"Strategy is a master plan of action that prioritizes strategic objectives, resources, and a sequence of steps to achieve goals."
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A strategy is a long-term direction, defined qualitatively, in relation to the means and forms of its activity.
Types of strategies:
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- Concentrated growth strategies:
A strategy to strengthen market positions, a market development strategy, a product development strategy.
- Integrated growth strategies:
Reverse vertical integration strategy, progressive vertical integration strategy.
- Diversification growth strategies:
A focused diversification strategy, a horizontal diversification strategy.
- Reduction strategies:
Eradication strategy, harvest strategy, reduction strategy, cost reduction strategy.
In essence, a strategy is a set of decision-making rules by which an organization is guided in its activities. It includes general principles on the basis of which the managers of a given organization can make interrelated decisions designed to ensure the coordinated and orderly achievement of long-term goals.
There are four different sets of rules:
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The rules that are used to evaluate the performance of the company in the present and in the future.
The rules by which the relationship of a company with its external environment is formed, determining what type of products and technologies it will develop, where and to whom it will sell its products, how to achieve superiority over its competitors. This set of rules is called a product marketing strategy or business strategy.
The rules by which relationships and procedures are established within an organization. They are often referred to as an organizational concept.
The rules by which a company conducts its daily activities are called basic operating procedures.
If a company wants to be successful then strategies must be applied so that those responsible can carry out their tasks in the best possible way and be effective, this is what strategic management is based on.