Strategy is known as a company's game plan. It is large-scale, future-oriented plan for interacting with competitive environment to achieve objectives. Characteristics of strategy are as follows;
- Framework for managerial decisions.
It shows direction and scope of an organization over the long term. It matches company's resources to its changing environment in particular its markets, customers or clients, so as to meet stakeholders’ expectations.
- Large-scale future-oriented plan.
Strategy is a broader plan. It involves corporate vision and mission to be taken into action in future. It defines what business to be in, and what needs to meet for perpetual succession of business operation.
- Interacts within competitive environment.
Strategy is formulated to win the business competition; however, organization has chance of losing it sometime. Strategy becomes more attentive when the competitors aggressively play to exploit the resources for their own benefit.
- Used to achieve company goals.
Strategy determines organizational goals. It consists of analytical framework to drive the entire organization to ward goal succession. Various ideas, techniques, policies and concept are visualized at the time of strategy development.
- Reflects a company’s awareness
Strategy reflects a company's understanding on the main elements of competition. It is a precaution taken by the company to tackle the environmental dynamism. Strategy stands as the guideline to people in their action to be taken in the company's operation.