Dear , Strategies and strategic decisions are normally concerned with the long term direction of an organisation. They at least affect the direction. They are often based upon trying to achieve some advantage or some benefit for the organisation in relation to their competition for example.
Furthermore, strategic decisions are likely to be concerned with the scope of an organisations activities such as what it does or should be doing in a given area of activity. This is fundamental because the scope of the activity will determine the way in which those responsible for managing the organisation conceive the organisations boundaries.
Strategy itself is sometimes the matching of the activities of the organisation with the environment in which it operates (i.e., strategic fit). Such an approach enables the organisation to identify the opportunities that exist in the said environmnet and thereafter tailoring the future strategy to capitalise on them. Strategy can also be seen to 'stretch' and not only 'fit'.
This is where the organisations resources and competences are built upon or stretched to both create and capitalise on opportunities. Organisations should not stick to just stretch or fit strategies, but utilise a combination of both.
As strategies often require major resource changes they also must affect the operational decisions of an organisation. If operational aspects of the organisation are not in line with the strategy then the strategy will not succeed. Besides it is actually at the frontline, the operational level, wherein true and real strategic advantage is gained.
Strategies reflect the expectations and values of those who have the power in and around the organisation, the stakeholders, whomsoever they be.
Definition of Strategy: Strategy is the direction and scope of an organisation over the long term: which achieves advatage for the organisationthrough its configuration of resources within a...