Does wod strategy have a definite meaning in business parlance - Essay Example

With such rethinking, new ways are devised to counter the threats. Alternatively, some new opportunities may emerge in the environment which had not been there in the past. In order to take advantage of these opportunities the company reassesses the approaches it had been following and changes its courses of action. These courses of action are what we may call strategies undoubtedly strategy is one of the most significant concept to emerge in the subject of management. It has emerged as a critical input to organizational success and has come in handy as a tool to deal with the uncertainties that organizations face.

It has helped to reduce ambiguity and provide a solid foundation as a theory of conduct business- a convenient way to structure the many variables that operate in the organizational context and to understand their interrelationship. When we think of long-term direction of an organization we immediately think of strategy. Matching of the resources and activities of an organization to the environment in which it operates is the basic requirement for strategy. This may be called as the search for strategic fit.

Strategic fit is developing strategy by identifying opportunities in the business environment and adopting resources and competences so as to take advantage of these (Porter, 1980). . Strategies exist at a number of levels in an organization. It is possible to distinguish at least three different levels of organizational strategy. Corporate level strategy (Andrews, 1987) is concerned with the overall purpose and scope of an organizational and how value will be added to different parts of (business units) the organizations.

This could include issues of geographical coverage, diversity of products/services or business units and how resources are to be allocated between the different parts of the organization. The second level can be thought of in terms of business unit strategy (Hall, 1978) which is about how to complete successfully in particular markets. The concerns are therefore about how advantage over competitors can be achieved; what new opportunities can be identified or created in market; which product or services should be developed in which markets; and the extent to which these meet customer needs in such a way to achieve the objectives of the organization-perhaps long term profitability or market share growth.

So where as corporate strategy involves decisions about the organization as a whole, strategic decision here need to be related to a strategic business unit (SBU). A strategic business unit is any part of a business organization which is treated separately for strategic management purpose. In public sector organizations a corresponding definition of a SBU might be a part of the organization or service for which there is a distinct client group. But confusion can often arise because an SBU may not be fixed in terms of an organizational structure.

It may not be a separate structural part of an organization. The third level of strategy is at the operating end