STRATEGY 
Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling the stakeholder’s expectations.
Strategic Decisions are about:
The long-term direction of an organization
The scope of an organization’s activities
Gaining advantage over competitors;
Addressing changes in the business environment;
Building on resources and competences (capability);
Value and expectations of stakeholders
Therefore, those decisions tend to:
Be complex in nature
Complexity is a defining feature of strategy and strategic decisions and is especially so in organizations with wide geographical scope, such as multinational firms, or wide ranges of products or services. For example, Yahoo! faces the Complexity both of a fast-moving market environment and poorly organized internal businesses.
Be made in situations of uncertainty
Uncertainty is inherent in strategy, because nobody can be sure about the future. For Yahoo!, the Internet environment is one of constant and unforeseeable innovation.
Affect operational decisions
Operational decisions are linked to strategy. For example, any attempt to coordinate Yahoo!’s business units more closely will have knock-on effects on web-page designs and links, career development and advertiser relationships. This link between overall strategy and operational aspects of the organization is important for two other reasons. First, if the operational aspects of the organization are not in line with the strategy, then, no matter how well considered the strategy is, it will not succeed. Second, it is at the operational level that real strategic advantage can be achieved. Indeed, competence in particular operational activities might determine which strategic developments might make most sense.
Require an integrated approach (both inside and outside an organization)
Integration is required for effective strategy.
Strategic Decisions are about:
The long-term direction of an organization
The scope of an organization’s activities
Gaining advantage over competitors;
Addressing changes in the business environment;
Building on resources and competences (capability);
Value and expectations of stakeholders
Therefore, those decisions tend to:
Be complex in nature
Complexity is a defining feature of strategy and strategic decisions and is especially so in organizations with wide geographical scope, such as multinational firms, or wide ranges of products or services. For example, Yahoo! faces the Complexity both of a fast-moving market environment and poorly organized internal businesses.
Be made in situations of uncertainty
Uncertainty is inherent in strategy, because nobody can be sure about the future. For Yahoo!, the Internet environment is one of constant and unforeseeable innovation.
Affect operational decisions
Operational decisions are linked to strategy. For example, any attempt to coordinate Yahoo!’s business units more closely will have knock-on effects on web-page designs and links, career development and advertiser relationships. This link between overall strategy and operational aspects of the organization is important for two other reasons. First, if the operational aspects of the organization are not in line with the strategy, then, no matter how well considered the strategy is, it will not succeed. Second, it is at the operational level that real strategic advantage can be achieved. Indeed, competence in particular operational activities might determine which strategic developments might make most sense.
Require an integrated approach (both inside and outside an organization)
Integration is required for effective strategy.