Strategy


Strategy is a pro-active planning where a person anticipates other’s actions / reactions to one’s actions. It is called pro-active since strategy works like a move in the chess and the player anticipates other’s move before taking his / her move. Strategy has clear goals to be achieved and defines what would be present in the end.

Strategy can be equated with combats or war-like planning with complete involvement of the participants. Plans need to be modified / abandoned keeping with the ongoing developments while implementing a strategy.

Strategy vs. Plans

    • Both strategy and plan are for reaching the end results / goals;
    • Strategy answers “what needs to be achieved?” and “why it needs to be achieved?”
    • Plan explains “how the same needs to be achieved?” → defines procedures;
    • Strategy is more broader and long-term;
    • Strategy can have many plans to achieve the goals;
    • Strategy is more action-oriented whereas plans are more procedure oriented.
    • Worth to watch this video on youtube to understand the difference.

Strategy in Organisational Context

    • Organisation start-up strategy
        • How to start the organisation in the least time?
        • Getting approvals from Govt., etc.
        • Identification of location;
        • Arranging land, finance, manpower, machinery & other assets;
        • Construction of building, acquiring technology;
        • Creating organisation structure, building processes;
        • Start of commercial production and stabilisation thereafter.
    • Strategy for acquiring and stabilising the businesses
        • Identification of right business suitable for organisation’s goals;
        • Negotiating the best price;
        • Locating funding agencies;
        • Deal closure;
        • Change management and harmonising the new business with the existing business.
    • Strategy for product launch
        • Market survey;
        • Creation of product which matches the market needs (Research & Development);
        • Looking for best market price;
        • Build production capacity or locate sourcing partner;
        • Timing the launch;
        • Choosing the medium for launching;
        • Launching the product;
        • Stabilising the product.
    • Handling accidents / natural calamities, etc.
        • Accidents (e.g. fire, on-duty labour’s injuries);
        • Natural calamities (e.g. floods, famines, tsunami, etc.);
        • Terrorist attacks
        • Each of the above requires clear strategy of handling the situation in a particular manner.
    • Manpower strategic planning
        • Productivity linked incentives;
        • Resolving Labour unrest;
        • Keeping Staff turnover to minimum.
    • Lobbying with Government
        • Strategy for impressing Govt. and statutory authorities for taking favourable views towards organisation’s industry → demanding concessions or incentives, etc.
    • Customer identification and retention strategy
        • How to get new customers and retain the existing customers especially the key customers?
        • How to get repeat orders or referrals from the existing customers?
        • Quotation in a big tender requires thorough strategy;
        • Getting fresh business from a big customer:
            • Understanding the business model of the customer;
                • What it does?
                • How it does?
                • What are the key issues in working?
                • How the key decision makers take the decisions?
        • How the organisation’s product is different from others?
        • What would be the different pricing plans to be offered to the customer
    • Handling inflationary and deflationary market for building the turnover.

Some of the Process Implementation for better Strategic Planning

    • Plans to be made consisting of
        • Overall objectives to be achieved;
        • Checklists alongwith formats;
        • Person accountable for each step.

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