Final answer:
Strategy is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.
Step-by-step explanation:
Strategy is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. It involves making choices about what markets to compete in, what products or services to offer, and how to allocate resources to achieve the desired outcomes.
For example, a company like Apple has a well-defined strategy of designing innovative and user-friendly products, targeting a premium segment of the market, and establishing a strong brand image. This strategy has helped Apple achieve superior performance and stay ahead of its competitors.
Other elements such as a company's credo (statement of beliefs or values), competency management (managing and developing employees' skills and abilities), and behavior modification (changing employee behavior to align with organizational objectives) are important organizational practices, but they are not synonymous with strategy.