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Strategy#

Five Definitions of Strategy: Plan, Tactics, Paradigm, Positioning, Perspective#

Strategy is everywhere: whether it is the plan for personal life, the guideline for the growth and development of an organization, or various activities such as war, making friends, learning, dating, or even playing chess, strategy is needed.

This not only shows the importance and universality of strategy, but also demonstrates its complexity. To the point where when it comes to strategy, most people think that strategy arises from the spontaneous insight of strategists who have a comprehensive understanding of the situation, to the extent that they give up considering strategy as an object that can be studied.

So what exactly is strategy, and how can we apply different strategies to improve our strategic capabilities?

It is difficult to give a clear definition of strategy. More often, defining strategy is like a blind person touching an elephant, and the more diverse perspectives we have, the closer we may get to its essence.

Below, I will discuss the five definitions of strategy, or rather, the five perspectives of understanding strategy.

In this article, I will explain strategy from the following five perspectives: plan, pattern, outlook, positioning, and tactics.

The first two definitions of strategy: plan vs. pattern

Plan#

When we talk about strategy, we often associate it with planning, and images of a determined young person making an annual study plan at their desk or a group of well-dressed professionals huddled together in the office pointing at a PowerPoint presentation come to mind.

Regardless of the specific type of plan, this perspective that equates strategy with planning is a future-oriented perspective, that is, we are trying to predict and plan for the future, whether it is our own behavior or changes in the environment.

In this scenario, the definition of strategy is equivalent to a plan for the future.

Strategy is a long-term action plan aimed at achieving specific goals or objectives, while a plan is a detailed outline or step-by-step approach to implementing a strategy or achieving specific results.

Strategy is the best plan carefully chosen to accomplish a specific task or goal. This strategy involves practical thinking and is a part of planning.

Planning is a part of management. It is the first step in the management function. Planning is related to the future. Planning involves assumptions.
Comparison table

What is a plan?#

It is the second step after strategy, which means formulating a strategy by coordinating all plans to achieve a goal. Planning includes thinking about what to do next and how to do it.

They are operational plans, strategic plans, tactical plans, and contingency plans. Strategic planning is an important plan formulated to achieve a specific goal or purpose.

On the other hand, a contingency plan is a backup plan prepared to be used if the main plan does not work out as expected.

Main Differences Between Strategy and Plan#

Strategy is the first step, followed by a plan.
Strategy is the selection of the best plan and its implementation, while a plan is the drafting of a plan on its own.

Pattern#

However, if we shift our focus to the end of the day or the year-end summary meeting.

When we review our actions during this period, we almost certainly find that our plans always fall behind changes.

On the year-end report and to-do list, there are either a few task names that were not foreseen before, or the designer who planned all of this quietly crossed out the content that should have been completed.

At this point, when reviewing our actions during this period, we find that the strategy has already changed due to inefficient execution and sudden attacks of unexpected events:

Plan + Pattern#

So what is the relationship between plan and pattern? It can be described with a mathematical equation.

Plan = Deliberate plan + Speculative plan

Pattern = Plan - Speculative plan + Emergent strategy

In other words, a strategy that an organization or individual has truly achieved includes the most deliberate and practical strategy from the previous plan (which means not only being able to do it, but also actually doing it) and some strategies that have emerged later to deal with unforeseen or sudden events.

Control and Learning#

Planning (whether implemented or not) is essentially an attempt to control. To achieve complete success in planning,

the following conditions must be met:

1. The planner must have strong information acquisition and processing abilities in order to make accurate predictions.

2. The implementer must have precise execution capabilities.

3. The environment must be very stable with minimal changes.

However, in reality, these three conditions are rarely met.

Therefore, in addition to control, we must be prepared to face unexpected events. As a process of adapting to new things, it can also be understood as learning.

Therefore, in the entire process of designing, responding, and completing a strategy, we not only need to have good judgment of the situation and ourselves, but also need to have the ability to quickly adapt and respond to unexpected events.

This emphasizes the importance of learning ability and adaptability. Many times, we become obsessed with planning and imagine the future as a certain, unchanging, and controllable world, so we put ourselves on a clear and definite path from the beginning of the plan, neglecting the cultivation of learning ability or the preparation for deviating from the course.

Recommendations#

Based on the above model

1. On the one hand, consider your own characteristics, and on the other hand, consider the external environment.

2. Find the unchanging needs in external demands. We cannot always follow the ever-changing external environment, so it is crucial to discover those constant needs.

My recommendation is to participate in ancient activities such as reading, socializing, debating, and meditation. These activities have proven their value in every era.

As for learning, it is important to focus on those traits that are constant and always needed, such as cultivating perseverance, developing the ability to learn quickly, and building relationships with others. This is the best way to cope with a changing environment.

3. The earlier the development stage, the more capital there is for positioning.

Because in the early stages, many organizations and characteristics are not yet defined, not structured, and there is more flexibility in making changes, and the cost of creating new things is relatively low.

Strategy is Tactics#

Strategy formulation and strategy implementation

Strategy formulation is the process of formulating a strategy, while strategy implementation is the process of implementing that strategy. Strategy formulation focuses on choice and decision-making, while strategy implementation focuses on translating those choices into action and making changes.

Strategy implementation is simply the execution of your plan. Managing activities is also part of strategy implementation. There are several situations in which strategic plans are delivered. Strategy implementation is all the activities from the starting point to the endpoint of product delivery.

What is strategy formulation?#

Strategy formulation is the process of formulating plans and choosing appropriate things. The long-term goal of strategy formulation is to reach the destination with a perfect plan. Formulation involves planning, decision-making, resource allocation, doubt clearance, and time management discussions. Every process and plan to be achieved within a given time frame will be considered in achieving the goal.

Strategy formulation includes six steps. They are setting goals for the organization, evaluating the organizational environment, setting quantifiable goals, targeting under department plans, performance analysis, and strategic choice. Each step has a separate process and goals to be achieved within a given time frame. These steps are arranged in chronological order to maintain the correct sequence for better delivery of outputs.

Strategy depends on the problem and situation. Strategy formulation also depends on the problem, the ability of employees, and time. Considering the factors that affect strategy formulation is crucial. Organizational strength, employee potential, and limitations are the main factors to consider in strategy formulation. Quantitative goals need to be set for each employee in the organization.

The main differences between strategy formulation and strategy implementation

Resource planning and organization belong to strategy formulation, while the execution of these actions belongs to strategy implementation.

Strategy formulation can be done with a few people, but strategy implementation requires the cooperation of many people.

Strategy formulation is an initial process with logical ability, while strategy implementation is the next level process with leadership ability.

Strategy formulation requires more effort before action, while strategy implementation requires strength during the execution process.

Strategy formulation is an entrepreneurial activity, while strategy implementation is an administrative activity.

Strategy formulation and strategy implementation are the two most important stages in the strategic management process. Strategy formulation refers to the formulation of a combination of strategies and the selection of the best strategy to achieve the goals and objectives of the organization, thus achieving the vision of the organization. It involves many steps that are executed in chronological order.
On the other hand, strategy implementation refers to the execution of the chosen strategy, that is, translating the chosen strategy into action to achieve the goals of the organization. Many management professionals often use the two terms interchangeably. However, there are subtle differences between strategy formulation and strategy implementation.

Definition of Strategy Formulation
Strategy formulation is related to the formulation and design of strategies and the selection of the best execution strategy to achieve the desired organizational goals. It is the second stage of the strategic management process. The following are the three main aspects of strategy formulation:

Corporate-level strategy

Business-level or competitive-level strategy

Functional-level strategy

Strategy formulation involves assessing the current business strategy and identifying improvement measures. Identify the main areas where the business needs help from the external environment. In this stage, the current problems of the organization are addressed first. Alternative courses of action are prepared considering all the projects. After this, the corresponding strategies will be formulated for implementation, taking into account all the considerations.

Strategy Implementation Model#

It includes guiding the ongoing strategy so that it can work efficiently and taking corrective measures to improve its performance from time to time. It involves the following activities:

Resource allocation, such as people, materials, money, machines, etc.

Designing the organizational structure to handle new strategies.

Training talent.

Determining functional processes.

Designing systems within the organization.

The main differences between strategy formulation and strategy implementation

The following are the main differences between strategy formulation and strategy implementation:#

Strategy formulation refers to the design of strategies. Strategy implementation refers to the execution of the chosen strategy.

Strategy formulation puts all the forces in action before action, while strategy implementation focuses on managing these forces during the execution process.

Strategy formulation is a logical process, while strategy implementation is an operational process.
Strategy formulation emphasizes effectiveness, while strategy implementation emphasizes efficiency.
Strategy formulation is the responsibility of top management. In contrast, middle management is responsible for strategy implementation.
Strategy formulation requires intuitive skills. In contrast, strategy implementation requires motivational skills.
Strategy formulation is an entrepreneurial activity. On the other hand, strategy implementation is an administrative activity.
Strategy formulation and strategy implementation are the two most important stages in the strategic management process. Strategy formulation refers to the formulation of strategies and the selection of the best strategy to achieve the goals and objectives of the organization, thus achieving the vision of the organization. It involves many steps that are executed in chronological order.
On the other hand, strategy implementation refers to the execution of the chosen strategy, that is, translating the chosen strategy into action to achieve the goals of the organization. Many management professionals often use the two terms interchangeably. However, there are subtle differences between strategy formulation and strategy implementation.

Comparison of Strategy Perspectives

In the previous four perspectives, we discussed strategy from four different directions: before and after, internal and external. However, we neglected the "left and right" perspective, which is emphasized by the perspective of tactics.

Strategy can be understood as a tactic, specifically a strategy used to defeat opponents.

When strategy is understood as tactics, our perspective shifts to our competitors on the left and right, focusing on the process of competition with them. The Art of War is a typical book that sees strategy as tactics.

This part of the content can be studied in game theory.

The Integration of the Five Perspectives
All five perspectives are in play

Each of the five perspectives mentioned above is difficult to use alone and should be considered when formulating a strategy, but this consideration does not require equal treatment.

Therefore, the question that needs to be answered is: in different situations, which perspectives should we pay more attention to?

This depends on the situation we face.

Different strategic perspectives are relatively suitable for different environments.

## Strategy Perspective Comparison:#

1. When there are obvious competitors.

2. When the environment has a zero-sum game nature, where one side's victory means the other side's defeat.

3. When the environment has relatively certain rules.

4. When there is a high level of operability and a wide range of means that can be used.

Based on different situations, we consider different strategies to achieve the desired results.