What is Strategy
A strategy is a way of doing something. It is a game plan for action. It usually includes the formulation of a goal and set of action plans for accomplishment. It implies consideration of the competitive forces at work in managing an organization and the impact of the outside environment on organization actions.
Peter Drucker & Management by Objectives (MBO)
According to Peter Drucker, Management by Objectives (MBO) essentially involves three steps:
- Setting a mission or purpose
- Setting goals or objectives
- Determining action plans
- Achieve the goals or objectives
The strategic focus accepts these three basic ideas of MBO but goes beyond them by giving explicit recognition to both the outside and competitive environments.
Strategy is defined as the formulation of organizational missions, goals, and objectives, as well as action plans for achievement, that explicitly recognize the competition and the impact of outside environmental forces.