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Without an effective strategy, a company (or organisation) will not achieve its purpose. It is an article of faith both with Alexis de Tocqueville (1994) and Rosenau (1999) that strategy is the most critical aspect of an organisations' decision-making processes. While there are many different forms of strategy, it is true to say that business strategy is, in truth, the only truly strategic function of the business. Are there other functions that should be considered? Yes, organisations should also set clear, measurable goals (or deliverables), define clearly what success means to the organisation, and create stakeholder value. These are all parts of strategy, but they are so basic and required to running any business as to be considered, so to say, "non-strategic."
An organisation's purpose is to create value for those for whom they exist. This is where the whole-hog business strategy approach falls apart. The purpose of an organisation is not to create value for shareholders. It is, traditionally, to create value for consumers, shareholders and employees.
That is, when strategy is defined as a course of action for achieving an organisations' purpose, it necessarily means that strategy is statements in an organisation's communication and decision-making processes. It is these that give strategy form and substance. And it is here that consultants find that some businesses in isolation struggle to communicate clearly about their organisations' purpose and mission, let alone write a mission statement.
Other functions are important, certainly, but without an intelligent and effective strategy, the other functions serve the purpose. For example, if a business is managing well, its strategy should deliver good results to shareholders. If a business has employed a strong leadership team, it will employ a sound business process that will deliver a resilient, and successful organisation. Good strategy doesn't replace these principles, but without them, good strategy cannot be effective. Perhaps the most pronounced difference between western strategy and eastern strategy is this: while western strategy is about seeking advantage, eastern strategy is about seeking harmony. d2c66b5586