The Concept of Strategy and the Strategy Formation Process

Abstract

We have revealed new insights by reviewing and integrating the definitions of strategy offered by leading scholars in the field. Part of the confusion surrounding the issue of strategy can be alleviated by separating the concept of strategy from the process of strategy formation. The concept of strategy is presented as a normative model that has validity for all firms. The process of strategy formation, however, is contingent on the firm's particular situation and can be described in terms of the wide variety of forms it takes in different organizations, depending on the firm's strategic objectives, its management style, its organizational culture, and its administrative structure.