Why do Organisations Need a Strategy?

So why do companies need a strategy? A strategy is the manner in which a company or organisation is going to trade, compete or operate. Without this, there is a lack of joined up thinking within the organisation that can lead to disjointed or chaotic operations. A strategy gives all business units, departments and individuals a role within the overall strategic goals of the organisation. 

A famous example of this was the response of a janitor at NASA who was asked by JFK what they did within the organisation:

"I'm helping put a man on the moon." - NASA Janitor

That is the answer of a person who understood the mission and vision of the organisation. 


To look at an example of a strategy, consider Tesla... 

 Tesla are an Electric Vehicle (EV) manufacturer that is trying to change the automotive industry. A founder and current CEO of Tesla has been quoted as saying:

"We will not stop until every car on the road is electric." - Elon Musk

This is a clear vision from the American tech-auto company. The strategy of Tesla consists of the following:

• Direct to consumer sales from retail stores in shopping centres and on the high street 
• Creating an infrastructure network to charge their vehicles in the most convenient way possible
• Self driving technology to ensure safe travel within their vehicles
• Second to none customer service including over night updates and servicing
• Differentiated vehicles with embedded tech.