Strategy can be defined as the actions taken by managers to attain the goals of the firm.
For most firms, the preeminent goal is to maximize the value of the firm.
To maximize value of the firm, managers must pursue strategies that increase the profitability and its rate of profit growth over time.
Typically, strategies focus on profitability and profit growth
Profitability is the rate of return the firm makes on its invested capital.
Profit growth is the percentage increase in net profits over time.