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Strategy should not be confused with Vision and/or Mission Statements. As we will see later few, if any, of these statements contain tangible evidence that can be measured accurately or monitored, and are mostly open to broad speculation and misleading personal interpretations. In contrast, company strategy is the foundation upon which investment is justified and Shareholder Value augmented. When formally managed, strategy can be considered the core intellect driving company Value.
The significance of Company Strategy in relating to the Macro and Market Environments
Author: Hugh Sutherland2014/12/11
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Given such prodigious significance; it is surprising to note how little attention is given to company strategy in day-to-day decision making. Traditionally, business strategies tend to be held as closely guarded secrets - confidential information only referenced behind “closed door” or quarterly Board meetings. Furthermore, corporate strategies are seldom committed in writing, or challenged as still appropriate in terms of current trading perspicacity. In an article that originally appeared in Business to Community, 56 per cent of senior executives agree their biggest challenge is ensuring that day-to-day decisions are in line with strategy and allocation of resources in a way that supports the strategy.
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Although strategy has been around for centuries and well documented, it does not receive sufficient recognition as being indispensable in driving a successful business enterprise.
No, strategy is not some earth-shattering, next-big-thing it’s a live entity that continually monitors the environments in which the business operates, while relating to essential premises on which the company is based; differentiating itself from competition and threats that would otherwise negatively affect Shareholder Value. As such, strategy must operate in a framework of relationships existing within the scope of the Macro and Market Environments. These are the environments over which your company [Micro Environment] has no control and must therefore adapt.
Turning Theory into Reality
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