Opportunities vs. Strategies
One of the topics that is usually misunderstood in my classes (case-based management courses) is the difference between opportunities and strategies. Students tend to list strategies instead of opportunities. By definition, opportunities are trends and factors in the external environment that are outside the control of the organization. Strategies on the other hand, are developed and adopted by organizations as means to achieve goals and take advantage of opportunities.
Identifying opportunities in the external environment is essential for developing effective strategies. Skipping this step (unintentionally) and listing strategies without examining and identifying opportunities first, can result in limited strategic options and lack of alignment between strategies and trends in the external environment. The confusion may come from the fact that these terms are used interchangeably in day-to-day conversations.
Let’s say you need a new car. You go to the closest dealership and purchase the first car suggested to you within your budget instead of researching what is available on the market. You are missing out on so many other options.
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