12. UNDERSTANDING STRATEGY

The concept of strategy is often misunderstood. Some define it as a long-term plan, while others see it as a set of action plans. Michael Porter, a professor at Harvard Business School and widely regarded as the father of modern strategy, defined strategy in organizations as a set of long-term choices made to distinguish oneself from competitors. While this definition is powerful as a high-level philosophy and captures the essence of strategy, it remains unclear to the public.

In my point of view — supported by extensive literature — the concept of strategy fundamentally revolves around achieving an objective (moving from point A to point B) by leveraging available resources within a broader environment or ecosystem.

The strategic statement that guides all upcoming strategic processes involves answering three critical questions, each beginning with “How?”:

1. How to get? – Acquiring the necessary resources or capabilities.
2. How to keep? – Sustaining and managing those resources effectively.
3. How to grow? – Scaling and optimizing for future expansion.

The framework, as shown in the next figure, highlights the dynamic interplay between internal capabilities (resources and objectives) and external environmental scanning (bounded by a dotted line), guided by a clear strategic statement to ensure direction, sustainability, and growth.

 

  

 

Article by Amr H. Abayazeed - April 18, 2025.