Here is a term paper on the ‘Strategy of an Organisation’ for class 11 and 12. Find paragraphs, long and short term papers on the ‘Strategy of an Organisation’ especially written for school and college students.
Strategy of an Organisation
Term Paper Contents:
- Term Paper on the Meaning of Strategy
- Term Paper on Understanding the Meaning of Strategy
- Term Paper on the Features of Strategies
- Term Paper on the Classification of Strategies
- Term Paper on the Formulation of Strategies
- Term Paper on the Essentials of a Good Strategy
- Term Paper on the Development of Strategy
Term Paper # 1. Meaning of Strategy:
Strategy is a game plan the management is using to stake out a market position, conduct its operations, attract and please customers, compete successfully and achieve organisational objectives. It involves managerial choices among alternatives and signals organisational commitment to specific markets, competitive approaches and ways of operating.
It is the determination and evaluation of alternatives available to an organisation for achieving its objectives and mission and the selection of the alternative to be pursued. This term has been adapted from military and being increasingly used in business to reflect broad overall objectives and policies of an enterprise. They are modified plans or policies to meet a particular situation in a competitive situation in the market.
Koontz and O’Donnell define strategies most often “denote a general programme of action and deployment of emphasis and resources to attain comprehensive objects.” Dalton McFarland defines strategy as, “Executive behaviour whose purpose is to achieve success for the economy or personal goals in a competitive environment, based on the actual or probable actions of others”.
Robert N. Anthony defines strategy as resulting from “The process of defining on objectives of the organisation, on changes in these objectives, on the resources used to attain these objectives and on the policies that are to govern the acquisition, use and disposition of these resources. A.D. Chandler defines strategy as “the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources to carry out these goals”.
This definition stresses the role of a strategy in terms of goal formulation. Theo Haimann says that “Strategy is an interpretive policy. It is a policy that has been formulated by the top management for the purpose of interpreting and shaping meaning of other policies.”
All these definitions consider strategy as a very comprehensive concept. It is defined as the dynamic process of determination of basic long-term goals and objectives of an enterprise. It involves the formulation of necessary policies and the adoption of selected courses of action necessary to translate objectives and goals into performance results.
It defines the business mission in terms of balancing the opportunities and risks in the enterprise’s external environment with resources, personal values and competence within the enterprise.
Term Paper # 2. Understanding the Meaning of Strategy:
There is no single, universally accepted definition of strategy. Different authors and managers have different definitions, depending on how they understand the subject. Experience has shown that it is better not to provide a precise definition of what strategy is; rather the emphasis should be on understanding issues that underlie various definitions and then see which definition holds up better in a specific context.
Understanding Strategy:
Two key ways to understand strategy will be to:
i. Examine the dimensions of strategy;
ii. And define criteria for evaluating an effective strategy.
Quinn provides a framework for both. For example, with regard to dimensions of strategy, he suggested four aspects, viz:
(a) Strategy contains three essential elements:
(i) Goals and objectives to be achieved,
(ii) Key policies that shall guide actions, and
(iii) Action programmes that are to be initiated to accomplish the goals;
(b) Good strategies are formulated around a select number of concepts and thrust areas. This is needed for cohesion, balance and form;
(c) The strategy should help in building a position that can withstand unforeseeable external forces; and
(d) In an organisation, there is a hierarchy of related and mutually supporting strategies.
For a strategy to be effective, it must have the following key characteristics:
(a) Objectives and goals that are dearly stated and understood, are decisive and attainable;
(b) There is scope for initiative and freedom of actions-the chosen strategy should also enhance commitment;
(c) It should enable mobilisation and use of resources at decisive points in order to ensure success and enhance the superiority of the firm vis-a-vis the competition;
(d) It should have flexibility and maneuverability to facilitate the alteration of a course of action and also to minimise the fixed allocation of resources to defend the firm’s position in the market;
(e) It must be championed by a committed leadership; in other words, the interests and values of key managers must match the needs of their role;
(f) The strategy must make use of speed, secrecy and intelligence to initiate a surprise attack on opponents, with a view to altering the relative competitive position;
(g) The strategy must protect the resource base of the organisation as well as the key operating points from attacks by competitors.
Andrews perceives strategy as a ‘common thread’ between a firm’s present and future product markets which, if carefully defined, can dearly spell out where the firm is heading. This common thread can be seen when the firm pursues such strategies as market penetration, market development and product development (in all of these three strategies, there are either market or product linkages).
The common thread can also be described as ‘synergy’, which, according to Ansoff4, leads to a ‘2+2=5’ effect. Such a synergy is realised when a firm seeks a particular combination of the product market postures whose combined performance is greater than the sum of their individual performances. Such synergies can be generated in sales, operations, investment and management.
Mintzberg describes 5P’s of strategy as plan, ploy, pattern, position and perspective. Strategy is a plan since it spells out a conscious and intended course of action to deal with a situation. Strategy is a pattern, in a stream of actions taken by a firm, which implies a consistency in managerial behaviour and thought processes. It needs to be noted that strategy as plan and strategy as pattern can be different; for example, plans may not be ‘realised’ while a pattern may emerge without a formal plan. Mintzberg also introduces the concept of ‘deliberate’ strategy, which is really the ‘realised’ strategy just mentioned, and its scope is less than the ‘intended’ strategy as planned.
Term Paper # 3. Features of Strategies:
The features of strategy are:
(a) It relates the organisation to the environment.
(b) It is an action to meet a particular challenge, to solve a particular problem or to attain a desired objective.
(c) It is forward looking in nature.
(d) It is formulated by the top management.
(e) It is flexible and dynamic.
(f) It involves the assumption of calculated risks.
(g) It is an action plan to face competition.
(h) It is a means to an end and not an end in itself.
(i) It may require a contradictory action.
(j) It is generally long-term in nature but short range moves are also specified in it.
Term Paper # 4. Classification of Strategies:
Authorities like William Glueck, Koontz O’Donnell have classified strategies. The acceptable classification has been attempted by Steiner and Miner.
They have specified three types of strategies:
(a) Master strategies
(b) Programme strategies
(c) Sub-strategies.
(a) Master Strategies:
Other name grand strategies. This refers to the entire pattern of the company’s basic purpose, objectives, policies, and specific resource deployment. It is similar to the long range planning process. Their object is to give a unified direction to the organisation and implies commitment of resources. It may relate to areas like finance, marketing, human resources etc.
(b) Programme Strategies:
They are more specific and the employment of resources is formulated to achieve organisational objectives. They act as guides to thinking and action and give support to unified planning in certain areas.
(c) Sub-Strategies:
Other name minor strategies. They are more detailed and oriented towards deployment of resources to achieve specific objectives. They give direction and guidance to decision making and action.
Term Paper # 5. Formulation of Strategy:
In the formulation of strategy the points to be considered are:
(a) It must be appropriate in the light of available resources.
(b) It must be workable.
(c) It must involve acceptable risks.
(d) The time of action plan must be appropriate.
(e) The action plan must be based on reliable anticipation of future trends and conditions.
(f) There should be perfect co-ordination between objectives and strategies.
(g) Strategies must fulfill ethical and social responsibilities.
Term Paper # 6. Essentials of a Good Strategy:
Strategy is a pragmatic plan of action to achieve desired goals.
A sound strategy must satisfy the following conditions:
(a) Internal Consistency:
Strategy must be consistent with the goals and policies of the organisation. Strategies of different areas are to be integrated into a strategic framework. Lack of consistency will create problems in implementation.
(b) Consistency with Environment:
This means the strategy must be consistent with the external environment.
It has two dimensions:
(i) Static and
(ii) Dynamic aspects on the static side it means the capability of meeting the environment.
On the dynamic side it means the potential of the strategy to take on the changing conditions. The selected strategy should enhance the confidence of the organisation to meet the challenges of the environment.
(c) Appropriation in the Light of Available Resources:
The strategy should consider the available resources. A realistic estimate about the resources is to be made. Here the term resources refer to men, money and materials. Further it includes existing resources and the resources it can command. In formulation of strategy the limitations of the resources is to be considered. The idea is to make a better use of the available resources in the best possible manner and not over-stretch and over-strain the resources.
(d) Acceptable Degree of Risk:
A strategy always assumes risk. It covers a long future horizon and it seeks to cope with complex environment. The assumption of risk should be within the bearable capability of the enterprise. Resources should not be committed irrevocably, nor should they be concentrated on a single or narrow range of ventures. There should be a match between risk and returns financial and otherwise.
(e) Appropriate Time Horizon:
Time is the essence of any strategy. A good strategy not only provides what objectives to be achieved but also indicates when these objectives are to be achieved. The time factor is determined by the objectives to be achieved, environmental conditions, resource capability and judgment of the management.
(f) Workability:
It must be realistic and capable of implementation. It must be feasible and should produce the desired results within the constraints and parameters known to management. Strategy is to be set by considering quantitative measures (volume of sales and profit, growth rate, asset formation) with qualitative criteria like the degree of confidence with which the strategy is implemented. It must be realistic and relatively simple and intelligible at the level of interpretation and implementation.
Term Paper # 7. Development of Strategy:
Strategy, as defined above, can be developed in an organisation under three alternative modes:- 1. Entrepreneurial Mode 2. Adaptive Mode 3. Planning Mode.
1. Entrepreneurial Mode:
Under the entrepreneurial mode, one strong leader takes bold, risky actions on behalf of his firm.
The key characteristics are:
(a) There is an active and in depth search for new opportunities;
(b) The firm being an entrepreneurial one, there is a centralisation of power in the hands of the CEO;
(c) The strategy is aimed towards achieving a dramatic improvement in performance, even though there may be uncertainties in the environment; and
(d) Growth is the dominant objective.
2. Adaptive Mode:
In the adaptive mode, the strategist accepts the status quo and the lack of clear objectives, and tends to ‘muddle through’ by taking remedial measures and small steps that are very close to the present ways of doing business. There is a tendency to avoid uncertainty and the emphasis is on solving short term, pressing problems rather than developing long-term strategies. Faced with disparate interest groups within the organisation, the strategist concentrates on reducing differences in opinion and tries to solve conflicting problems sequentially rather than considering their inherent inconsistencies.
Four key observations can be made on the adaptive mode:
(a) Since many a time there is a difficulty in reaching a consensus on the goals to be achieved, strategy-making essentially turns out to be a division of power among the members of a coalition within the organisation;
(b) There is an emphasis on developing a reactive solution rather than making a proactive search for new opportunities;
(c) Decision-making follows an incremental, serial process;
(d) Most decisions tend to be disjointed.
The manager who follows an adaptive mode is aware that a piecemeal, incremental approach may not be conceptually sound or dramatic; yet he is intelligent enough to appreciate that the approach is useful in tackling the staggering difficulties he faces in a world that is too complex for him.
3. Planning Mode:
The planning mode is characterised by the following:
(a) It involves anticipatory decision-making;
(b) There is normally a set of interdependent decisions rather than a single one;
(c) Its aim is to enable the firm to achieve a desired state in the future by initiating some deliberate strategy.
Mintzberg identifies the following three features of the planning mode:
(i) The major role of the analyst in strategy-making;
(ii) Emphasis on assessment of costs and benefits of competing proposals;
(iii) The attempt to integrate various strategies and associated decisions within the organisation.
From the above, it is clear that authors and managers have acquired different perceptions of what strategy is all about depending upon the approach they had followed to probe the subject. It is now accepted that while a formal, systematic planning is useful to develop a strategy, one should also be aware of the influence of psychological, behavioural and power relations on strategy formulation.
Such an awareness is necessary since the existence of multiple goals, the politics of strategic decision, managerial bargaining and negotiation processes, the sacrifice of a maximising objective in favour of a satisfactory one, the role of coalitions in strategy formulation and implementation, and the practice of ‘muddling through’ are all organisational realities.
Since so many variables are to be considered while determining the strategy to reduce uncertainty, a suitable approach would he to proceed flexibly and experimentally from broad concepts to specific commitments through a process called ‘logical incrementalism’. Such a process-which is conscious, proactive, purposeful and involves good management-helps managers develop an integrated strategy, duly taking into account the formal planning techniques and information that is available, the political and power structure of the organisation as well as its underlying behavioural aspects.