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There are many different types of strategies. Strategies can be driven by technology, customers, competition, stakeholders, strategic relationships, organizational capability, organizational culture or personal vision. In some situations, each may be appropriate. In most situations, following just one to the exclusion of others will result in failure. However, in all cases, a market-driven strategy can be successful. In a market-driven strategy, all the different types of strategies are considered and the appropriate one, or mix, for the situation selected.
A strategic plan is composed of five elements:
Vision
Mission
Goals
Strategies
Values
For an organization a vision provides purpose. A mission defines the area of operation. Goals are objectives to be reached. The strategies detail how to accomplish the goals, within the mission, to make the vision a reality. Strategies are developed to take advantage of the opportunities, avoid or minimize the threats, and fully and effectively utilize the organization. Values establish priorities within the organizations in the execution of the strategies.
A strategy is the road map for change. Because of the interaction of the driving forces for change with customer needs, technological capabilities, and competitive responses, the market the organization wishes to serve is constantly changing. In order for the organization to remain competitive in a glocal (global and local) market, it must change to align its projects, resources, and culture to the redefined opportunity. The strategy is the link between the changing world outside the organization and the world inside the organization that needs to change.
The internal implications of the organization's strategy are enormous and must be addressed within the strategy. A strategy focused only on the outside world will not be effective or efficient. The organization's strategy calls for the organization, and thus the people in it, to change, and gives them the path. If the organization is motivated to change, change will result, and innovation will follow. If that innovation can be focused continually on the market, the organization will be successful.
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