Although the word strategy was derived from the ancient Greece word Strategos that was used to refer to the process of devising a strategy to win a fight, corporate or business strategy refers to the long-term direction and scope of an organization’s activities. It assists an organization in gaining a competitive edge over its rivals by ensuring that resources are used efficiently. Also, strategy guarantees that the demands of the market are met, as well as the expectations of all stakeholders.
A strategy should provide an organization’s plan of action that is used to attain short-term, medium-term, and long-term objectives. An effective strategy is always the result of a comprehensive examination of the company’s position in the marketplace. This is the stage during which a company’s strengths and weaknesses, as well as opportunities and threats, are taken into consideration. The first step in strategy is defining the corporate strategic objectives of the whole organization. The second step requires the business strategic objectives that are responsible for establishing the strategic objectives of a business unit. The third and final step is to define the functional strategies that are concerned with the strategic goals that must be achieved in order to fulfill the company objectives as well as the development of the functional areas. To define the future course of an organization, they must set their goals and objectives.