STRATEGY LEVELS IN A BUSINESS
Strategic management and planning is to improve a direction for an organization with determining the best mission according to the dynamics in the internal and external environment. In a European Union candidate country such as Turkey, Kosovo, and Bosnia, organizations improve an adaptive strategic management and planning in order to adjust European Union standards and legislation.
Proactive strategy is basically a long-term decision-making process which involves rational, analytical, sophisticated, and formal analysis. These strategies are being used to take organization’s prior decisions rather than giving reactions to the environmental factors. Many proactive strategies are for changing the environment. Building a sustainable or green business is a proactive strategy which will be an obligation for many organizations in future.
Reactive strategy is mostly short-term and less formal decision-making process in order to give reactions to the current developments. In contrast to proactive strategies, reactive strategies are taken for giving response to the environmental dynamics and improving appropriate actions. They are for adapting organizations to the changes in environment. Distance learning and online working can be a reactive strategy due to the current pandemic virus.
Organizational strategy is the combination of planned actions and long-term goals that organizations intent to accomplish. Each unit, department, or subsection has their own strategy which supports the main organizational strategy. McDonalds offer both global and local menus in order to be universal and adapt local tastes. With an organizational strategy, it has been aimed to be a global and locally sensitive food chain at the same time.
Competitive strategy is an action plan which is improved to gain competitive advantage and sustainability in the market. Whole Foods differentiates itself by adding more services and keeping its leadership in the market. In addition to the traditional grocery services, they promote customers to have a green lifestyle. Therefore, Whole Foods’ competitive strategy can be defined as differentiation.
