What is the definition of the word strategy

From Wikipedia, the free encyclopedia

Strategy (from Greek στρατηγία stratēgia, «art of troop leader; office of general, command, generalship»[1]) is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the «art of the general», which included several subsets of skills including military tactics, siegecraft, logistics etc., the term came into use in the 6th century C.E. in Eastern Roman terminology, and was translated into Western vernacular languages only in the 18th century. From then until the 20th century, the word «strategy» came to denote «a comprehensive way to try to pursue political ends, including the threat or actual use of force, in a dialectic of wills» in a military conflict, in which both adversaries interact.[2]

Strategy is important because the resources available to achieve goals are usually limited. Strategy generally involves setting goals and priorities, determining actions to achieve the goals, and mobilizing resources to execute the actions.[3] A strategy describes how the ends (goals) will be achieved by the means (resources).[4] Strategy can be intended or can emerge as a pattern of activity as the organization adapts to its environment or competes.[3] It involves activities such as strategic planning and strategic thinking.[5]

Henry Mintzberg from McGill University defined strategy as a pattern in a stream of decisions to contrast with a view of strategy as planning,[6] while Henrik von Scheel defines the essence of strategy as the activities to deliver a unique mix of value – choosing to perform activities differently or to perform different activities than rivals.[7] while Max McKeown (2011) argues that «strategy is about shaping the future» and is the human attempt to get to «desirable ends with available means». Vladimir Kvint defines strategy as «a system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully.»[8] Complexity theorists define strategy as the unfolding of the internal and external aspects of the organization that results in actions in a socio-economic context.[9][10][11]

Components[edit]

Professor Richard P. Rumelt described strategy as a type of problem solving in 2011. He wrote that good strategy has an underlying structure he called a kernel. The kernel has three parts: 1) A diagnosis that defines or explains the nature of the challenge; 2) A guiding policy for dealing with the challenge; and 3) Coherent actions designed to carry out the guiding policy.[12]
President Kennedy illustrated these three elements of strategy in his Cuban Missile Crisis Address to the Nation of 22 October 1962:

  1. Diagnosis: «This Government, as promised, has maintained the closest surveillance of the Soviet military buildup on the island of Cuba. Within the past week, unmistakable evidence has established the fact that a series of offensive missile sites are now in preparation on that imprisoned island. The purpose of these bases can be none other than to provide a nuclear strike capability against the Western Hemisphere.»
  2. Guiding Policy: «Our unswerving objective, therefore, must be to prevent the use of these missiles against this or any other country, and to secure their withdrawal or elimination from the Western Hemisphere.»
  3. Action Plans: First among seven numbered steps was the following: «To halt this offensive buildup a strict quarantine on all offensive military equipment under shipment to Cuba is being initiated. All ships of any kind bound for Cuba from whatever nation or port will, if found to contain cargoes of offensive weapons, be turned back.»[13]

Rumelt wrote in 2011 that three important aspects of strategy include «premeditation, the anticipation of others’ behavior, and the purposeful design of coordinated actions.» He described strategy as solving a design problem, with trade-offs among various elements that must be arranged, adjusted and coordinated, rather than a plan or choice.[12]

Formulation and implementation[edit]

Strategy typically involves two major processes: formulation and implementation. Formulation involves analyzing the environment or situation, making a diagnosis, and developing guiding policies. It includes such activities as strategic planning and strategic thinking. Implementation refers to the action plans taken to achieve the goals established by the guiding policy.[5][12]

Bruce Henderson wrote in 1981 that: «Strategy depends upon the ability to foresee future consequences of present initiatives.» He wrote that the basic requirements for strategy development include, among other factors: 1) extensive knowledge about the environment, market and competitors;
2) ability to examine this knowledge as an interactive dynamic system; and
3) the imagination and logic to choose between specific alternatives. Henderson wrote that strategy was valuable because of: «finite resources, uncertainty about an adversary’s capability and intentions; the irreversible commitment of resources; necessity of coordinating action over time and distance; uncertainty about control of the initiative; and the nature of adversaries’ mutual perceptions of each other.»[14]

Military theory[edit]

Subordinating the political point of view to the military would be absurd, for it is policy that has created war…Policy is the guiding intelligence, and war only the instrument, not vice-versa.

In military theory, strategy is «the utilization during both peace and war, of all of the nation’s forces, through large scale, long-range planning and development, to ensure security and victory» (Random House Dictionary).[6]

The father of Western modern strategic study, Carl von Clausewitz, defined military strategy as «the employment of battles to gain the end of war.» B. H. Liddell Hart’s definition put less emphasis on battles, defining strategy as «the art of distributing and applying military means to fulfill the ends of policy».[15] Hence, both gave the pre-eminence to political aims over military goals. U.S. Naval War College instructor Andrew Wilson defined strategy as the «process by which political purpose is translated into military action.»[16] Lawrence Freedman defined strategy as the «art of creating power.»[17]

Eastern military philosophy dates back much further, with examples such as The Art of War by Sun Tzu dated around 500 B.C.[18]

Management theory[edit]

The essence of formulating competitive strategy is relating a company to its environment.

Modern business strategy emerged as a field of study and practice in the 1960s; prior to that time, the words «strategy» and «competition» rarely appeared in the most prominent management literature.[20][21]
Alfred Chandler wrote in 1962 that: «Strategy is the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.»[22] Michael Porter defined strategy in 1980 as the «…broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals» and the «…combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there.»[19]

Henry Mintzberg described five definitions of strategy in 1998:

  • Strategy as plan – a directed course of action to achieve an intended set of goals; similar to the strategic planning concept;
  • Strategy as pattern – a consistent pattern of past behavior, with a strategy realized over time rather than planned or intended. Where the realized pattern was different from the intent, he referred to the strategy as emergent;
  • Strategy as position – locating brands, products, or companies within the market, based on the conceptual framework of consumers or other stakeholders; a strategy determined primarily by factors outside the firm;
  • Strategy as ploy – a specific maneuver intended to outwit a competitor; and
  • Strategy as perspective – executing strategy based on a «theory of the business» or natural extension of the mindset or ideological perspective of the organization.[23]

Strategies[edit]

In game theory, a strategy refers to the rules that a player uses to choose between the available actionable options. Every player in a non-trivial game has a set of possible strategies to use when choosing what moves to make.

A strategy may recursively look ahead and consider what actions can happen in each contingent state of the game—e.g. if the player takes action 1, then that presents the opponent with a certain situation, which might be good or bad, whereas if the player takes action 2 then the opponents will be presented with a different situation, and in each case the choices they make will determine their own future situation.

Strategies in game theory may be random (mixed) or deterministic (pure). Pure strategies can be thought of as a special case of mixed strategies, in which only probabilities 0 or 1 are assigned to actions.

Strategy based games generally require a player to think through a sequence of solutions to determine the best way to defeat their opponent.

Counterterrorism Strategy[edit]

Because counterterrorism involves the synchronized efforts of numerous competing bureaucratic entities, national governments frequently create overarching counterterrorism strategies at the national level.[24] A national counterterrorism strategy is a government’s plan to use the instruments of national power to neutralize terrorists, their organizations, and their networks in order to render them incapable of using violence to instill fear and to coerce the government or its citizens to react in accordance with the terrorists’ goals.[24] The United States has had several such strategies in the past, including the United States National Strategy for Counterterrorism (2018);[25] the Obama-era National Strategy for Counterterrorism (2011); and the National Strategy for Combatting Terrorism (2003). There have also been a number of ancillary or supporting plans, such as the 2014 Strategy to Counter the Islamic State of Iraq and the Levant, and the 2016 Strategic Implementation Plan for Empowering Local Partners to Prevent Violent Extremism in the United States.[24] Similarly, the United Kingdom’s counterterrorism strategy, CONTEST, seeks «to reduce the risk to the UK and its citizens and interests overseas from terrorism, so that people can go about their lives freely and with confidence.»[26]

See also[edit]

  • Concept Driven Strategy
  • Consultant
  • Odds algorithm (Odds strategy)
  • Sports strategy
  • Strategy game
  • Strategic management
  • Strategy pattern
  • Strategic planning
  • Strategist
  • Strategy Markup Language
  • Time management
  • U.S. Army Strategist

Further reading[edit]

  • Burgelman, James. Strategy is Destiny (2002): Strategy Is Destiny: How Strategy-Making Shapes a Company’s Future
  • Freedman, Lawrence. Strategy: A History (2013): Strategy: A History 1st Edition
  • Heuser, Beatrice. The Evolution of Strategy (2010): The Evolution of Strategy: Thinking War from Antiquity to the Present
  • Kvint, Vladimir. Strategy for the Global Market: Theory and Practical Applications (2016): Excerpt from Google Books

References[edit]

  1. ^ στρατηγία, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus
  2. ^ Freedman, Lawrence (2023). Strategy. Oxford University Press. ISBN 978-0-19-932515-3.
  3. ^ a b Freedman, Lawrence (2013). Strategy. Oxford University Press. ISBN 978-0-19-932515-3.
  4. ^ Simeone, Luca (3 July 2020). «Characterizing Strategic Design Processes in Relation to Definitions of Strategy from Military, Business and Management Studies» (PDF). The Design Journal. 23 (4): 515–534. doi:10.1080/14606925.2020.1758472. S2CID 218922359.
  5. ^ a b Mintzberg, Henry and, Quinn, James Brian (1996). The Strategy Process: Concepts, Contexts, Cases. Prentice Hall. ISBN 978-0-132-340304.
  6. ^ a b Henry Mintzberg (May 1978). «Patterns in Strategy Formation» (PDF). Management Science. 24 (9): 934–48. doi:10.1287/mnsc.24.9.934. S2CID 154086210. Archived from the original (PDF) on 19 October 2013. Retrieved 31 August 2012.
  7. ^ Henrik von Scheel and Prof Mark von Rosing. Importance of a Business Model (pp. 23–54). Applying real-world BPM in an SAP environment. ISBN 978-1-59229-877-8
  8. ^ Kvint, Vladimir (2009). The Global Emerging Market: Strategic Management and Economics. Routeledge. ISBN 9780203882917. the global emerging market.
  9. ^ Stacey, R. D. (1995). «The science of complexity – an alter-native perspective for strategic change processes». Strategic Management Journal. 16 (6): 477–95. doi:10.1002/smj.4250160606. S2CID 16794111.
  10. ^ Terra, L. A. A.; Passador, J. L. (2016). «Symbiotic Dynamic: The Strategic Problem from the Perspective of Complexity». Systems Research and Behavioral Science. 33 (2): 235–48. doi:10.1002/sres.2379.
  11. ^ Morin, E. (2005). Introduction à la pensée complexe. Paris: Éditionsdu Seuil.
  12. ^ a b c Rumelt, Richard P. (2011). Good Strategy/Bad Strategy. Crown Business. ISBN 978-0-307-88623-1.
  13. ^ «American Rhetoric: John F. Kennedy – Cuban Missile Crisis Address to the Nation».
  14. ^ Henderson, Bruce (1 January 1981). «The Concept of Strategy». Boston Consulting Group. Retrieved 18 April 2014.
  15. ^ Liddell Hart, B. H. Strategy London: Faber, 1967 (2nd rev ed.) p. 321
  16. ^ Wilson, Andrew (2012). Masters of War: History’s Greatest Strategic Thinkers. The Teaching Company.
  17. ^ Freedman, Lawrence. (2 September 2013). Strategy : a history. Oxford. ISBN 9780199349906. OCLC 858282187.
  18. ^ Giles, Lionel The Art of War by Sun Tzu. Special Edition Books. 2007.
  19. ^ a b Porter, Michael E. (1980). Competitive Strategy. Free Press. ISBN 978-0-684-84148-9.
  20. ^ Kiechel, Walter (2010). The Lords of Strategy. Harvard Business Press. ISBN 978-1-59139-782-3.
  21. ^ Ghemawat, Pankaj (Spring 2002). «Competition and Business Strategy in Historical Perspective». Business History Review. 76 (1): 37–74. doi:10.2307/4127751. JSTOR 4127751. SSRN 264528.
  22. ^ Chandler, Alfred Strategy and Structure: Chapters in the history of industrial enterprise, Doubleday, New York, 1962.
  23. ^ Mintzberg, H. Ahlstrand, B. and Lampel, J. Strategy Safari : A Guided Tour Through the Wilds of Strategic Management, The Free Press, New York, 1998.
  24. ^ a b c Stigall, Dan E.; Miller, Chris; Donnatucci, Lauren (7 October 2019). «The 2018 U.S. National Strategy for Counterterrorism: A Synoptic Overview». American University National Security Law Brief. Washington DC. SSRN 3466967.
  25. ^ «2018 U.S. National Strategy for Counterterrorism» (PDF). whitehouse.gov. October 2018 – via National Archives.
  26. ^ «Counter-terrorism strategy (CONTEST) 2018». GOV.UK. Retrieved 20 October 2019.

External links[edit]

Look up strategy in Wiktionary, the free dictionary.

The word strategy is quite common in our daily language. However, it is an important business concept. Therefore, we have compiled the list of definitions of strategy. Subsequently, we have provided a simple explanation of what strategy means.

Origins: what strategy means for the military

Strategy as a concept originated in the military. The word comes from ‘stratēgia‘ which means ‘generalship.’ Most importantly, the success of military conquests depends heavily on the approach of attack or defense. Similarly, corporate strategy in the simplest of terms is how you compete and thrive against competing firms.

What strategy means?

Most notably, great thinkers like Sun Tzu and Kautilya wrote war treaties. They described policies, ploys, and tactics to win battles. There are some similarities between competing against an enemy and a business rival. Therefore, some scholars have transposed many of these concepts to business context. However, there are some key differences between the military and business use of the word:

How is military strategy different from corporate strategy?

Military strategy Corporate strategy
It is defined as the ‘art’ of assesment, planning and execution of military assets and operations to improve the chances of winning. It is essentially an approach developed by a firm to create competitive advantage.
‘Plan’ oriented Broader orientation than simple planning
Primarily driven by political aims It is primarily driven by economic aims
Immediate moves are called tactics Immidiate moves are called market ploys
Comparison of military and corporate strategy

Definition of strategy

Corporate strategy is defined as an approach developed by a firm to create a competitive advantage.

Broadly speaking, a strategy is an action plan that links our objectives to the ways of achieving it. When we devise the strategy, we should include vision. Vision is a clearly defined long term goal. Vision is the guide for developing missions for the firms. Thereafter, we work on the mission through well-coordinated actions.

There are many different definitions of strategy. We have enlisted some of them below:

Strategy as a long-term goal: Chandler

“Strategy is the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals” — Chandler 1962

Managers in the early 1960s started using the strategy as a management term. Alfred D. Chandler wrote the book ‘Strategy and Structure’ in 1962. In this book, he described the success process of companies like General Motors and Dupont. He attributed their success to their ‘strategy.’ Though he used this term, he did not define it clearly as to what strategy means for the firms.

Strategy as means to an end: Liddell Hart

The art of distributing and applying military means to fulfill the ends of policy — Liddell Hart 1967

Here we have included the definition of strategy by Lidell Hart. He was one of the most famous historians who worked on strategy. Some of his concepts can be transposed into the management strategy. Most importantly, he tried to unify the concept of strategy from military as well as a political perspective.

Strategy as decision making: Kenneth Andrews

“Strategy is the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals” —Kenneth Andrews, 1971

Kenneth Andrews was also a professor at Harvard Business School. He was one of the founders of Strategy. His first book was The Concept of Corporate Strategy, which came out in 1971. He opined that strategy aligned the decision making with the firm’s objectives. Thereby, he propagated the case-based method of teaching. In this method, the students learn by getting into the shoes of the decision-maker. It is also interesting to note that he published widely and holds a second PhD in English.

Vision driven strategy: Steiner & Miner

Strategy is the formulation of missions, purposes, and basic organizational goals, policies, and programs to meet them, and the methods needed to ensure that strategies are implemented to achieve organizational objectives.” — Steiner & Miner, 1977

Steiner and Miner published an important book ‘Management policy and strategy’ in 1977. They provided new directions to this field in this book. Firstly, they presented a number of relevant cases and readings. Secondly, the book was also important as a textbook covering the fundamentals of strategy.

He has not just defined what strategy means but also provided with a roadmap. A roadmap that discusses the process of understanding how to advance towards the objectives of the organization.

Strategy is about differentiation: Michael Porter

“It means deliberately choosing a different set of activities to deliver a unique mix of value —Michael Porter, 1996

Michael Porter is one of the most prolific academics. Most notable for Porter’s 5 forces. However, this definition comes from his essay ‘What is strategy?’. He published it in 1996. Wherein, he proposed two ways to stay competitive.

Firstly, firms can do something different from their competitors.

Secondly, firms can do things differently than their competitors.

A firm needs to perform activities differently than others. The firm sets a unique position in this way. As a result, it can remain competitive. However, there is mounting criticism of this approach of defining strategy. The pursuit of one perfect competitive position may a narrow way of defining strategy.

What strategy means for firms today

We have looked at various definitions of strategy. Finally, can we summarize what the strategy means for the firms?

Business strategy definition

Modern academics define strategy into one or more of the three broad areas:

  1. Differentiating from the competition
  2. Exploring ways to improve your value proposition
  3. Emergent approach where you adapt to the environment

Michael Porter is the father of the differentiation approach of strategy. Above all, he proposed the concept of being a cost leader or a differentiator. Firms can achieve this through various mechanisms.

Secondly, firms can explore new ways to delivering value. The advent of Industry 4.0 presents new opportunities. Firms must be proactive in assessing how they can leverage it.

Thirdly, emergent approach proposed by Prof Henry Mintzberg. He opined that strategy is more about how we adapt to changing set of internal and external variables.

FAQs on definitions of strategy

What is the origin of strategy?

Strategy comes from Greek word ‘stratēgia‘ which essentially represents the art of the general or ‘generalship.’ Therefore, we can say that origin of strategy is from the military.

What strategy means?

Corporate strategy is defined as an approach developed by a firm to create a competitive advantage.

What does corporate strategy means?

Corporate strategy is defined as an approach developed by a firm to create competitive advantage

1

a(1)

: the science and art of employing the political, economic, psychological, and military forces of a nation or group of nations to afford the maximum support to adopted policies in peace or war

(2)

: the science and art of military command exercised to meet the enemy in combat under advantageous conditions

b

: a variety of or instance of the use of strategy

2

a

: a careful plan or method : a clever stratagem

b

: the art of devising or employing plans or stratagems toward a goal

3

: an adaptation or complex of adaptations (as of behavior, metabolism, or structure) that serves or appears to serve an important function in achieving evolutionary success

foraging strategies of insects

Synonyms

Example Sentences



They are proposing a new strategy for treating the disease with a combination of medications.



The government is developing innovative strategies to help people without insurance get medical care.



a specialist in campaign strategy

Recent Examples on the Web

And the key part that is missing from Project Texas’ mitigation strategy is control of the algorithm.


ABC News, 26 Mar. 2023





But Notre Dame’s stop-Miller-at-all-costs strategy left room for other players, who capitalized on open looks and kept the game close while Miller struggled.


The New York Times, New York Times, 25 Mar. 2023





Recently, Harrington has delved into more entertainment strategy projects with NBC and Peacock, including the shows A Friend of the Family and Love Island USA.


Hannah Kerns, Peoplemag, 24 Mar. 2023





Several senators on the panel, including Alaska Republican Sen. Dan Sullivan, questioned VanHerck about Arctic priorities and strategy as the committee considers the fiscal year 2024 defense authorization package.


Riley Rogerson, Anchorage Daily News, 24 Mar. 2023





In this city-survival strategy game that launched in 2019, gamers attempt to keep the lights and the heaters on by carefully using their resources in an alternate version of the 19th century.


Chuong Nguyen And Samuel Axon, Ars Technica, 24 Mar. 2023





Communication is the action center, which helps if there’s a need to change direction or pivot strategy.


Amber Burton, Fortune, 24 Mar. 2023





Since their creation in 2013, the military police have racked up a reputation for torture and extrajudicial killings as a part of its brutal Mano Dura, or iron fist, strategy against gangs.


Seyward Darby, Longreads, 23 Mar. 2023





Talty also will oversee projects such as podcasts and documentaries, as well as AL.com’s strategy on newsletters as well as other emerging ways to reach new audiences.


Al.com Staff, al, 23 Mar. 2023



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These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘strategy.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

Etymology

Greek stratēgia generalship, from stratēgos

First Known Use

1779, in the meaning defined at sense 1a(1)

Time Traveler

The first known use of strategy was
in 1779

Dictionary Entries Near strategy

Cite this Entry

“Strategy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/strategy. Accessed 14 Apr. 2023.

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