What leads to us to success or failure, if you ask this question to maximum numbers of the people they all will say, may be plan didn’t work properly. Common man will say plan however if someone from the business world they won’t say plan they will say Strategy.
Strategy play an important role in whatever work you are going to start and how you are implementing the strategy is also very important. Let’s take a deep dive into the world of strategy.
What is Strategy?
If you ask someone what is strategy they will say planning it’s a very layman meaning of the strategy. In other words we can say that, a level planning to achieve one or more than one goals under the condition of uncertainty.
Strategy is a Roam terminology which was used in 6th Century CE. We need to achieve the goals with fewer resources and we have to achieve it in the shortest possible time then strategy comes in picture. Strategy involves many things such as
- · Setting goals
- · Steps to achieve the goals
- · Use of resources to achieve the goal
Any business leaders and business gurus studied a lot about strategy but there is specific definition what is strategy? Some organization thinks that predict the future and make the strategy for the future and some says future is uncertain so make the changes in strategy for the present, both theories might be right and might work or might not work. Strategy is full proof plan for the growth of the organization, which includes mission, vision and direction of the company. In a nutshell we can say that strategy is all about how to achieve the organizational goals.
What is Strategic Management
When you have a solid strategy for the growth of the organization or to achieve the organizational goals and how to implement those strategy is nothing but the strategic management. So if someone asks you what is strategic management you can say that how to implement the strategy is strategic management.
Why Strategy is Important
Strategy is very important as it helps in moving the organization in an effective way. A well planned strategy is always good for the organization; let’s take a look why strategy is important
- · Competitive Advantage
Strategy gives you competitive advantage in the market and you will overtake your competitors in the market as you have the full planned strategy, with the help of strategy you will always know where you stand and where you will be in future.
You can easily overtake the competitors as you know your strength, weakness, vision and mission which help you in moving up in the ladder of the success. A good strategy always helps you in knowing what working and what’s not working for you.
- · Long term Planning
Business doesn’t grown in day or over the night its takes long time to grow the business, if you have a strategy for long term than you become more creative and try to innovate new thing in the business to get the desire growth. Long term strategy makes you work to the specific goal in an effective way and you are always on your toes for the same.
Long term strategy helps you to make the visionary and you can see where you organization will be after the specific time and in between you can add or remove something which is work and which is not working to achieve the optimal growth.
- · Strength and Weakness
When we plan our strategy we always consider your strength and weakness and then we make the strategy effectively. We know what is our strength and we focus more on that and make the strategy according to that and due to it we know how to maximum utilize our strength.
In t he same way to consider our weakness while preparing the strategy as we always try to convert our weakness into strength and wait for the time when our weakness starts diminishing.
- · Helps in Product and New Market
When we are launching new product or trying to make the changes in the existing product our strategy comes in picture, strategy always help in understanding how much to spend on marketing of the new product and how much we have to spend in making the changes in t he existing product as per the need.
When we try to enter in the new market we must have a strategy which helps us in understanding what we have to do and what not to get established in the market. Strategy always help in understating the market better and makes aware how to become the leader in the market and how to maintain the top position.
- · Gap Analysis
When running business there are many gas which hampers the company in many ways, to overcome these gaps we need the strategy and this helps in covering the gaps such as communication gap whit the customers, service gap and expectation gaps however all such gaps will be covered with an effective strategy and that helps us in growing in an effective way.
Gap analysis is always the part of strategy as this helps in understating were the organization in lacking in and what are the ways to fill those gaps which are coming time by time.
- · Maximum Utilization of the Resources
Resources plays an important role I n the business and we must have an effective strategy to manage the resources properly. Strategy always tells us how to do the maximum utilization of the resources, there might be some resources which are giving the expected result so that we now e have to change or replace them and there comes to strategy. Resources can be anything people, machinery if they are now giving results we must have a strategy where to use them for the maximum utilization.
Types of Strategy
If we talk about the types of strategy then there will be four types of strategy, let’s take a look into that
- · Business Strategy
Business strategy is when we create the strategy considering the each and every unit of the business; this can also be called as business-unit strategy. This helps us in become more competitive in terms of products and services.
- · Competitive Strategy
This in of strategy helps us in getting the competitive advantages in terms of the competitors, companies prepare competitive strategy considering the external situation of the company like how the product and services are performing in the market and how we are getting in touch with customers and how deliveries are taking place. If we manage all motioned things then we will get the competitive advantage in the market and chances are we can go ahead from our competition.
- · Corporate Strategy
This kind of strategy is created by the group of the companies, this kind of strategy is r=the best for the group which is very diversified in the business and they prepare the strategy not only considering the one business but consider the other businesses as well and helps in growing the group in together but not just a one business.
- · Functional Strategy
There are many departments in business and each department has specific work and each department has to work effectively for the growth of the organization. This kind of strategy is prepared on the level of each and every department, sometimes it is also known as departmental strategy.
All the department such as marketing, finance and hr department prepare their own strategy to get the expected result. Every department in the business has a different way of working so strategy is prepared in such a way that all the work on departmental level leads to the growth of the organization.
Strategy plays an important role in the overall growth of the organization and helps in reaching on the top of the ladder of the success. Strategy at the different level and the different department always helps the organization to get the edge in the market and on the competitors levels.
Strategy helps us in doing business and growing business if the situation is not in our favor and effective strategy always help in overcome our organizational weakness. Strategy helps us in managing the SWOT of the company which leads to the maximum utilization of the resources to get the expected results.