The term strategy is one of the most commonly used words, especially in the business environment. Many organizations find it necessary to define the term and use it in their business operations. Management, business schools and inside training focus on a different strategy development intended to equip people with the knowledge they need to form and implement strategic decisions in their organizations. People find it necessary to use strategy in different settings, especially whenever they need to plan something. This includes planning anything from business and organizational issues to social life and other informal situations. Different departments within the organization have their own strategies, which might be distinct from the overall organization strategy, but which contribute towards fulfilling the goals that the organization has established. Strategy implies having the foresight, a holistic view of issues while identifying and defining goals as well as finding ways to achieve them.
In simple terms, strategy refers to the general direction that an organization takes in fulfillment of its goals. It is “an action plan designed to move an organization toward the achievement of its vision”. Although the term strategy is often used in business, it is borrowed from the military language. In the military sense, the term strategy is the action of directing troops into position, before they engage the enemy in war. This involves understanding the best position and direction to use, as well as understanding the enemy in order to enable one to become successful, once the enemy becomes involved in the war. In understanding strategy as a term used in the military, Liddel Hart defines strategy as “the art of distributing and applying military means to fulfill the ends of policy”. The same concept applies in business since strategy creates a competitive advantage. It involves the organization having the foresight of the industry and market and developing measures to ensure that it is ready to handle the competition. For an organization to develop a strategy, it has to have a policy, which will help in achieving its aim. This way, the organization is able to spearhead and pioneer the competition. Strategy acts as a link between the gaps that exist, once an organization forms a policy and tactics that it intends to use in terms of implementing the policies. Strategic decisions enable an organization to differentiate itself from the competition. It is not a short-term measure, but it is a way for the organization to ensure that it takes care of its future needs by developing long-term goals.