What Is Strategy?

Strategy is the planning of long-range goals and actions to attain those goals. Initiatives, objectives, and tactics are outlined in detail for each specific function in the organization and coordinated over a defined period of time. The strategy will look within the walls of the organization at its strengths, weaknesses, and vulnerabilities, along with looking outward at the competition, opportunities, and external issues and influences.

Some theorists believe that strategy emerges in response to environmental threats and opportunities and cannot be planned rationally—because no one person can foresee everything about the future. Theorist Henry Mintzberg associated with this strategic
approach. Others believe that the gathering of data is its core source for setting and choosing direction—much like a control system that would have targets. Michael Porter’s perspective of the five forces in planning is aligned with this process.

Both concepts and processes have value. Strategic planning is necessary to set the direction and path for an organization and the management of strategy (strategic management) is required in the leadership of the organization to ensure that functions in the organization are aligning their activities to help move the organization toward its goals and strategic plans.