Businesses need direction, a plan to compete, and organizations of the tactical methods. These are all the realm of strategy.

Strategy is very difficult to define, as it is used in so many contexts to apply to different things.

We provide the below explanation to help you understand how it is used in business.

Specifically, we define strategy as an orientation toward specific goals or objectives. Strategy is carried out through a plan of organized actions.

Regardless of the specific definition that you assume – developing a strategy or strategic plan involves research and planning.

Various Stages of Strategy

In the simplest terms, strategy is an approach to problem solving which entails the following stages:

• Diagnosis: Identifying the problem or coming up with a problem statement that elaborates on the nature of the goal.
• A Guiding Policy: Ideas, rules, allocation of resources to resolve the problem or inch towards the goal.
• Coherent Actions: Execution of the plans that have been conceived of to address the problem or achieve a particular goal.

Strategy can be further broken down into two main parts.

• Formulation: The Diagnosis and Guiding Policy stages make up the first part of strategizing for a goal.
• Implementation: Setting the plans into motion, executing all the steps leading up to the resolution of the problem or attaining a desired result happens at the Implementation stage.