Strategy is originally long-term action plan to win a war. In competition
among corporations, the definition of strategy is generally as follows.
"Strategy is a series of policy to build up the structure to continually
fulfill the purpose of a corporation or a business by strong competitiveness."
Then, strategy is to make a kind of system to achieve company goal, which cannot be imitated easily by competitors and can be continued over the long term.
Positioning of Strategy in a corporation
Positioning of Strategy in a corporation is shown as follows.
KSF is abbreviation of Key Success Factor and has two meanings. One is
rules of competition and another one is how a company wins in an industry.
Former one is led by external environment analysis and latter one is led
by internal environment analysis. If both are not close, the company will
have to consider quitting the business.
Strategic alternative plan
There are many criteria to estimate strategic alternative plans, for exapmles;
How much return is it?
How long do we need to achieve it?
How much is possibility to fulfill it?
Consistency between the strategy and company's culture or other strategies
How much is risk?
Normally, a company cannot fulfill all criteria, which means a criterion is trade-off relationship to another criterion. Therefore, the company has to make a decision on which is important and which should be neglected. This kind of decision sometimes is affected by characteristics of top management.