Business Planning Strategy Defined - dummies

By Erica Olsen

Strategy means consciously choosing to be clear about your company’s direction in relation to what’s happening in the dynamic environment. With this knowledge, you’re in a much better position to respond proactively to the changing environment.

The fine points of strategy are as follows:

  • Establishes unique value proposition compared to your competitors

  • Executed through operations that provide different and tailored value to customers

  • Identifies clear tradeoffs and clarifies what not to do

  • Focuses on activities that fit together and reinforce each other

  • Drives continual improvement within the organization and moves it toward its vision

Knowing what strategy is can also be explained by looking at what strategy isn’t. Dr. Michael Porter, the leading strategy guru and professor at Harvard University, says strategy isn’t the following:

  • Agility

  • Alliances/Partnering

  • Aspirations

  • Best practice improvement

  • Downsizing

  • Execution

  • Flexibility

  • Innovation

  • The Internet (or any technology)

  • Learning

  • Mergers/Consolidation

  • Outsourcing

  • Restructuring

  • A vision