The term strategy is of Greek origin. Strategy. Strategos or the art of the general in war, coming from the fusion of two words: stratos (army) and agein (lead, guide).
As is known, the application of strategic planning dates from the 60s of the 20th century and is coined by Alfred Chandler in the United States. The evolution of the term strategy in relation to application over the years is worth assessing.
In the Larousse dictionary strategy is defined as the art of directing military operations, the ability to direct. Here the reference to the emergence in the military field is confirmed, which refers to the way to defeat one or several enemies on the battlefield, synonymous with rivalry, competition; However, it is necessary to specify the usefulness of strategic direction not only in its meaning of rivalry to defeat opponents but also in terms of providing organizations with a guide to achieve maximum effectiveness in the administration of all resources in the fulfillment of The mission.
The concept of strategy is the subject of many definitions, which indicates that there is no universally accepted definition. Thus, according to different authors, definitions appear such as:
- Set of relationships between the internal and external environment of the company A set of objectives and policies to achieve broad objectives The dialectic of the company with its environment. (Ansoff, 1976) A way to conquer the market. The statement of the way in which the objectives will be achieved, subordinating themselves to them and to the extent that they help to be achieved. The best way to insert the organization into its environment.
The concept of strategy in 1944 is introduced in the economic and academic field by Von Newman and Morgerstern with the theory of games, in both cases the basic idea is competition.
Later, in 1962, it was introduced in the field of management theory, by Alfred Chandler and Kenneth Andrews, and they define it as the joint determination of the company's objectives and the lines of action to achieve them. In the definition made by Andrews there is an aspect worth highlighting, and it is the explicit statement made by the author of his concept about the importance of other values for companies, not necessarily economic, such as, for example, human solidarity. the love of nature, honesty and other values that exalt people and therefore must be taken into account when analyzing human behavior in the organization.
H. Igor Ansoff in 1976, defines the strategy as the dialectic of the company with its environment. This author considers that planning and strategic direction are different concepts, raises the superiority of the second.
Tabatorny and Jarniu in 1975 state that it is the set of decisions that determine the coherence of the company's initiatives and reactions to its environment.
Charles Hoffer and Schendel in 1978 point out that strategy is "the basic characteristics of the match that an organization makes with its environment."
All the authors cited above defend the idea of the theory of competition or rivalry, which shows the influence of the term and its military origin, this idea was accentuated in 1982 with the work of Michael Porter on competitive advantages.
KJ Halten (1987): «It is the process through which an organization formulates objectives, and is aimed at obtaining them. Strategy is the means, the way, it is the how to obtain the objectives of the organization. It is the art (skill) of intermingling the internal analysis and the wisdom used by the leaders to create values of the resources and abilities that they control. To design a successful strategy there are two keys; do what I do well and pick the competitors I can defeat. Analysis and action are integrated into the strategic direction ”.
Henry Mintzberg, in that same year, raises in his book Five Ps for strategy, five definitions with "P":
- Plan. Consciously defined course of action, a guide to face a situation. Ploy. Maneuver in Spanish, aimed at defeating an opponent or competitor. Pattern, of behavior in the course of the actions of an organization, consistency in behavior, even if it is not intentional. Position, identifies the location of the organization in the environment in which it operates (type of business, market segment, etc.). Outlook. It relates the organization to its environment, which leads it to adopt certain courses of action.
According to George Morrisey the term strategy is often used to describe how to achieve something. He says that he has never understood that use of the term very well, as it is contrary to his perception of a strategy as where a company is going in the future rather than how to get there.
Morrisey defines strategy as the direction in which a company needs to move to fulfill its mission. This definition views strategy as an essentially intuitive process. How to get there is through long-term planning and tactical planning.
What is strategy? It is the direction in which a company needs to move to fulfill its mission (George Morrisey)
According to Menguzzatto and Renau: the business strategy "makes explicit the general objectives of the company and the fundamental courses of action, in accordance with the current and potential means of the company, in order to achieve its insertion in the socio-economic environment."
James Stoner, in his book Administration in 1989 points out: «the authors use different terms: long-term planning, general planning, strategic planning. There will surely be greater agreement on five attributes of strategic planning.
- Addresses fundamental issues; Provides a framework for more detailed planning and ordinary decisions; Assumes a longer time frame; Helps direct the organization's energies and resources toward high-priority activities, and Is an activity high-level, in the sense that senior management should be involved. Operational planning tries to do those things well, efficiency. "
“Strategies are general programs of action that carry with them commitments of emphasis and resources to implement a basic mission. They are patterns of objectives, which have been conceived and initiated in such a way, with the purpose of giving the organization a unified direction. H. Koontz. Strategy, planning and control.
«From an organization, policies and sequential actions towards a cohesive whole. A well-formulated strategy helps the 'marshal' to coordinate the organization's resources towards a 'unique, viable' position, based on their internal relative competencies, anticipating changes in the environment and contingent movements of 'smart opponents'. " R. E Quinn. The strategic Process. Concepts. Contexts, Cases (1991).
… »Strategic planning is the process of determining which are the main objectives of an organization and the criteria that will govern the acquisition, use and disposition of resources regarding the achievement of the aforementioned objectives; these, in the process of strategic planning, include missions or purposes, previously determined, as well as the specific objectives sought by a company »GA Steiner. Senior Management Planning (1991).
"The definition of competitive strategy consists of developing a broad formula of how the company is going to compete, what its objectives should be and what policies will be necessary to achieve those objectives." M. Porter. Competitive Strategies. (1992).
In the following video, Professor Michael Porter answers the questions: How is strategy defined? and what is not strategy? providing very interesting concepts:
Harper and Linch "Establish a dynamic anticipation system in which differentiating business strategic aspects are highlighted and grouped within the framework of an open environment, seeking to develop a business culture that supports the competitive advantages that the company has." (1992)
Ohmae (1993) "the behavior by which a corporation positively differentiates itself from its competitors, using the corporation's relative strengths to better meet consumer needs."
F. David, in his book Strategic Management, states: «a company should try to carry out strategies that obtain benefits from its internal strengths, take advantage of external opportunities, mitigate internal weaknesses and avoid or lessen the impact of external threats. In this process lies the essence of strategic direction. "
«The frequency and unpredictability with which changes in the context take place make the practices of traditional planning unchanged today, so successful in many countries until the early 1960s. Strategic management has taken the place of strategic planning. Managers, public or private, must be trained to face storms avoiding risks and taking advantage of opportunities. " E. Saravia. CLAD Seminar. (1994).
As can be seen, all the cited authors partially coincide in their definitions; However, two fundamental trends can be clearly seen.
The first refers to the dynamics of the company with its environment; the second, defends the art of generating objectives, programs and policies and the way to achieve them as a way to fulfill its mission.
The Doctor of Science and Professor Fermín Orestes Rodríguez González and the Professor Sonia Alemañy Ramos of the Coordinating Center for Management Studies of the Ministry of Higher Education point out in this regard: strategic management should not be seen as a set of concepts, methods and techniques that they can be taught and learned at the skill level. It is more a combination of philosophical and behavioral foundations located at the level of knowledge and attitudes, both personal and professional, and that has profound and significant implications for the culture of organizations and future positions.
The most important thing about strategic management is not its tools, but the "Strategic Intent" (IE) of those who practice it. With the tools but without the EI little is achieved, since it can even overcome the lack of some strategic tools.
How can strategic direction help energize culture and new ideas?
- Raising awareness that "strategy" implies changes Building a strategic "vision" Investing in "strategic capacity" Convincing the need for an analysis of the current situation that reveals: The strong and weak internal aspects of the organization The opportunities and threats external to the organization Building future scenarios Assuming flexibility as a principle Handling conflict and resistance to change.
Samuel Certo and Paul Peters define strategic direction as the continuous, repetitive and transfunctional process aimed at maintaining an organization as a whole, appropriately coupled with the environment in which it operates.
The Master in Management Beatriz Chacón defines strategic direction in the following way: it is a proactive and outgoing work philosophy, with the broad participation and commitment of workers, which encourages change and creativity, is based on probabilities and risk; from knowing and taking advantage of internal and external advantages and counteracting the disadvantages, promoting the establishment of challenging and realistic objectives, relying on a logical sequence of strategies and tactics that lead to obtaining tangible and intangible benefits. (1999)
The concept shows the importance that the author gives to the participation of workers as a key element in the management process, to the socio-psychological aspect of the organization as a way to achieve the strategic approach. E rnesto Che Guevara, when addressing the issue of planning, pointed out: “the plan is profoundly democratic in its implementation because a plan made without the participation of the people would be a cold, bureaucratic plan. A seriously threatened plan. In the criteria provided by the Heroic Guerrilla, the importance that she gives to the participation of the workers in the management process can be appreciated.
If the enunciated concepts are observed well, three tendencies can be clearly perceived: the first, the concepts that revolve around the dynamics of the organization with the environment (the term environment is mentioned in 11 of the mentioned concepts); the second, the formulation or achievement of objectives (mentioned in 8 concepts) and a third, which refers to the competence (mentioned in 8 concepts).
This writing is not precisely to provide a definition but if asked we would suggest that:
The strategy is a management tool that facilitates procedures and techniques with a scientific basis, which, used in an iterative and transfunctional way, contribute to achieving a proactive interaction of the organization with its environment, helping to achieve effectiveness in meeting the needs of the public objective to whom the activity is directed.
Bibliography
- Menguzato and Renau., The strategic direction of the company an innovative approach to management. SPI, 427 pp. Mintzbeg, Henrry., The fall and rise of Strategic Planning. / Harvard Business Review, Canada, _pp 4- 18.Mintzberg, H., Design of efficient organizations./ Ed. El ateneo, Madrid- Argentina, pp.. Mintzberg, Henrry., The art of shaping strategy./ Management Brochures, No 5 1988, CCED, MES, Havana Cuba, 24 pp. Morrisey, George. Strategic thinking. Build the foundations of your planning. / Ed. Prentice Hall Hispanoamericana, Madrid, Spain. 119 pp..Odiorne, George S. Management by objectives. New system for management. / Ed. Limusa, Mexico, 247 pp. Porter, Michael., Competitive advantages. / Ed. Free Press, New York, sp. Porter, Michael., What is strategy? / Brochures Management, No8 1998, CCED, MES,Havana Cuba, 44 pp..Quin, Robert E. Wisdom for change./ Ed. Prentice Hall Hispanoamericana.Sc. Osmani Flores Espinoza./ CETDIR. ISPJAE, 89 pp. Sallenave, Jean, P., Management and strategic planning. / Grupo Editorial norma SA, Colombia, sp. Steiner, George A Strategic Planning. What every leader should know. 11th Edition. / Ed. Compañía Editirial Continental, SA, Mexico. 360 pp..Stoner, James. Administration, 5th Edition SPI, SPAdministration, 5th Edition SPI, SPAdministration, 5th Edition SPI, SP
