Table of ContentsExecutive Summary...........................................................................................................1Introduction........................................................................................................................2Step 1. Define the Organization........................................................................................2End Benefit.....................................................................................................................3Target Market.................................................................................................................3Advantages of Define the organization..........................................................................3Pitfalls.............................................................................................................................3Limitations......................................................................................................................3Step 2. Define the Strategic Mission.................................................................................3Advantages of Formulating Strategic Mission................................................................4Pitfalls.............................................................................................................................4Limitations......................................................................................................................4Step 3. Define the Strategic Objective...............................................................................4Advantages.....................................................................................................................4Pitfall...............................................................................................................................5Limitations......................................................................................................................5Step 4. Define the Competitive Strategy...........................................................................5Strengths and Weaknesses...........................................................................................5Advantages.....................................................................................................................5Pitfall...............................................................................................................................6Limitations......................................................................................................................6Step 5. Implement Strategies............................................................................................6Advantages.....................................................................................................................6Pitfalls.............................................................................................................................6Limitations......................................................................................................................6Step 6. Evaluate Progress.................................................................................................7Advantages.....................................................................................................................7Pitfalls.............................................................................................................................7Limitations......................................................................................................................7Conclusion.........................................................................................................................71
Executive Summary Strategy formulation is considered as the way to improve the future situation of theorganization. It is the action plan which helps the organization in determining itsstrategic objectives and goals. In this paper, we motive to identify the process ofstrategy formulation which helps the organization in formulating effective strategy planfor achieving their business objectives. In this firstly we discuss the different steps ofstrategy formulation which define the organization, strategic mission, strategicobjectives, and competitive strategies, implement strategies and evaluate progress.After this, we identify the advantages, pitfalls, and limitations of these steps which helpthe management in determining the importance of every step. Last we will provide aconclusion in which some suggestion and benefits of the strategic plan arerecommended to organizations. All this helps the business organizations to build itsbusiness strategies efficiently.2
IntroductionStrategy formulation is known as the process through which organizations select thebest alternative courses of action to fulfill their predetermined objectives. Strategyformulation is considered as an important process for the success of organizationsbecause it provides a framework for the activities that lead to the predetermined results.It is necessary for organizations to communicate their strategic plans with theiremployees so that they are aware of the organization's mission, purpose, andobjectives. Strategy formulation requires the high attention of management towardschanging the environment and should prepare itself for the potential changes that mayoccur in future (Bamberger, 2014). The strategic plan enables an organization toevaluate its allocate budgets, resources and also determine the efficient plan forenhancing Return on Investment (ROI).An organization which spent not enough time on formulating strategic plan will not beable to focus more on its employees. Organizations should be reactive in naturebecause it helps them in addressing unanticipated pressures. Strategy formulationneeds a defined set of six steps for efficient implementation. These steps are following:3
Found this document preview useful?
Related Documents
Crafting and Executing Strategy for MBA1094 Courselg...
|7
|1528
|478
Business Strategies Assessment (PDF)lg...
|14
|4326
|345
Report on Strategic Planning Process for an Organisationlg...
|12
|3785
|83
Strategic Planning for River Island: Processes and Impacts on Business Strategylg...
|13
|2714
|349
Candidate Mohamed Imran Mohamed Shakir Candidate No. 801031603 Submission Date 15th October 2016lg...