ABSTRACT
Strategy is supposed to be the rationale for the existence of organizations, and to reflect, define and develop the ways in which products and services are delivered. However, there are major behavioural and perceptual pressures which have to be addressed as follows.
Strategy and policy are devised in response to the assessment and evaluation of the present position, status and strength of the organization; and the known, believed and understood state of the markets in which operations are carried out, and the wider business environment.
The issues involved in devising strategy and policy depend, in part at least, on the pressures exerted by powerful and influential stakeholders, the rates of return that backers demand, and the nature and expertise of the staff (see Box 21.1).
The development of strategy and policy requires evaluation and understanding of what the market is likely to be able to sustain, as well as the overall capability of the organization to fulfil specific needs and wants.
The evaluation of strategy involves establishing parameters based on what the organization sets out to achieve and why; the extent to which it achieves these purposes; and the nature of the managerial response to opportunities and pitfalls.
