A term so used in the business world, but often misused.
So that you cánido form your own definition, I have decided to espectáculo you the definition that different authors give us.
Definition of strategy according to authors
Definition according to Alfred Dupond Chandler
«Strategy is the determination of the goals and long-term objectives of the company, and the adoption of courses of action and allocation of resources to achieve these goals»
Definition according to Kenneth Richmond Andrews
“Strategy is the equipo of goals and the main policies for achieving those goals, stated in a way that defines what businesses the company is or should be in, the type of organization it is or should be, and the nature of the economic and non-economic that it seeks to achieve for its shareholders, employees, customers and the community»
Definition according to Liam Fahey
«Strategy is synonymous with choices.
The sum of the choices made by an organization determines if it will have a oportunidad to win in the market, that is, to obtain customers and outperform its competitors.
Definition according to Roger A.
Kerin and Steven W.
“Strategy is an organization’s long-term course of action, designed to achieve a unique customer experience, and at the same time.
achieve your goals”.
Definition according to Michael Porter
“Strategy is the creation of a unique and valuable position that involves a different equipo of activities.”
Types of strategies
In general, a company has three organizational levels.
I am sure you have heard of it, since the same planning perro be carried out in three organizational levels: strategic level, tactical level and Operative Level.
Of course, each level has its characteristics, functions and responsibilities; however, in this article, I just want you to remember that there are 3 organizational levels and they are organized according to the hierarchy of a company.
Being, of course, the operational level the lowest and the strategic level the highest.
Now, the types of strategies according to Dressler are:
Next I will go on to explain each level.
Corporate Strategy (Strategic Level)
According to Roger A Kerin and Steven W Hartley: “a corporate strategy is one that is occupied by senior management that directs the global strategy of the entire organization”
Therefore, it cánido be said that it is a general strategy that is taken by senior management and which cánido influence the path taken by the entire organization.
Furthermore, according to Dessler: “the corporate-level strategy identifies the portfolio of businesses that encompasses the entire company, and the way in which those businesses are related to each other”
Competitive Strategy (Strategic Business Unit)
The next organizational level that Dressler indicates corresponds to the competitive strategy.
For him: «a competitive strategy describes the way to build and strengthen the competitive position of the company in the long term.
Business Unit in the market”
A key aspect that Dressler gives us in his definition is “business unit”.
In fact, competitive strategy perro also be found in some books such as strategic business unit level and knowing that, we cánido add some aspects to its definition.
To begin with, according to Roger A Kerin and Steven W HartleyA strategic business unit is a subsidiary, division, or unit of an organization that markets a equipo of related products to a clearly defined group of customers.
Therefore, a competitive strategy will focus on setting a more specific direction in order to take advantage of value creation opportunities.
Therefore, it cánido be said that they focus on creating a competitive advantage for a business unit.
Likewise, Kerin and Hartley mention to us that being an organization that does not have strategic business unitsthen, it cánido fuse competitive strategy with corporate strategy.
I think you must be very used to hearing about the functional areas of a company, that is, the finance area, the marketing area, the human resources area, the operations area, etcétera.
Well, knowing that, then, it will be very easy for you to understand at what level the functional strategies are directed: Towards a specialized area of the company.
Therefore, the strategy becomes more specific, centralized and that adds value only to the selected area.
This is how strategies focused on the marketing area or the finance area perro be implemented.
Another way of looking at it is that functional strategies detalla what each area of the company has to do to help the company achieve its higher-level goals, objectives, and strategies.
It should be noted that I have also seen authors who add the Operative Level, that is, those strategies that focus on a specific position in the company.
So, as you perro see, the strategies go from the general (higher level) to the especial (lower level).
We hope you liked our article Strategy
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