MODULE 8: THE CONCEPT OF STRATEGY
A Plan is a goal-directed system of action. It specifies the actions which must be taken and the sequence in which must taken and the sequence in which they must occur in order to achieve some future objective. Basic to all planning is the generic need which the company will seek to satisfy, i.e., its mission. This is clearly a top-management decision and one which cannot easily be altered one firm management has decided to commit the resources at their command to that end. a strategic plan is one which describes the allocation of a firm’s resources which the management believes will achieve the corporate mission with the greater efficiency over the long run. Supporting the strategy and contributing to its implementation are plans for the operations, logistics, and organization called for by the strategy, Together, these constitute a hierarchy of objectives, and plans to achieve the,m which make up the guidance system of an enterprise.
Strategy – Tactic/Line of attack/on going process
Plan – Map/sketch/thinking ahead
Planning – scheduling/ settingup/preparation
Mission – task/ job/ assignment
It basically addresses the questions:
• Where am I now?
• Where am I going?
• How will I go there?
• Vision - dream
Mission and Strategy
As it is used in an everyday sense, the world strategy carries the connotation of a particularly adroit or skillful plan. Some writers plan. Been more precise and defined a strategy as a complete plan, so complete that it is unlike to be upset by any recognizable outside force. It is a set of direction which specifies which choices a firm will make in every conceivable situation which available information enables management to identify.
The term strategy is derived from strategikos, a word which the Greeks used to describe what the commanding officer did in a military campaign. The military commander is charged with a mission and must allocate and position the forces under him in a way which offers the greatest probability of achieving it. Since the enemy is not likely to accommodate him by revealing what they plan to do, the commander must base his strategic decisions on assembled intelligence about the enemy, the terrain over which military operations will be conducted, and any other factors which have a bearing on the ability of his forces to function as well as those of the enemy.
Marketing Strategy – That part of the company’s strategic plan which deals with the development of its products and services, the stimulation of demand for them, the determination of their prices, and the makeup strategy. Its major elements are product and the service definition, promotion, pricing, and distribution. 1. Product Definition – Since a product is simply a bundle of properties, it should possess those properties which fit the needs of target market in a way which will give the marketer the greatest competitive advantage. Due to the diversify of needs, few manufacturers produce but a single line of products. ( e.g. grinding wheels, power transmission equipment.) 2. Service Definition – depending on the nature of the product offering and the needs of firms composing the target market, service maybe indispensable in winning and holding customer. 3..Promotion – Advertising, personal selling, and sales promotion are all ways in which a marketer can stimulate demand for his products. In essence , promotion is the function of inducing customers and prospective customers to buy the company’s products in quantities and at prices which yield satisfactory profits. 4. Pricing – The prices at which products should be sold represent a complex interaction of ingredients which includes legal considerations as well as consideration of cost and demand. These consideration must be weighed against a background of competition and industry practice. 5. Channels – there are a number of alternatives a...
Please join StudyMode to read the full document