COMPANY STRATEGY - KEY ELEMENTS

Company Strategy is a combination of  long term  vision, direction and intended means of achieving them.

The goal of company strategy is to help achieve a long term sustainable and competitive advantage.

The Key elements of a Company strategy are

1. Vision
2. Mission
3. Value Statement

Other Elements  are

1.       Organization Structure

2.       Strategic Plan

3.       Company Resources

4.       Factors  of success.

Vision  - Sets direction for the future and identifies major challenges.  Summarizes broad strategic focus of the Organization. Deals with Future Propositions.

Mission – Provides broad guidelines on how to realize the Vision. The key difference between Vision and mission statement is that  Vision statement spells out future course of direction, whereas mission guides the organization in achieving common goals. Mission statement is created more frequently than a vision statement.

Value Statement – Prescribes the principles that company will follow to achieve  its Vision and Mission.

All organization follows a set of values that defines ethical and moral benefits. Value statement is not explicitly stated but taken to be a part of Vision and Mission statements.

Factors of Success – Essentially defines Companies Short term Goals.

Organization Structure influences Company strategy. In a Broader perspective, organization structures are classified  as  Functional, Projectized and Matrix.

Company Resources (Human/Material) also Influence Company Strategy. Strategic Formulation exercises helps in identifying the need for acquisition of strategic resources. Effective Resource Utilization is important as identifying themselves.

Strategic Plan – Plays a vital role in company strategy. Strategic Plan provides with the actual proposal for using resources  to achieve success factors. This Plan helps realize Vision and Mission.