Strategy is defined in the corporate world as a plan to lead the company to its long-term goals and achievements. Goals and achievements are essentially a way to make sure the business has continued success and meets the demands of the business’ stakeholders. In addition, the strategy would also make sure that the long-term goals would include a return on investment to the shareholders. So the main idea behind a strategic plan is to make sure all goals and achievements are met in an always changing business environment.
With any plan it is just what it is. If the plan isn’t managed to ensure effectiveness then the plan is just that… a plan that won’t go anywhere. The plan must be made up with three components to be a strategic plan: strategic position, strategic choices and translating the strategy into action. Strategic Position
In order for strategic management to work, the business must have a complete understanding of its current state and what elements may or may not affect the position of the company. Having a complete understanding of the strategic plan and how internal and external factors can affect the current position of the company will help. For example, political, legal and even social climates have changed a great deal over the past couple of decades. With laws changing and new regulations that businesses’ must follow, it is important to have the position of the plan in line with all laws and regulations not only within the state that your business is in but also with any state the business may do business within. Having a clear idea of what forces may affect the business and knowing what threats exist when making or putting a plan in place, will help the strategic plan be successful (The "Strategic Management Of British Airways Company," 2010). Strategic Choice
What is Choice? “Choice as it relates to a business plan is the process of decision-making that occurs once a review of all available data and...