Importance, Stages, Generic Competitive Strategies, & Options

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Strategy Questions

Answer 1: Strategy and Its Importance

Strategy refers to the long term direction and scope of an organization, which help the organization to allocate resources in order to achieve organizational aims and objectives in challenging environment. An effective strategy helps the organization to meet the needs of markets and also fulfill expectations of stakeholders in effective manner. Strategy plays an important role in any organization in order to achieve competitive advantages from the market. Every organization needs to create strategy in every stage of organization to fulfill the demand of customers in the market and successful operation in the competitive environment (Wittmann & Reuter, 2008).

Strategy in organization is very important because it helps the organization to create plan to achieve a specific vision and also helpful to differentiate organization from its competitors in a positive way. An effective strategy is also helpful to attract the customers in the market towards the products and services. With the help of effective promotional and advertisement strategy, company is able to influence the perception of customers and motive them to purchase the products and services. An effective strategy is also important for the organization to build and maintain market image in the market. In today's competitive era, with the help of strategy, organization introduces products and services and creates demand among the targeted customers in the market (Goldman & Nieuwenhuizen, 2008). A strategy gives the direction to the organization to create sustainable market environment in domestic as well as in international market. An effective strategy in organization demonstrates the superior customer values that help the organization to achieve competitive advantages in the market.

Answer 2: Process of Strategy

In order to craft and execute strategy, the five stage process is as follow:

Developing a Strategic Vision:

In this first phase of strategy crafting, manager develops the strategic vision of the company. The vision is a long term direction for the company to achieve organizational goals and aims. Strategic vision helps the manager to develop strategy according to the long term goals of the company (Thompson, 2006).

Setting Objectives:

In the next phase of strategy crafting, manager sets the objectives of the strategy. It can be helpful for the manager to define that how much and what kind of performance is expected, what the tools are and how much time it will take to complete (Matthews, 2005).

Develop Initial Strategy:

In this phase of strategy crafting, manager ...