2.1.1 What is Strategy?

So, what is strategy? Or, better, what it is not? According to Grant (2005) “strategy is not a detailed plan or program of instructions; it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization”. Furthermore, there are four basic characteristics of a successful strategy: goals that are simple, consistent and long term; profound understanding of the competitive environment; objective appraisal of the resources; and, effective implementation.

Other definitions of strategy include:

·          “the determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals” (Chandler, 1962),

·          “the pattern of objectives, purposes, or goals and the major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is to be” (Andrews, 1971),

·          “the match an organization makes between its internal resources and skills … and the opportunities and risks created by its external environment” (Hofer and Schendel, 1978),

·          “the pattern or plan that integrates an organization’s major goals, policies and action sequence into a cohesive whole” (Quinn, 1980).

To simplify things we could say that strategy is when a firm assesses its internal organization and external environment, sets its goals and objectives, and designs the action plan to accomplish them.