The strategy generally involves setting goals and priorities, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how ends (goals) will be achieved by means (resources). The strategy is an organization's well-defined roadmap. It defines the overall mission, vision and direction of an organization.
The goal of a strategy is to maximize the strengths of an organization and minimize the strengths of competitors. Product, brand, marketing or operations strategies are just a few examples that contribute to the success of a company's overall generic business strategy. While multiple strategies entail the risk of conflicts between priorities and objectives, these risks can be reduced if properly managed. As such, a strategy is just one element of the overall strategic direction that leaders must define for their organizations.
Core values and mission are then taken into account when designing lower-level strategies, such as operational or marketing strategy. The success of a strategic plan can be evaluated by monitoring a number of key performance indicators (KPIs). At this level, vision and objectives become concrete strategies that inform how a company will compete in the market. That's why managers should make sure to periodically review the alignment between low- and high-level strategies.
However, functions such as marketing or finance will not effectively contribute to this generic strategy unless it translates into more specific lower-level strategies. The formation of these lower-level strategies that fall under a generic business strategy is called a strategy framework.