Strategy in the business world is analogous to playing a classic game of chess. Without a strategy, a player is merely moving pieces around the board according to the rules. In this scenario, the outcome is not great, especially if the competing player has a strategy and understands what it takes to win the game.
Northwestern University’s Kellogg School of Management defines strategy as “the set of objectives, policies and resource commitments that collectively determine how a business positions itself to create wealth for its owners.” Strategies should be reflective of the boundaries of the firm, industry economics, strategic positioning, and sustainable competitive advantages.
In markets, there often is no “end” to the chess game. Rather, it is ongoing, demanding that organizations constantly possess strategies that are fluid and evolve to meet changing environments and challenges. While an organization may have a general strategy or mission statement, underlying strategies to achieve them must remain fluid or the organization may fall out of the market entirely (i.e. Atari, Blockbuster, Polaroid, Circuit City, Borders).
Lack of strategies and strategic blunders can be death sentences to an organization. If you would like more information on developing a strategy for your organization, please fill in the form below for an initial consultation.