What Is Strategy? Essay

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What is “Strategy”? By means of an intuitive approach, we may define “Strategy” as the path to go between conditions “A” and “B”. However, said in this way, in my opinion we can’t see it as a useful tool. Therefore, a Strategy that really can lead to the achievement of a hypothetical condition “B” should be described by other aspects; firstly, by the definition of a concrete objective (Goal); secondly, by the resources (or means) and finally by the concrete tasks (steps) that we need to succeed in order to achieve the major objective. So, we should have the following aspects to describe a “Strategy”: Objective or goal The objective of the “Strategy” must be a clear definition of the goal that we want to achieve. Resources or means What are the available resources that we can really move in order achieve the objective? Part of the strategy must be defined by some mechanisms that we can “manipulate” with the purpose of “control” other components. Let’s evaluate a simple example to clarify. An investment strategy may be defined as: “I want to have $ 1 million in my bank account by the end of the year by investing my US$ 500 thousand savings in Wall Street”. There’s a “controlled variable” as the amount of money we want to have in the end of the year. But this is not something that we can “manipulate”. We just can buy and sell shares; those are the variables that we can manipulate. Deeper than this, we can just manipulate the prices we propose to buy and the prices we offer to sell. Consequently, a Strategy must have a clear Controlled Variable and an implicit Manipulated Variable, as the variable that we can really act on it; In this case, I could define two types of variables that (normally) we must differentiate: a. Manipulated Variables – The ones that we can really act on them; b. Controlled Variables – The ones that allow us to know if we achieved the

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