is concerned with a unified direction
and efficient allocation of an organization's
resources.
• A well made strategy guides managerial action
and thought. It provides an integrated
approach for the organization and aids in
meeting the challenges posed by environment

6. Strategy v/s Policies
Strategy has often been used as a synonym of policy.
However, both are different and should not be used
interchangeably.
Policy
• Policy is the guideline for decisions and actions on the
part of subordinates.
• It is a general statement of understanding made for
achievement of objectives.
• Policies are statements or a commonly accepted
understanding of decision making.
• They are thought oriented.
• Power is delegated to the subordinates for
implementation of policies.

7. Strategy v/s Policies
• In general terms, policy is concerned with course of
action chosen for the fulfillment of the set objectives.
• It is an overall guide that governs and controls
managerial actions.
• Policies may be general or specific, organizational or
functional, written or implied.
• They should be clear and consistent.
• Policies have to be integrated so that strategy is
implemented successfully and effectively.

8. Strategy v/s Policies
• For example, when the performance of two employees is
similar, the promotion policy may require the promotion
of the senior employee and hence lie would be eligible
for promotion.
Strategy
• Strategies on the other hand are concerned with the
direction in which human and physical resources are
deployed and applied in order to maximize the chances
of achieving organizational objectives in the face of
environmental variable.
• Strategies are specific action suggested to achieve the
objectives.

9. Strategy v/s Policies
• Strategies are action oriented and everyone in the
organization is empowered to implement them. Strategy
cannot be delegated downward because it may require
last minute decisions.
Strategies and polices both are the means towards the
end. In other words, both are directed towards meeting
organizational objectives. Strategy is a rule for making
decision while policy is contingent decision

10. Strategy v/s Tactics
• Strategy determines the major plans to be undertaken while
tactics is the means by which previously determined plans are
executed.
• The basic goal of strategy according to military science is to
break the will of the army, deprive the enemy of the means to
fight, occupy his territory, destroy or obtain control of his
resources or make him surrender. The goal of tactics is to
achieve success in a given action and this forms one part of a
group of related military action.
• Tactics decisions can be delegated to all the levels of an
organization while strategic decisions cannot be delegated too
low in the organization. The authority is not delegated below the
levels than those which possess the perspective required for
taking decisions effectively.

11. Strategy v/s Tactics
• Strategy is formulated in both a continuous as well as irregular
manner. The decisions are taken on the basis of opportunities, new
ideas etc. Tactics is determined on a periodic basis by various
organizations. A fixed time table may be made for following tactics.
• Strategy has a long term perspective and occasionally it may have a
short term duration. Thus, the time horizon in terms of strategy is
flexible but in case of tactics, it is short run and definite.
• The decisions taken as part of strategy formulation and
implementation have a high element of uncertainty and are taken
under the conditions of partial ignorance. In contrast tactical
decisions are more certain as they work upon the framework set by
the strategy. So the evaluation of strategy is difficult than the
evaluation of tactics.

12. Strategy v/s Tactics
• Since an attempt is made in strategy to relate the organization
with its environment, the requirement of information is more
than that required in tactics. Tactics use information available
internally in an organization.
• The formulation of strategy is affected considerably by the
personal values of the person involved in the process but the
same is not the case in tactics implementation.
• Strategies are the most important factor of organization
because they decide the future course of action for
organization as a whole. On the other hand tactics are of less
importance because they are concerned with specific part of
the organization.

13. Approaches to Strategic Decision Making
• The Chief Architect approach A single person –
the owner or CEO –assumes the role of chief strategist
and chief entrepreneur, single handedly shaping most
or all of the major pieces of strategy. This does not
mean that one person is the originator of all the ideas
underlying the resulting strategy or does all the
background data gathering and analysis: there may be
much brainstorming with subordinates and
considerable analysis by specific departments.
• Michael Dell at Dell Computer, Bill Gates at Microsoft
etc are prominent examples of corporate CEOs who
exert a heavy hand in shaping their company’s strategy

14. Approaches to Strategic Decision Making
• The Delegation Approach:
Here the manager in charge delegates big chunks
of the strategy-making task to trusted
subordinates, down-the-line managers in charge
of key business units and departments, a high-
level task force of knowledgeable and talented
people from many parts of the company, self-
directed work teams with authority over a
particular process or function, or, more rarely, a
team of consultants brought in specifically to help
develop new strategic initiatives.

15. Approaches to Strategic Decision Making
• The Collaborative or Team Approach:
This is a middle approach when by a manager
with strategy-making responsibility enlists the
assistance and advice of key peers and
subordinates in hammering out a consensus
strategy. Strategy teams often include line and
staff managers from different disciplines and
departmental units, a few handpicked junior
staffers known for their ability to think
creatively, and near-retirement veterans noted
for being keen observers, telling it like it is, and
giving sage advice.

16. Approaches to Strategic Decision Making
• The Corporate Intrapreneur Approach:
In the corporate intrapreneur approach, top
management encourages individuals and teams to
develop and campaign proposals for new product lines
and new business ventures. The idea is to unleash the
talents and energies of promising corporate
intrapreneurs, letting them try out business ideas and
pursue new strategic initiatives. Executives serve as
judges of which proposals merit support, give company
intrapreneurs the needed organizational and budgetary
support, and let them run with the ball.

17. Levels of strategy
• Corporate strategy –
Which describes a company’s overall direction
towards growth by managing business and
product lines? These include stability, growth
and retrenchment.
For example, Coco cola, Inc., has followed the
growth strategy by acquisition. It has acquired
local bottling units to emerge as the market
leader.

18. Levels of strategy
• Business strategy –
Usually occurs at business unit or product level
emphasizing the improvement of competitive position
of a firm’s products or services in an industry or market
segment served by that business unit. Business
strategy falls in the in the realm of corporate strategy.
For example, Apple Computers uses a differentiation
competitive strategy that emphasizes innovative
product with creative design. In contrast, ANZ
Grindlays merged with Standard Chartered Bank to
emerge competitively.

19. Levels of strategy
• Functional strategy –
It is the approach taken by a functional area to
achieve corporate and business unit objectives
and strategies by maximizing resource
productivity. It is concerned with developing and
nurturing a distinctive competence to provide the
firm with a competitive advantage.
For example, Procter and Gamble spends huge
amounts on advertising to create customer
demand.

20. Levels of strategy
• Operating strategy –
These are concerned with how the
component parts of an organization deliver
effectively the corporate, business and
functional -level strategies in terms of
resources, processes and people. They are at
departmental level and set periodic short-
term targets for accomplishment.

21. Hierarchy of strategy

22. Levels at which strategy operates
Functional
Business
Corporate Corporate
Office
SBU A
Finance Marketing
SBU B
HRM