Strategies

Strategy is a plan of action designed to achieve a long-term aim. It focuses on determining what to do and why, linking objectives to available resources and external conditions. A strategy differs from a tactic in that strategy provides the overall approach and governing principles, while tactics are the concrete actions used to implement it.

Strategies can be found in many domains, including military, business, politics, sports, and personal life. Common types include corporate strategy (allocation of resources across the organization to create value), business-level strategies (cost leadership, differentiation, or focus), and competitive strategy (how to position against rivals). Operational and functional strategies translate strategic goals into specific departments and processes.

Key elements of strategy include objectives, the external environment, internal capabilities, critical choices, and risk management. The strategic process typically consists of formulation (assessing the situation, setting goals, selecting courses of action), implementation (allocating resources and aligning activities), and evaluation (measuring performance and adjusting as needed). Tools such as SWOT analysis, scenario planning, and frameworks like Porter’s Five Forces aid analysis, while decision theories help with uncertainty.

Effective strategies anticipate changes, prefer options that maintain flexibility, and seek to align incentives and capabilities. Common examples include diversification, market entry, cost leadership, and strategic partnerships. In practice, strategy is an ongoing, iterative activity that evolves with new information and outcomes.