Crafting and Executing Strategy for MBA1094 Course

Crafting and
Executing
Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Explanation of purpose of strategy in an organization ...............................................................3
Steps of strategy formulation .....................................................................................................3
Explanation of competitive advantage with example of company ............................................4
Contrast what happens between strategy formulation and strategy implementation..................5
Explanation of the strategy evaluation process .........................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business strategy is defined as long-term plan for a company which helps the firm reach
desired future vision of the firm (Jin & et. al.,. (2017)). This present report describes the intent
behind strategy in a company and steps included in strategy formation. The concept of
competitive advantage is explained in this report with example. The activities between strategy
formulation and strategy implementation are contrasted in this report. The process of strategy
evaluation is explained in this report.
MAIN BODY
Explanation of purpose of strategy in an organization
The primary purpose of a business strategy is to set future direction of a company and
develop plan to attain the future direction. Business strategy provides a clear information about
the future of the company and ensures that every employee of the company understand and
follow the direction and mission of the company. This helps employees from loosing sight of the
vision of the company and attain business objectives in a timely manner.
Steps of strategy formulation
Strategy formulation refers to the process of deciding and demonstrating goals, mission
and objectives of a business firm and identifying suitable course of action to attain business
gaols, mission and vision. The various steps involved in strategy formulation are provided
below:
 Step 1; Define the organization and environment: This step involves looking at the
organization and understanding the external and internal environment of the company
(Khalifa, (2019)). Target market, consumers, product portfolio and potential challenges in
business environment are the main that need to be considered in the first step of strategy
formulation Analytical tools such as PESTEL, SWOT and Porter's fiver forces can be
used to examine business environment of the company in this step.
 Step 2; Define the strategic mission: This step involves construction of strategic mission
which offers clear view of long range outlook of the company (Steps to Strategy
Formulation (Read Only If You Want To Outcompete Competitors), 2019). The mission
of the company needs to include core business values, nature of business, vision, long-
term perspective and vision of the firm.