What is Organizational Strategy?
"Strategy is the determination of the long-term purpose and objectives of an enterprise and the adoption of courses of action and allocation of resources necessary for carrying out these goals."It gives the organization clarity in direction of activities, enhances the organizational effectiveness, and most importantly serves as an operational planning framework.
It also facilitates decision making, allocation of resources, improves communication, and enables comparison of alternate plans/actions resulting in the accomplishment of goals.
There are 3 levels of strategy:
- Corporate Strategy
- Business Strategy
- Functional Strategy
Formulation of Strategy starts with the determination of organizational mission and objectives, followed by Environmental and Corporate Analysis, then identification of alternatives and evaluation of them, and lastly selection of the best alternative and best strategy.