What Is Strategy and Why Is It Important?

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What is Strategy and Why is it Important? When it comes to goals or expectations, having a strategy or game plan is a crucial factor in the success of achieving a goal or expectation. By not having a strategy or game plan in place, a person or business is simply setting itself up for failure. A person or a business can not go from one point to another without direction or by some means. Strategy is important for not only organizational success but also competitiveness. In order for an organization to succeed, the organization must have a strategy or an action plan in place for competing successfully and also operating profitably (Thompson et at., 2012). Although a company may want to succeed, without an organizational strategy, a company will not know how to compete successfully and generate profits. Organizations can set them apart from their competition by developing a strong competitive strategy that fits the company situation or business model, has the flexibility to evolve over time or is partly proactive and partly reactive. While a lot of organizations have face some difficulties caused by the global economic slowdown and declining consumer confidence in the United States, McDonald’s is an example of the contrary. McDonald’s has not only been able to develop a Plan-to-Win strategy that focused on “being better , not just bigger,” but McDonald’s was also able to execute its plan with success (Thompson et at., 2012). On one hand, a proactive company strategy is simply a strategy that outlines actions to improve a company’s financial performance and also secure a competitive advantage (Thompson et at., 2012). On the other hand, a reactive strategy is a company or an organizations adaptive reactions to unanticipated developments and fresh market conditions (Thompson et at., 2012). In order for an organization to have a competitive
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