Strategy word derives from the greek word stratgos.

It is the sum of two words: stratos (army) and ago (leading).

It referred to a military commander.

It is originally a military term, in a business planning context.

Strategy means to why and how the plan will work, in relation to all factors of influence upon the
business entity and activity, particularly including competitors, customers, demographics,
technology and communications

Strategy is knowing the business you propose to carry out (Xenophon, Cummings, 1993: 134)
It stresses that strategy requires knowledge of the business, an intention for the future, and an
orientation towards action. It also emphasizes the link between leadership and strategy
formulation. Strategy is a direct responsibility of those in charge, not a spectator sport.

The pattern of major objectives, purposes or goals and essential policies or plans for achieving
those goals, stated in such a way as to define what business the company is in or is to be in and
the kind of company it is or is to be. (Kenneth Andrews, 1971)

It is concerned with both purpose and the means by which purpose will be achieved. It implies
that strategy must address the fundamental nature of the business in the future. This suggests that
strategy will be sensitive to values and culture as well as to business opportunity. It also implies
that managers are able and responsible for making deliberate choices about the future nature and
scope of their business.

Strategy is rule for making decisions (Igor Ansoff, 1987, 1965)

It distinguishes between policy and strategy. A policy is a general decision that is always made in
the same way whenever the same circumstances arise. A strategy applies similar principles but
allows different decisions as the circumstances differ.

Strategy is an Ideas and actions to conceive and secure the future. This definition highlights
that strategy requires thought about the future but also effective action to realize the conception.

In other words, strategy is about:

* Where is the business trying to get to in the long-term (Direction)
* Which markets should a business compete in and what kind of activities is involved in such
markets? (Markets; Scope)
* How can the business perform better than the competition in those markets? (Advantage)
* What resources (skills, assets, finance, relationships, technical competence, and facilities) are
required in order to be able to compete? (Resources)
* What external, environmental factors affect the businesses ability to compete? (Environment)
* What are the values and expectations of those who have power in and around the business?
(Stakeholders)