Why Is Strategy Important to Business Essay
School of Business and Management
MT460-01 Management Policy and Strategy
Dr. Carrie A. O’Hare
July 11, 2012
Unit Two Assignment – Why is Strategy Important to Business? While it could be argued that as students while we may not view the path we are following as a strategy, in truth we are, even if we haven’t codified it as such and if asked if we were ever involved strategic planning, may very well say no. In reality though we have, even though it may not be on a grand scale, it is the plan for our direction and future. This action is at the core of strategic management and strategy. It is this planning …show more content…
1. Formulate the company’s mission, including broad statements about its purpose, philosophy, and goals.
2. Conduct an analysis that reflects the company’s internal conditions and capabilities.
3. Assess the company’s external environment, including both the competitive and the general contextual factors.
4. 4. Analyze the company’s options by matching its resources with the external environment.
5. Identify the most desirable options by evaluating each option in light of the company’s mission.
6. Select a set of long-term objectives and grand strategies that will achieve the most desirable options.
7. Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies.
8. Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies, and reward systems is emphasized.
9. Evaluate the success of the strategic process as an input for future decision making. (Pearce & Robinson, 2011, pp. 3-4)
10. As can be seen from these tasks they are a blueprint for how a company plans for its future, continues its development and tracks its success or failure in meeting the goals that have been set. By having this information available it is easier to track the company’s performance and respond to any outside pressures that may be detrimental to the success