Tag: business

What is Strategy?

What is Strategy?

Strategy is the choice of one of several originally contrived opportunities for achieving a competitive goal. Strategies are custom made for a situation, beginning with the creation of original ideas. Some of these ideas will be judged to be possible. Some of these possibilities may then be judged to be strategic opportunities. The choice of a strategy is made from among these opportunities. To be strategic, a possibility must find the widest margin between risk and advantage.

Finding the widest margin implies that advantage must always outweigh risk. If a possibility is considered high risk, then it cannot be strategic since the best outcome is a high advantage…no advantage. Adopting this possibility is gambling. If an advantage is deemed low, then it can’t possibly outweigh risk, since risk can at best be low and a possibility presenting a low advantage can hardly be considered strategic. What strategists are looking for is either high advantage/low/ medium risk, or, medium advantage and low risk.

There is no way to quantifiably rate either advantage or risk as being either, high, medium or low. Leaders can only debate the evidence and assumptions associated with each possibility and decide.