Strategy Investigation Assignment 2022

Running head: STRATEGY INVESTIGATION
Strategy Investigation
Name of the Student
Name of the University
Authors note

1
STRATEGY INVESTIGATION
Table of Contents
Introduction....................................................................................................................2
Concept of Strategy........................................................................................................2
The traditional approach to strategy and strategy formulation..................................3
Limitations of the traditional approach......................................................................4
Concept of Business model............................................................................................5
Effectiveness of Business models..............................................................................5
Business models addressing the limitations of the traditional models.......................6
Recent approaches to Strategy Formulation That Compliments Business Model Use..7
Conclusion....................................................................................................................10
References....................................................................................................................11

2
STRATEGY INVESTIGATION
Introduction
Strategy formulation has been the part of business form it's initial days. The steps
types and process of strategy setting has been changed with the flow of time. These changes
happened for the renewed trends in business and marketing. Scope of business has increased,
and therefore, many entrepreneurs have entered the market with innovative ideas. This has
increased competition in the market. The companies are adopting the creative and unique
formulation of strategies to earn a competitive advantage. The modern concept of strategy
formulation includes the business models in it. These models are designed according to the
features and demands of a specific business. The use of traditional models is not completely
terminated from modern business contexts. But the innovative business models have
increased the advantages in the competitive markets. This study will highlight the concepts
of traditional business strategy formulation and its disadvantages. The business models of the
present days and their implications are another part of this report. Lastly, the report talks
about the recent strategy setting approaches that complement business models.
Concept of Strategy
Business strategy is the choices and process through which an organization wants to
achieve its set goals and objectives. It is the set of scope and direction of the organization for
long-term operations that helps in achieving advantages in challenging environments. The
need and expectations of the stakeholders and market are fulfilled through the strategic
management of the organizations1. The business contexts that strategy takes into account are
strategic directions, activities and programs in the organization, analyzing the competition of
the market, required resources, internal and external environment analysis.
1 Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education, 2017

3
STRATEGY INVESTIGATION
The traditional approach to strategy and strategy formulation
The traditional approach to strategy setting gives its importance to the environment
and its scope. According to this traditional approach of strategy formulation, the variation and
risks that are associated with the business environment could influence the business scenario
immensely. Therefore, the traditional strategy formulators concentrate on reducing the
uncertainty and unpredictability of business markets. The dependency of the organisation is
judged according to the investment size and how other environments could affect its
outcomes.
The strategic planning in the traditional approach has four steps. These are analysis,
vision setting, action plan and evaluation. This model of strategic planning could be applied
to any organisation of any industry. The first part is analysis, and this is done through some
models. The model was designed for the evaluation of external and internal environments.
Two important strategy formulation tools are PEST and SWOT. SWOT is used to examine
the strengths, weaknesses, opportunities and threat of a selected market. This analysis is
important to understand the market condition and what scope did the company have in that
market.