Internal Market Orientation and Strategy Implementation

2. Strategy: Background And Definitions

Academically, the field of strategic management is relatively recent, borrowing most of its theoretical background from economic and organizational theories. Early foundations include therefore Frederick Taylor´s scientific management, Max Weber´s bureaucratic organizations and Chester Barnard`s administrative functions and open system organizations (Coulter, 2013). As a result, acknowledging its military roots, many definitions of strategy have been suggested (e.g., Chandler, 1963; Porter, 1996; Mintzberg, 2007) that ultimately share similar dimensions. As such, strategy can be said to refer to a long term overall direction or orientation that guides the organization forward in all managerial levels.

It is however important to distinguish between concepts which are usually used as synonyms such as: business model, strategy and tactics. Casadesus-Masanell and Ricart (2011, p.107) suggest that all organisations have a business model but not all have a strategy. For these authors, a business model refers to the overall company logic and their system of choices and consequences. In turn, strategy would be the contingent plan to create a unique and valuable position involving a distinctive set of activities. And tactics represent the range of options available to compete which are determined by the chosen business models.