The word strategy is derived from the Greek word “strategtia” which was used first around 400 B.C. This connotes the art and science of directing military forces. In business parlance, there is no definite meaning assigned to strategy. A few definitions stated below may clarify the concept of corporate strategy:
KENNETH ANDREWS(1955), “The pattern of objectives, purpose, goals and the major policies and plans for achieving these goals stated in such a way so as to define what business the company is in or is to be and the kind of company it is or is to be” This definition refers to the business definition.
IGOR ANSOFF(1965) explained the concept of strategy as “the common thread among the organizations, activities and product markets, that defines the essential nature of business that the organization was or planned to be in future”. The definition stressed on the commonality of approach that exists in diverse organizational activities.
HENRY MINTZBERG (1987) explains that “strategies are not always the outcome of rational planning. ………….a pattern in a stream of decisions and actions. The definition makes a distinction between intended strategies and emergent strategies.
ANSOFF (1984) “Basically a strategy is a set of decision making rules for the guidance of organizational behavior.
This definition has changed drastically what Ansoff had said earlier in 1965.
William Glueck defines the term strategy as “the unified, comprehensive and integrated plan that relates the strategic advantage of the firm to the challenges of the environment and is designed to ensure that basic objectives of the enterprise are achieved through implementation process”
The definition lays stress on the following:
- It is a unified, comprehensive and integrated plan
- Challenges of the environment are seen in the context of strategic advantage
- Strategy ensures achievement of basic objectives through proper implementation process