Concept of Corporate Strategy

What is strategy?
Strategy”, narrowly defined, means “the art of the general” (the Greek stratos, meaning
‘field, spread out as in ‘structure’; and agos, meaning ‘leader’). The term first gained currency
at the end of the 18th century, and had to do with stratagems by which a general sought to
deceive an enemy, with plans the general made for a campaign, and with the way the general
moved and disposed his forces in war. Also was the first to focus on the fact that strategy of war
was a means to enforce policy and not an end in itself. Strategy is a set of key decisions made
to meet objectives. A strategy of a business organization is a comprehensive master plan stating
how the organization will achieve its mission and objectives.
Here are some definitions of strategy.
Chandler(1962)Strategy is the determinator of the basic long-term goals of
an enterprise, and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals;
Mintzberg (1979) Strategy is a mediating force between the organization
and its environment: consistent patterns in streams of organizational
decisions to deal with the environment.
Prahlad (1993) Strategy is more then just fit and allocation of resources. It
is stretch and leveraging of resources
Porter (1996) Strategy is about being different. It means deliberately
choosing a different set of activities to deliver a unique mix of value.

Mintzberg has identified the 5 P’s of strategy. Strategy could be a plan, a pattern, a position, a
ploy, or a perspective.
1. A plan, a “how do I get there”
2. A pattern, in consistent actions over time
3. A position that is, it reflects the decision of the firm to offer particular products or
services in particular markets.
4. A ploy, a maneuver intended to outwit a competitor
5. A perspective that is, a vision and direction, a view of what the company or organization
is to become.

Why Corporate Strategy?
Strategic management is basically needed for every organization and it offers several benefits.

1.Universal
Strategy refers to a complex web of thoughts, ideas, insights, experiences, goals, expertise,
memories, perceptions, and expectations that provides general guidance for specific actions in pursuit of particular ends. Nations have, in the management of their national policies, found it
necessary to evolve strategies that adjust and correlate political, economic, technological, and
psychological factors, along with military elements. Be it management of national polices,
international relations, or even of a game on the playfield, it provides us with the preferred path
that we should take for the journey that we actually make.

2. Keeping pace with changing environment
The present day environment is so dynamic and fast changing thus making it very difficult for
any modern business enterprise to operate. Because of uncertainties, threats and constraints, the
business corporation are under great pressure and are trying to find out the ways and means for
their healthy survival. Under such circumstances, the only last resort is to make the best use of
strategic management which can help the corporate management to explore the possible
opportunities and at the same time to achieve an optimum level of efficiency by minimizing the
expected threats.

3. Minimizes competitive disadvantage
It minimizes competitive disadvantage and adds up to competitive advantage.
         
                      MKESSA, Patricia