Strategy
• The concept of ‘strategy’ was originally introduced and defined in ancient military
literature and dictionaries as ‘… a plan of attack for winning the battle’ or ‘a plan
for beating the opposition’.
• The first definition of strategy appeared in the literature and dictionaries of the
business field in 1952 only.
• At this point in time, strategy was seen by businesses as a plan for achieving
organizational goals.
• Strategy in its simplest form means a plan that is designed in order to meet the
objectives of the organization.
• The concept of ‘strategy’ is in all probability one of the most used and frequently
misinterpreted expressions in business. Strategy is used very widely and in a very
broad sense in the business world.
• According to Meek & Meek, strategy has the same meaning, whether used in a
corporate context, marketing context, or even as a strategy to expand the product
mix – it is concerned with how organizations might achieve their goals and
objectives. In fact, the only notable difference lies in the level at which the
strategy is developed − top-, middle- or lower -level.
• The concept of ‘strategy’ in the modern business world can be defined as an action
plan, or a pattern that brings together the objectives and activities of an
organization into a cohesive whole.
• West, Ford & Ibrahim defined strategy simply as ‘the means an organization uses
to achieve its goals and objectives’, therefore a strategy sets out the direction and
the scope of an organization over the long term.
• Wilson & Gilligan added another dimension to the definition of strategy as being
the broad statement of the way in which the organization sets out to achieve its
goals and objectives.
• In 1987, Henry Mitzberg identified a multiplicity view of strategy by proposing five
definitions of strategy,
• Which are referred to as the 5 Ps of strategy – strategy plan, ploy, pattern, position and
perspective.
• 1. Strategy plan. A plan is usually the most used manner of describing the concept of
‘strategy’. A plan basically means that a set of actions for achieving something has been
put in place and the progress of these actions monitored from the start to the expected
finish.
• 2. Strategy ploy. This generally refers to a short-term strategy that tends to have limited
objectives and it may be subject to change at very short notice.
• 3. Strategy pattern. This refers to consistent behaviour taking place. This means progress
is made due to a consistent form of behaviour that has been adopted.
• 4. Strategy as a position. As a position, strategy looks downwards towards the meeting
of customer needs, and outwards towards the external competitive market.
• 5. Strategy as a perspective. This refers to the organisation’s way of doing things and is
also called the interviewer view or experience.
• The next step is to identify the three types of strategies that can be defined in relation to
the organizational structure. These strategy levels are
• Corporate strategy
• Business strategy
• Functional strategy
Strategic marketing
• Strategic marketing refers to the strategic process that is focused on the establishing
and maintaining of a relationship with new and existing customers that will result in
satisfying these customers’ needs, offering innovative products and services aimed at
unmet customer needs and in the process also leading to the organization attaining its
long-term goals.
• Strategic marketing is the process of planning, implementing and controlling the
marketing efforts of the organization in order to meet the goals and objectives of the
organization and successfully satisfy customer needs and wants.
•
•
•
•
•
Tasks of strategic marketing
1. Giving strategic direction;
2. Deciding on the market scope;
3. Designing the market offering;
4. Evaluating and controlling the performance.
• SBUs can be defined as distinct businesses set up as units in a larger company to
ensure that a certain product or product line is promoted and handled as though it
were an independent business.