Approaches to strategy formulations: A content analysis of definitions of strategy

The importance of strategy has led scholars, consultants and managers to explore the term more intensively. From some of the important words used in the definitions of strategy, differences in various approaches to strategy formulation can be analysed and specific approaches can be identified. Keeping this in view, 273 strategy definitions were analysed using major nouns appearing in these definitions. The study obtained six distinct approaches to strategy formulation namely: the planning approach – related to long-term planning and execution to achieve organisation goals; fit approach – concerned with matching internal strengths and weakness with that of external opportunities and threats; emergent approach – involving adapting to change when needed; positioning approach – involving placing company in such a position so that it gains maximum advantage vis-à-vis its competitors; resource-based approach – identifying and utilizing key resources efficiently and finally, stakeholders' approach – protecting the interest of stakeholders. Using Content analysis, this study shows that each of the approaches emerged and dominated at different periods. This study also shows that during the last four decades, the positioning approach has been the most dominant approach followed by the resource-based approach.