Lesson 3º

 

 

 

 

 

 

 

THE ORIGIN OF STRATEGY

 

A company's strategy, which today we understand as a regular concept, has its origins in military strategy. The term strategy comes from the Greek word stratos (army) and ag (to direct). However, the first time the strategy concept appeared it was not with the Greeks, but in the book by Sun Tzu “The art of war”, which I have already refered to in the introduction of this course.

Looking for similarities between military strategy and company strategy, we find the concepts of strategy and tactics. Strategy is superior and includes tactics. It tries to achieve a decisive advantage over the enemy. Tactics are directed towards a specific action. With tactics we win a battle and with strategy we win a war.

For this reason strategy is very important. Using strategy we make decisions with the following characteristics:

Important

They involve significant resources

They are not easily reversed

Despite the similarities that we have spoken about between military and company strategy. There are also important differences between them. In the military field, the main objective resides in defeating the enermy to win the war. In the company field you have to co-exist with the competition rather than eliminating them.