Page 66 - GLOBAL STRATEGIC MARKETING

• Strategy is a form of management control. It is a long-term plan, which
guides behaviour along a predetermined route. At the operational

level it results in budgets and targets

• A clear strategy assists in the process of allocating resources, and
may provide a rationale for that allocation so that it is perceived to be

fair by organisation members

• It enables management to identify key strategic issues, which the firm
may face in the future, and prepare appropriate action

• Strategy performs a useful role in guiding the action of the constituent
parts of the organisation, as well as acting as an integrating
mechanism ensuring units work together. The integrating power of

strategy is a central feature of ‘strong’ corporate cultures, as
illustrated by firms such as IBM and Hewlett-Packard

• Leading on from that, strategy formulation can be an important
element in the process of social change. Strategic objectives are
achieved by changing the behaviour of employees. This is the
essence of organisational development programmes, used by such

companies as Shell, and explains the current vogue for the creation
of a strong corporate culture

The following diagram summarises the key points highlighted above and
what needs to be taken into consideration.