The term strategy is derived from a Greek word “strategos” which means generalship-the actual direction of military force, as distinct from the policy governing its development. At first, the word was used in terms of Military Science to mean what a manager does to offset actual or potential actions of competitors.
According to Hofer and Schendel a strategy is the mediating force or ‘match’ between the organization and the environment.
Definitions by various authors
- According to Alfred D Chandler
Strategy is the determination of the basic long-term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.
- According to Kenneth Andrews
Strategy is the pattern of objectives, purpose, goals and the major policies and plans for achieving these goals stated in such a way so as to define what business the company is in to be and the kind of the company it is or is to be.
- According to William F Glueck
Strategy is a unified, comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved.
- According to Henry Mintzberg
Strategy is a pattern in a stream of decisions and actions.
Strategic Management definition
- Strategic management is the process of identifying, evaluating and implementing strategies in order to meet the organizational objectives.
- Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives.
Definitions by various authors
- According to Glueck
Strategic Management is a stream of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives.
- According to Hofer
Strategic Management is the process which deals with the fundamental organizational renewal and growth with the development of strategies, structures and systems necessary to achieve such renewal and growth and with the organizational systems needed to effectively manage the strategy formulation and implementation processes.
- According to Sharplin
Strategic Management is the formulation and implementation of plans and carrying out of activities relating to the matters which are of vital, pervasive pr continuing importance to the total organization.
- According to Ansoff
Strategic Management is a systematic approach to a major and increasingly important responsibility of general management to position and relate the firm to its environment in a way that will assure its continued success and make it secure from surprises.
Strategic management is important to all organizations because it provides a structured process of analysis, using tools and frameworks to study the external and internal environment and provides a logical approach to strategic decision making. Strategic management is the organized development ofthe resources of the functional areas : financial, manufacturing, marketing, technological, manpower etc. in the pursuit of its objectives. It is the use of all the entity’s resources.
Strategic management is the process by which an organisation formulates its objectives and manages to achieve them. Strategy is the means to achieve the organisational ends