Practical Application of Strategy in Business - Literature review Example

Introduction There are many angles through which the concept of strategy can be examined. This is based on the fact that there are different theories, perspectives and approaches that can be used as the yardstick for the definition of strategy. This paper examines the different definitions of strategy that exists. It would examine the different approaches and classifications that are used to define strategy and how it relates to modern business and business activities. Definition of Strategy There are many facades and angles for the definition of strategy. This is because it is an everyday term that many people are used to all areas and angles of life and allows people to order their lives. Hence, strategy has its role in our normal speech. However, different people and different groups of people have various ways of defining strategy. Peng, provides a very basic definition of strategy which states that “strategy refers to how to compete and attain a given end” (2011: p18). In other words, strategy refers to how a person plans for the best results and also works to attain a given end according to a set of pre-defined objectives. Thus, in the simple sense, strategy refers to identifying your aims and finding the best method amongst a set of alternatives to attain the aims. Pressley and Hilden provide a much longer definition of the term strategy they say that: “A strategy is composed of operations over and above the processes that are a natural consequence of carrying out the task, ranging from one such operation to a sequence of interdependent operations. Strategies achieve goals and purposes through conscious and controllable activities” (2011: p512). This long definition of Pressley and Hilden shows that strategy is about making a conscious and controllable effort to attain a set of goals and purposes. In other words, strategies are deliberately. This is in contrast with living without a plan. It is about having a structured end with a structured goal in mind. This end and goal must be humanly possible or attainable by the people involved in the issue. Thus, strategy is a conscious effort to meet an end and this is pervasive in life. Hence, strategy is an everyday term and a common idea that all people adhere to. Strategy also involves a set of processes and activities that must be carried out to attain the end. So it is about a plan and working to implement the plan to work to attain the stated or given end. Strategy involves a structured set of activities that work together to attain an expected end which are formulated in the aims and objectives of the people carrying it out. Another definition that is given states that a strategy is “the pattern or plan that integrates an organisations major goals, policies and sequences into a cohesive whole. A well formulated strategy helps to marshal and allocate an organisations resources into a unique and viable posture based on its realistic internal competencies and shortcomings, anticipated changes in the environment and contingent moves by intelligent opponents” (John and Collies, 2009): p176). This definition of strategy indicates that it is a set of collective plans that come together to attain a given end. Thus, a strategy can be seen as a mammoth or universal collection of plans that is meant to move an organisation or group of people to a given end. A strategy is therefore related to the main and central plan, the every essence of a person or an organisation. In that sense, strategy can be seen as the collection of means and activities that would attain the main or central aim of the organisation or group. Hence, strategy is the collection of goals and aims to attain the finality of the core aim and objective of a given group or organisation. From the John and Collies definition, strategy has to do with the formulation and the use of the numerous plans of the entity to attain a given end by operating in a given environment to attain the expected end. In other words, strategy is about the manipulation of different elements of the environment with the view of using all the forces in the external environment to attain the given end or objectives. The plans that culminate in strategy must also be arranged and ordered in such a way that it would allow the company to compete with its competitors and still attain the aim in the best way possible. History of Strategy & the Military/Governance Armstrong begins his discourse on strategy by examining the definition of strategy put forward by the Oxford English Dictionary. The definition states that strategy is “the art of a commander-in-chief; the art of prospecting and directing the larger military movements and operations of a campaign” (Armstrong, 2010 p21). Strategy in this angle relates to how a government or the supreme commander of a countrys military carries out his activities. This implies the way the supreme commander of a nations military combines resources and activities with the view of attaining the objectives and ends of the country or the military. As a matter of fact, most historians and business theorists identify that strategy has its roots and history in military warfare and governance. This is because in the past, nations survived by maintaining a good foreign policy as well as a strong army. Thus, there were times that a nation has to go out and wage war. Over the years, there were different approaches and techniques that were used to guide the conduct of war (Mirow, 2008: p6). The art and science of war developed and the countries got to a point where the fate of nations depended on how their leaders organised the nation and how they waged war to either defend or expand the nation. This was the main way that the nation could protect its boundaries. Thus, governments around the world needed to have armies and governments that were competent and had a plan to protect security and also a plan to launch and maintain military campaigns (Mirow, 2008: p6). Thus, historically, strategy referred to the plans and directions that were given by potentates which include kings, presidents and heads of states on how to run the military and how to blend the civil society with them military plans and objectives of the nation. A perfect example is the case of Napoleon Bonaparte who acted as the head of state of the French Republic. Napoleon is cited for carrying out so many decrees that were meant to keep the borders of France intact and also help expand the French Empire. Other leaders like Adolf Hitler and other Winston Churchill as well as a large succession of US presidents have carried out various policies on how to keep the military going and how to ensure that they were moving according to the plans of the nation in question. Carl Von Clausewitz, an authority in warfare and military doctrine came up with important ideas and concepts that define the necessary intervening factors and systems that define military strategy. According to him, there are five main elements that shapes the military and defence strategy of a given nation, they are as follows (Gray, 2011): 1. Political Context: Every commander-in-chief gets his power through the people he rules. Hence, the people and the community that a leader rules has some kind of principles and rules that regulates his position as a leader and guides his conduct. Thus, the strategy that a king or leader formulates relating to war must be rooted in the philosophical and ideological linings of the people. This means that the laws and the customs and norms of the nation form a main constraint system for the kind of strategy that a commander-in-chief must come up with. Clauswitz calls this the strategic context. This refers to the political demand and the military supply. In other words, the demands of a given nation or community defines the kind of military needs that the nation needs. 2. Socio-cultural Context: The social and cultural context of a given nation defines the kind of military strategy that might be accepted. Also, the social and cultural context of the people in nearby lands are important. Gray cites the example of the Ottoman Empire which had a tradition and system of waging war and having war as its primary business (2011). In such a nation, an aggressive military strategy was the only option that could legitimize the nation. This is because, the culture spurred demand. On the other hand, a nation with a religious theme like Ancient Israel was only required to get a military policy that defended the nation and people and not one that was aggressive. 3. Economic Context: Financial matters were always a major factor that influenced the kind of military strategy that was put in place by a nation or state. If a nation had enough money to fund a standing army, it was likely to wage war and run a sophisticated army. Nations that did not have money, like Britain in 1800 needs to find ways of collecting money to find its adversaries and this was the duty of the Commander-in-chief. In the case of Britain in the 1800s, William Pitt the Younger had to increase taxation to raise money to contain Napoleon Bonapartes expansion (Gray, 2011). 4. Technological Context: Strategy is constrained by the technology and techniques available at a given time. Japans Emperor had to step in and surrender when the American used the atomic bomb against Hiroshima and Nagasaki. This was simply because Japan was not in a position to technologically defend its airspace or retaliate. Thus, they had to surrender. 5. Geographical Context: In making strategies relating to warfare, a commander-in-chief has to know the geographic terrain of the area it seeks to control and understand the variables. A famous example is the fact that British colonialism flourished because of their control of strategic locations like Gibraltar which was used for refuelling British Ships and the Suez Canal which allowed the British military to move freely and provide assistance in the Empire wherever it was needed. Also, Napoleon and Hitler both failed to capture Russia because they all invaded Russia in winter and could not wage war successfully. Strategy & Business After the Second World War, when liberalization and free enterprise took the centre-stage, warfare and international aggression was put behind the need to make money. Thus, businesses grew and the concepts of strategy as it is was applied to warfare in the pre-1945 era grew and became significant in business success. Thus, businesses were ran with the principles of strategic planning and strategic management. A classic definition for strategy in the business context is put forward by Trent (2011). He states that strategy is “a long term plan of objectives and purposes that sets the broad constraints and policies which restrict the companys scope and defines the plans and short term goals of all units of the organisation” (Trent, 2011: p109). This is means that strategy is a long-term plan and it includes the definition of the very essence of the company and what the company exists to attain over a long period of time. However, strategy has an element that makes it a long-term plan which affects the whole and entire organisation and not just a part of it. In other words, strategy defines the broad framework within which the company has to operate and carry out their activities. “Strategy indicates what a company can do (organisational strengths and weaknesses) within the competitive context of what it might do (environmental opportunities and threats” (Sloman, 2009: p22). This means that strategy identifies where the company would be positioned over a long period of time because of the strengths and weaknesses of the entity. This means that strategy is about what a company plans to do over a long period of time as opposed to what would be done over the short term or the near future. To sum this up, Mosley (2011) identifies three main elements or features of strategy. They are: 1. Strategy defines the overall direction of the organisation: In other words, strategy defines the main end and the main essence for which the entity is formed. This means that it is the blueprint that dictates the core activities and core plans of the company. 2. Strategy has a long-term outlook: In other words, strategy covers a period of between seven and ten years and defines what must be attained in this period and how it should be done. Strategy is a long-term horizon and as such, short-term targets of one year plans are subject to the long-term strategy of the organisation. 3. Strategy impacts on the entire organisation: Due to the fact that it is an overall direction, it provides the framework for the activities of all sub units of the entity. As such, all the units of the company would have to operate according to the main strategy and not go off course. Practical Application of Strategy in Business. Long Term Organisationwide Top-Level Conclusion Strategy in its simple term is the conscious effort to attain a given end. It is a system meant to compete and survive by choosing between alternatives. Embodiment of goals and plans to attain a given end. Goals that make the strategy need to be responsive to the external environment and must be ordered to beat and outwit competitors. Strategy has its roots in military warfare and governance. Political, economic, sociological, technological and geographic constraints. Business Strategy: Long term, Organisation wide, Top level management. References Armstrong, M. (2010) Strategic Human Resource Management London: Kogan Gray, C. S. (2011) Recognising and Understanding Revolutionary Change in Warfare Darby, PA: DIANE Publishing John, R. and Gilles, L. G. (2009) Global Business Strategy Mason, OH: Cengage Mirow, W. (2008) Strategic Culture Matters Munster: LIT Verlag Mosley, G. B. (2011) Managing Healthcare Business Strategy New York: Jones & Bartlett. Peng, M. W. (2011) Global Strategy Mason, OH: Cengage Pressley, M. and Hilden, K. (2011) Cognitive Strategies Hoboken, NJ: John Wiley & Sons. Sloman, M. (2009) Handbook for Training Strategy Boston, MA: Gower Publishing. Trent, R. J. (2011) Strategic Supply Management New York: Trent Publishing. Read More