ensure that they are doing the right things. These actions need to be
co-ordinated, efficiently executed and focused on meeting customer need.
Essentially, strategy is a three stage process involving analysis, formu-
lation and implementation. During the analysis phase management needs
to look both internally and externally. Understanding the wider business
environment is fundamental. It is then necessary to formulate plans appro-
priateto current and future circumstances. Finally, implementation needs
to make sure our plans are put into practice. Managers must ensure that
due care and attention are paid to each of these stages. In this way, strat-
egy avoids being little more than rhetoric and starts to become a practical
reality of business life.■ What is strategy?
Over the years, many definitions of ‘strategy’ have been developed and
close examination of such definitions tends to converge on the following –
strategy is concerned with making major decisions affecting the long-term
direction of the business. Major business decisions are by their very
nature strategic, and tend to focus on:
● Business definition: A strategic fundamental is defining the business we
are in. Organisations need to anticipate and adapt to change by keep-
ing in touch with the external competitive environment.Business leaders
need to define the scope(or range) of the organisation’s activities and
determine the markets in which the organisation will compete. We are
defining the boundaries of activity and ensuring management face up
to the challenges of change.
● Core competencies: The organisation must be competitive now and in the
future. Therefore, strategic decisions need to define the basis of sustain-
able competitive advantage(s). What skills and resources are needed in
order to prosper within our defined markets and how can they be used
to optimum advantage? It is essential that this is considered over the
long-term and aims to matchorganisational capability with desired goals
and the external environment. This process often has major resource impli-
cations, both in terms of investment and rationalisation.
● Integrative: Strategy has a wide ranging impact and therefore affects all
functional areas within the organisation. Effective strategy is able to
co-ordinatethe different functions/activities within the organisation in
order to achieve common goals. By taking a ‘whole-organisation’s’
view of the corporation, managers should be better able to target
resources, eliminate waste and generate synergy. Synergyoccurs when
the combined effect of functions/activities is greater than their indi-
vidual contribution. It is vital that business leaders articulate a com-
mon visionand sense of purpose, in order to achieve an integrative
approach.
● Consistency of approach: Strategy should provide a consistency of
approach, and offer a focus to the organisation. Tactical activities may
change and be adapted readily in response to market conditions, but
strategic direction should remain constant. Additionally, strategic4 Strategic Marketing: Planning and Control