Is Strategy an Essential Component of Management?

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Is Strategy an Essential Component of Management?

It seems reasonable and common for any organizations to have their own strategy in achieving their organization goals aligning their mission and vision within operations. As one of the most important management practice, strategy is currently playing a dominant role in the everyday lives for managers. Managers are generally expected to have strategic thinking while planning and framing activities (Philips & Dar 2009). In the following essay, the importance of strategy as a component of management will be discussed. Many literature has been focusing on the argument that strategy is needed within organizations in order to set their direction and to compete with other competitors, however, some has also pointed out that the absence of strategy can be considered vital in certain circumstances (Mintzberg 1987b).

First of all, the definition of strategy should be clarified. Many works have been developing a view of strategic management which is focusing on ways that corporations develop their goals and direction. Chandler (1962, p.834) defined strategy as “the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out the goals.” On the other hand, Mintzberg (1987a) has observed and presented five definitions for strategy. They are: plan, ploy, pattern, position and perspective. He pointed out that most people consider organizational strategy as rational plans which are extensively simulated and well-coordinated as well as managed. However, he argues that strategy as a plan can also be a political ploy. For example, a kid may have a strategy to get over a fence, just as an organization or corporation may have one in order to capture their potential market. When strategy is a ploy, the kid may draw…...

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