What is strategy?
Inspired by the military system, strategy has become an essential element of modern management. The term "strategy" comes from the Greek word, "stratos" (army) and the "agein" (to lead). "Strategy"- in Athens a general was chosen. The Greeks believed that the responsibility of the leader strategy. Another source is the policy strategy. Niccolo Machiavelli gave a political strategy study directly related to political activity of city manager. Theoretical contributions of scientists and practitioners have completed the strategy approaches.
The strategy appears to present many aspects. "The concept of strategy is more complex than seems at first sight and has many aspects. Strategy definitions tend to emphasize one or two of these issues, but may not include all briefly. Soldiers, scientists and practitioners, all studied and wrote about the strategy. Perspective of each of these groups has relevance to the practice manager, but each has limitations."[1] A brief definition of the strategy can be "ideas and actions designed to ensure future business."[2]
John Kay believes that in the strategy domain we are at a stage equivalent to that of early medicine is also used when concepts such as "humor," "elements" etc. Prestige of doctor was based, then, on the patient status and confidence in his advice rather than its results. A manager must select those elements of the strategy that will ensure future success. Any competent strategist should be able to understand different approaches to strategy and possess the necessary training to be able to judge which perspective is most appropriate in a given situation.
From the multiple perspectives specific for strategy can be mentioned: strategy as vision on the purposes of the future activities of the organization; strategy as a higher level plan; strategy as providing the means to defeat the competitors; strategy as an aspect of leadership; strategy to build capabilities; strategy as a way of matching between capabilities and opportunities; strategy as a result of involvement in the business; strategy as a model of behavior resulting from a specific culture; strategy as an emerging pattern of successful behavior.
Whittington[3] presents four new types general approach to strategy (Table no. 1) A more multidimensional presentation is the Mintzberg's (Table no. 2) which presents seven approaches (schools).
Table 1 The four schools after Whittington
Characteristic |
Classical |
Processual |
Evolutive |
Systemic |
Determinism - emergence |
Determinism |
Determinism |
Emergence |
Emergence |
one purpose/multiple purposes |
one purpose |
multiple purposes |
one purpose |
multiple purposes |
strategy style |
Formal |
Cunning |
Efficient |
assimilated |
influences |
Economics/military |
Psychological |
Economics/biological |
Sociological |
Years of influence |
1960 |
1970 |
1980 |
1990 |
Table 2 The seven schools in strategy
School |
Processes nature |
Main approaches |
Entrepreneurial |
Vision |
Focus on the vision of the future. Important for start-ups, alliances or based on charisma |
Cognitive |
Mental processes |
Examination of mental processes and leadership plans. Examination of internal flashes |
Learning |
Emergence |
To see the planning as representing management learning. A company can learn and adapt which may be successful in an uncertain world. |
Power |
Negotiation |
Examination of power and negotiation processes through which are formed the strategies in enterprise |
Culture |
Collective processes |
Strategies derived from the collective and cultural processes of the company that may be original and thus a source of advantage. |
Environment |
Reactive processes |
Organizational clusters, ecological niches specific until the resources become poor or they meet hostile conditions and they die. |
Configuration |
Transformation processes |
Organizations exist in configurations on stage long time, but they must transform itself |