STAGES OF STRATEGY FORMATION AND IMPLEMENTATION.

Running head: STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
Stages of Strategy Formation and Implementation
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Introduction:
The modern business organizations are significantly subjected to the increasing
competition of the industry. The increment in the number of the new entries into the industry
is creating a state where the organizations are facing an intense competition. The intensity of
the market competition is forcing the organizations to form effective strategies in order to get
rid of the situation and in that case, the planning has great significance. The organizations of
the modern generation are observed to be significantly inclined to the scientific management
of the business operation in order to reduce the impact of the competition that has the
potential to make the survival difficult for the modern day organization (Bratton and Gold
2017). The paper is focused in identifying the fundamental stages of the strategy formulation
and the implementation. Along with that, the paper describes the role of the Human
Resources Managers in the formulation of the strategy and the implementation of them. The
paper is focused in the evaluation of the contribution of the HRM in incorporating ethics and
accountability to the employees of the organization. In addition to this, the paper provides an
in depth discussion on the role of the HRM in business planning during the change inside the
organization and analyses the usage of the four different business and contextual data that can
be utilised for the planning purposes.
Rational Strategy Model:
The rational strategy model is one of the widely used models for the planning
purposes inside the modern day business organizations. The model is considered to be
decorated with 5 steps dedicated for the purpose of the planning. One of the most renowned
researcher of the business planning, Nigel Taylor in the year 1998, through the creation of
“Urban Planning theory since 1945”, was able to comment on the stages of the model where
the researcher portrayed the definition of the problems and goals, Identification of the
alternative plans or policies, evaluation of the alternative plans or policies, implementation of

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the plans or policies and the monitoring of the effect of the plans to be the five steps of the
model. However in the modern business context, the concept of the model is observed to be
significantly changed.
The modern day business organizations are seen to consider the model as the process,
having various stages like strategic choices or options strategic analysis, strategic
implementation and the strategy evaluation and control. The strategic analysis section of the
model is concerned with the evaluation of the organization’s condition. The human resource
managers of the organizations are responsible of conducting the external and the internal
analysis of the organization for the strategic analysis (Armstrong and Taylor 2014). In order
to evaluate the internal condition of the organization, the managers of the organization are
responsible to conduct the Strength-Weakness-Opportunity-Threats (SWOT) analysis of the
organization. For the evaluation of the external condition of the organization, the managers
are liable to conduct the Porter’s five forces analysis and the PESTEL analysis.
For the strategic evaluation and the choice of the strategic option, the human resource
managers are responsible for the conduction of the Net Present Value (NPV), Internal Rate of
Return (IRR) and Payback evaluation. It is significantly important for the managers to
evaluate which strategic options to take in a situation. In the strategic implementation section,
the managers are in need to assess the suitable policies and strategies for the organization and
implement that in all the areas of the business (Ghezzi, Cortimiglia and Frank 2015). In the
strategy evaluation and control section, the managers are responsible for evaluating whether
the strategies formed by them are increasing the effectiveness of the workforce and are able
to achieve the actual goal or not. During this time, the managers are subjected to face
significant amount of challenges which they to overcome with effective strategy formation on
rewarding the employees for their work and at the same time penalising them for their
misconduct.

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The incorporation of the ethics and accountability into the operations of the
employees of the modern organizations are observed to be significant. The role of the HR in
triggering the incorporation is expected to cover the aspects like the formation of the
employment law guide and implementation of it, the formation of the code of professional
conduct and the implementation of it, the formation of the code of ethics and professional
responsibility (Rosemann and vom Brocke 2015). Apart from this, the managers are
responsible for producing ethical leadership and at the same time, they are expected to
portray justice and fairness through their decision making, may that be for a promotion,
penalisation or recruitment. The managers are in need to ignore the favouritism, nepotism and
cronyism to effectively and ethically manage the conflicts of the interests. The reduction in
the biasness in the decision making will be significant step from the part of the managers in
incorporating the ethics inside the organization.
Three Indicators for the Business Performance Evaluation:
The indicators for the business performance evaluations are observed to of two types,
quantitative and the qualitative. The evaluation of the business performances and the
identification of the key performance indicators are observed to be include the steps like the
establishment of a pre defined business process, the identification of the requirements for the
business process, precise qualitative and quantitative measurement of the results and
comparison with the desired goals and the investigation of the variations along with the strive
forward towards the achievement of the short term goals. Many of the business researchers
commented that the effectiveness of the business conduction increases with the identification
of such key performance indicators which re specific, measurable, achievable, relevant and
time phased (Parmenter 2015). The key indicators of the business performance depends on
various aspects of the business which are accounts, marketing and sales, manufacturing,
professional services, system operations, project execution, supply chain management, stock