Strategy means the skill of managing any affair. It is used to describe a pathway along which the organization moves towards its goals or objectives. It is a method or plan chosen to bring about the desired future, such as the achievement of a goal, objective, or solution to a problem. Actually, it is an action plan for maximizes one’s strength against the forces at work in the business environment.
However, the components of a strategy are discussed below:
Market advantage: Market advantage refers to the surrounding environment of the organization, Examples: the demand level, products design, color, packaging, brand, and so on the customers choose.
Asset of the organization: The second element of a strategy is the consideration and analyzing of the assets and manpower resources of an organization. The collection of fixed and current capital also falls, under it.
Executives’ expectations and Values: The employees’ values expectations, desires, philosophies, concepts etc. have a great impact on the strategy of an organization.
Declared and accepted social responsibility of organization: The last element or component of a strategy is the owner’s ethics. An organization should consider the social rules and regulations, culture, government rules and regulations before forming a strategy.
An organization should formulate a strategy after the careful consideration of the above-mentioned four facts and conditions.