Strategic objectives are base for any succesfull business.Company with distincly formulated objectives demonstrates their goals and desires that are suposed to be accomplished with the implementation of the right strategy.Strategy can be defined as a combination of procedures,policies and approaches that are related to the long term success of a business.
Depending on their postition companies can choose a defensive or offensive strategy. Defensive strategies have aim to ensure the survival of the company by avoiding the risk, and minimizing any chance of failure. Implementaion of this kind of strategy request reduction in number of employees, production, investments even withdrawal from the certain markets and selling the company assets in some cases.The companies that are trying to achieve stability will most likely decide to go for defensive strategy. They can be defined as a strategies that are not always implemented on purpose, but present a response to a crisis situation (Waters 1995). This strategy can be succesfull in shor-term perspective since it is limiting the company to respond to certain changes in environment.
On the other hand offensive strategies consider development, expansion and growth as a priority( Cassia 2010). Activities considering offensive strategy require a lot of investments and are followend with a lot of uncertainites.They can be very challenging but also innovative which leads to expansion of a company.As they are based on development, companies that are choosing this type of strategy are the ones that are looking to further expand an develop,through entering the new market, introduction of a new products,services and working methods, so those companies are always in the search for opportunities and new solutions for their problems.
Time is one of the most important strategic factors which makes speed of making decision as one of the company assets(de toni). It is assumed that whether the business will be succesfull or not largely depends on the speed of environmental changes and changes in customer behaviour so in order to stay competitive companies need to respond to those changes in appropiate time as well to be flexible and quickly adapt to them.
However those uncertain changes are causing risk when it come to strategic decisions.Most companies are trying to avoid risk, so most of them dont have clear approach on how to handle it. Strategic risk considering the implementaion of objectives is important, nevertheless its impossible to control all factors.To gain advantage over competition, company need to implement offensive strategy which leads to higher risk levels but it also increases advantage.