Distinguish between strategy and
strategic plan.
Strategy is an action that managers take to attain one or more
of the organization’s goals. Strategy can also be defined as “A general
direction set for the company and its various components to achieve a desired
state in the future. Strategy results from the detailed strategic planning
process”. A strategy is all about integrating organizational activities and
utilizing and allocating the scarce resources within the organizational
environment so as to meet the present objectives.
A
strategic
plan is a course of action to achieve long-range goals. Strategic plans
reflect the company’s direction and its purpose as stated in its mission
statement. In order to develop strategic plans, top management must develop and
use summary reports on finances, operations and the external environment.
Strategic plans influence the development of tactical plans.
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