The term strategy is derived from the Greek word ‘strategos’ which means ‘the art of the general’. This concept was firstly designed for the military science where it implies the plan of the major military commander to win the battle. And since it was related to accomplish the desired goals ,it is now commonly used in business environment.
It refers to firms overall plan to deal with it’s existing and upcoming environment. Is it made in the light of of plans of competitors as the modern businesses is conducted in the competitive environment and one has to face and overcome these competition to survive in the market.
Hence, strategy may be defined as a concious and rational management exercises which involves defining and achieving an organization’s objectives and implementing it’s mission.
The perspective of strategy is provided by what an organisation intends to do. A strategy refers to the basic goals and objectives if an organization,the major programmes of action chosen to reach these goals and objectives,and major patterns of resources allocation used to relate the organization to it’s environment.
In other words, strategy refers to a course of action through which an organization plans to adapt to the threats and opportunities in it’s environment and thereby maintain it’s effectiveness . The active formulation of strategy is known as strategic planning.
Strategic decisions are based on expected behavior of forces in external environment. these factors include suppliers ,creditors,customers,competitors , government and others . Too management is primarily responsible for making and implementing strategic decisions. It is an integrated plan for the allocation of scarce resources of an organization.
It deals with the future which is anticipated by the management. It deals with long term goals and hence standing. every organization needs a strategy to achieve it’s objectives.