ABSTRACT
This chapter discusses the concept of strategy, the relationship between strategy and tactics, the functions of a strategy and the way in which strategy creates a context for the implementation of the policy in the long term. Retailing is an industry that is very tactical by its nature. The changing circumstances, developments and dynamics in retail require a strategic approach within the retail sector. A strategy should clearly indicate what unique selling propositions the company has. Although a strategy basically represents a target situation, one should identify the objectives and, where possible, quantify. A strategy can play a very important role in motivating an organisation. A business strategy and a function strategy are necessary for the development of the strategy formulation. The strategic process is often considered as terminated on the time that the business strategy is adopted and communicated to the organisation.
