The concept of strategy is central to understanding the process of strategic management(Kazmi 2002).Strategy is the intent and visionary plan or policy of an institution to be strong in the competitive and ever changing environment. The word strategy is derived from the Greek word strategos which meant a generalship- the actual direction of military force. So strategy consists of direction of the institution which encompasses vision, mission, plan and policy regarding business scope, clients to be served, caution to be taken in the competitive market.
Strategy in the organization links its means and ends. It defines what the organization wants to become and build in the longer term. So, organizational strategy is formulated by the executive who has mandate and capability both to drive the organization, not compromising the action for the achievement of the organization's intent.
Academic discussion on the term strategy has not gained the long history, however credit goes to military project for commencing the practice of strategy as substitute of plan. Strategy in spite of plan is emerged to sustain, develop and expand the business operation in dynamic and diversified business environment. So, strategies are practice driven. Scholars on this topic have different views to define the term strategy. Let us see some definitions of strategy.
"An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage."- Hitt,Michael, Ireland and Hoskisson 2002.
"A unified, comprehensive and integrated plan designed to assure that the basic objective of the enterprise are achieved."- W Glueck 2002.
"Large-scale, future-oriented plans for interacting with the competitive environment to optimize achievement of organization objectives."- Pear, John and Robison 1996.
"Direction and scope of an organization over the long-term which achieves advantage for the organization through its configuration of resources within a changing environment and to fulfill stakeholder expectation"- Gerry and Kevan 2002.
" The pattern of objectives, purpose, goals and major purpose and plans for achieving these goals stated in such a ways so as to define what the company is in or to be and the kind of company it is or is to be"- Kenneth Andrews.
Thus, strategy is made to win the competition by optimization of resource utilization as environment changes.
According to Chandler, "Strategy can be defined as the determination of basic long term goals and objective of an enterprise and the adoption of course of action and the allocation of resources for carrying out these goals." Strategy is made not only in business organization; it is made in all type of organizations where the rational linkage of goals with resource capability is essential to serve the stakeholders in optimum level. According to Ansoff strategy consists of policy, plan and objective regarding following four components:
- Product-market scope
- Growth vector
- Competitive advantage