Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. What are the Characteristics of a Good Strategy? An actual strategy, in contrast, as a longer-term plan that set the direction and tone of the shorter- range plan. Strategy formulation must be based on highly aggregated, incomplete and uncertain information about classes of alternatives (at the time of strategy formulation it is no possible to enumerate all the project possibilities which will be uncovered). When incorporating the deceiving element the care should be drawn not to go beyond the limits and cheat people in unethical manner. A typical hierarchical relationship results: elements of strategy at a higher managerial level become objectives at a lower one. The strategy should be able to break even and recover the investment/cost incurred. Characteristics that leaders exhibit during this step in the strategic process include strong analytical skills, as well as the ability to synthesize and present data. Characteristics Of Strategy. This set of ideas places some limits on the sweeping task just sketched as the role of strategy. Therefore a manager needs to know the characteristics of a good strategy. They … 4. Characteristics of a good strategy are summarized below: Strategy should be a outcome of innovative and creative thinking. Organizational decisions can be arrayed on a continuum, with strategic decisions at one end and tactical decisions at the other. It is an essential management process to strategize and prepare for different odds. Six characteristics of successful strategic plans Published on January 22, 2016 January 22, 2016 • 44 Likes • 10 Comments. Creating Strategy Formulating strategy can only begin once the leadership team has a good understanding of what strategic management entails. Strategy in the simple sense of the word is a plan designed to achieve an objective and planning as we all know is the primary function of management that lays down the base for the entire business. Organizational decisions can be arrayed on a continuum, with strategic decisions at one end and tactical decisions at the other. All Rights Reserved. 2. Requirement of large amounts of resources … A strategy has several distinguishing characteristics: Moreover, stating what strategy is not helps to remove unnecessary confusion: Above all, strategy is an expensive process both in terms of money and managerial time. Strategic decisions have major resource … Strategy is not response to short-term fluctuations in operations or the environment, nor is it the response to the frequent short-term reports on, for example, sales, labor turnover, weekly output, or competitors' prices that every manager receives. It is generally long range in nature, though it is valid for short-range situations. If the strategy does not include any novel aspect in it there is a high tendency that competitors will be already having detailed knowledge about the strategy employed. However, they are distinct. Strategy should involve a an element of the deceive and should be able to cheat the target audience in an ethical manner. Strategy is a unified, comprehensive and integrated plan of action. Tactics, are specific actions the organization might undertake in carrying out its strategy. If the strategy fails to obtain this characteristic it will not be a strategy as only the smart strategies will be able to achieve desired objectives. Characteristics of Strategy A strategy is characterized by various features which have been presented as follows. What is Strategic Management? Characteristics of Strategic Management. Top management involvement. It should guide their decisions and actions. “the determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the … Strategy results from the detailed strategic planning process”. This set of ideas places some limits on the sweeping task just sketched as the role of strategy. In general, a corporate strategy has the following characteristics: 1. Characteristics Of Strategy A second way to define strategy is in primary characteristics. Characteristics of strategy • The decision is concerned with or effects the long term direction of an organization. Successful use of strategy requires strategic feedback. It … Objectives represent the ends which the firm is seeking to attain, while the strategy is the means to these ends. Internal capability, realistic goals, transparency. Instead, a strategy must identify ways by which at least some form of superiority over competitors is to be achieved. An … Strategy and objectives are interchangeable; both at different points in time and at different levels of organization. © 2009-2016 Tutebox. A second way to define strategy is in primary characteristics. This set of ideas places some limits on the sweeping task just sketched as the role of strategy. Rather, the emphasis in strategy is on the quality and texture of the business. Note of Credits : This is article is based on a lecture done by Mr. Marlon Gunasekara at APIIT-Sri Lanka on Strategic Management on 14/12/2010. It is not merely a good idea; it is making that idea happen too. It should include a new/novel area which were not practices before. Strategic management relates to several areas of a firm’s operations. Managers are responsible of making the strategy for the organization and they wish to make good strategies as the outcome of the strategic planning process of the business. He offers some characteristics every strategy should include. Strategy is not a statement of pious intentions or optimistic wishes. What are the Basic Functions of a Manager? Strategy is an action that managers take to attain one or more of the organization’s goals. Managers are responsible of making the strategy for the organization and they wish to make good strategies as the outcome of the strategic planning process of the business. Therefore strategy should include a novel/creative aspect into to make it unique and differentiate from competitors. Strategy should involve some confidential element in it which should only be known to the management of the organization. Generally, only the top management has the perspective needed to understand the broad implications of its decisions and the power to authorise the necessary resource allocations. A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the … The process of strategy formulation results in no immediate action. Therefore a manager needs to know the characteristics of a good strategy. What are the Benefits of Strategic Management? When conducting research for internal and external analysis, it is important to remain unbiased. When developing the strategy it is considered to be a confidential activity where the management team has to keep the business secrets and should not reveal. Strategy is not a rationalization of what we did last year or of what appears in next year's budget. “Strategic management in essence is a fancy name given to the … In other words, benefits received by the organization by executing the strategy has to be higher than the cost incurred in executing the strategy. Strategy is a systematic phenomenon: Strategy involves a series of action plans, no way contradictory to each other because a common theme runs across them. Organizational decisions can be arrayed on a continuum, with strategic decisions at one end and tactical decisions at the other. It should guide their decisions and actions. People often get a strategy mixed up with a tactic. However, if you remain biased, you only see information from your perspective, which defeats the purpose of your analysis. Strategy should be design in a clever and smart manner. The secret element of the strategy will always keep the competitors curious about the strategy. The goals and objectives of an organization are established through strategic decisions. Long-term direction of the business is a crucial part of strategic decisions. Rather, the concepts are disseminated and understood by all managers to at least the middle levels of the organization and perhaps below. A second way to define strategy is in primary characteristics. Key Characteristics of Enterprise Strategy Objective Analysis. The goals and objectives of an organization are established through strategic decisions. Long range Strategy is generally long range in nature though it is valid for short range as well. Strategy is not a cluster of ideas in the minds of a few select leaders of the company - ideas labelled strategy if and when they are voiced because they come from key individuals. … “Strategies define goals to be achieved while tactics define the actions you’ll take to achieve those goals,” says James. Advantages and Disadvantages of Viral Marketing, A Quick Guide to Least Squares Regression Method, Introduction to Market Segmentation and Segment Bounding, Infinity Blade 2 : Skycages – Defeat Ryth [Revenge Achievement], Temple Run 2 Tips & Tricks [Bonus: 100 Million High score/ 57X game profile], Infinity Blade 2 : Skycages [Treasure Maps], Infinity Blade 2 : Skycages [Quick Review], Infinity Blade II: Skycages [Weapon List]. When you consider all facts, comments, and data, you are able to take all the information into perspective.

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