Can be defined as a single process to develop a sense of direction for the formulation of corporate strategy. The way is often described as a logical, step-by-step affair. But the result of which is a formal written statement. Which provides a definitive guide to the organization’s long-term intentions. So many people still believe the same. And they act as if this were the case, but this is a misinterpretation of reality.
Definition: Strategy formulation is an analytical process of confirming the best-suited course of action to meet organizational objectives and vision. And the formation of the strategy involves analyzing that environment. which involves the organization being operated and then making a series of strategic decisions about how the organization will compete. This ends the formulation with a series of goals or objectives and measures to advance the organization.
But this is not to dismiss the idea of adopting a systematic approach as described below. But it has been used to provide an analytical framework for strategic decision making and as a reference point for monitoring the implementation of the strategy. but this is explained in practice below, and also for reasons, how strategy construction can never be rational and linear. but this strategy has been described by more lay authors. Or some managers try to make it. But below are the following 10 strategies that you can consider.
10 Steps in Strategy Formulation Process, Systematic Approach
- To complete the mission, one must first define.
- Set the purpose.
- Define the specific capabilities of the organization in light of this analysis.
- Define the key strategic issues emerging from the previous analysis. These will be related to matters such as product-market scope, increasing shareholder value, and resource capacity.
- Conduct internal and external environmental scans to assess internal strengths and weaknesses and external opportunities and threats (a SWOT analysis).
- Analyze existing strategies to determine their relevance in the light of internal and external evaluation. Which may include gap analysis, to what extent environmental factors will be established, Which has not been changed, and what needs to be achieved? So what can be the interval in between? The analysis will also cover resource capacity, answering this question. Which human do we have enough human or financial resources available right now? Or which may be readily available in the future to enable us to achieve our objectives?
- Prepare an integrated strategic plan to implement strategies.
- Implement strategies.
- Monitor implementation and modify existing strategies or develop new strategies as needed.
- Set corporate and functional strategies to achieve goals and competitive advantage, taking into account key strategic issues. These may include business strategies for growth or diversification, or broad general strategies for innovation, quality, or cost leadership. Or they can take the form of specific corporate/functional strategies related to product-market segment, technological development, or human resource development.