STRATEGY FORMULATION

The stage of strategic management that involves the planning and decision making that
lead to the establishment of the organizations goals and of a specific strategic plan.

It begins when executives evaluate their current position with respect to mission, goals,
and strategies.

Involves analysis of the organizational characteristics and assessing the external

environment and internal problems and integrating the results into goals and strategy.

Objectives of Strategy Formulation

ANALYSIS PLANNING
Thorough and broad. Clear view of the future.
Rational and objective. Grounded yet aggressive, realistic yet
includes perspective from many optimistic.
people. Accountability and personal
responsibility
Based on rigorous vetted models
and framework. Wide-spread support.

Why do organization make a Strategy Formulation?

To improve company policy, a product family, a specific product or service or an internal
process.
To achieve the desired organizational goals and objectives
To make market position.
To maintain and achieve competitive advantage.
To survive in changing market condition.

Formulation Drives Action