Chandler made a comprehensive analysis of interrelationships among environment, strategy, and organizational structure. He analyzed the history of organizational change in 70 manufacturing
firms in the US. While doing so, Chandler defined strategy as: “The determination of the basic long-term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.”

Note that Chandler refers to three aspects:

• Determination of basic long-term goals and objectives,
• Adoption of courses of action to achieve these objectives,
• Allocation of resources necessary for adopting the courses of action.