Strategy formulation process
Strategy formulation process
The success of an organisation in an increasingly competitive environment is dependent on the strategy which will differentiate an organisation from its competitors. In this context it is useful to consider strategy formulation as part of a strategic management process that comprises three phases: diagnosis, formulation and implementation.
Strategic management is an ongoing process to develop and revise in future oriented strategies that allow an organisation to achieve its objectives, considering its capabilities constrained at the environment in which it operates.
Strategic diagnosis, more strategy formulation, includes: performing a situation analysis analysis of the internal environment of the organisation including identification and evaluation of current mission strategic objectives strategies and results plus major strengths and weaknesses analysing of the organisations external environment including major opportunities and threats and finally identifying the major critical issues which are a small set (typically 2 to 5) of the major problems, threats, weaknesses and opportunities that require particular high-priority attention of the management
External analysis includes analyses of: customers, competitors, market and environment.
The purpose of these analyses is to identify existing and emerging opportunities, threats, trends, strategic uncertainties and strategic options.
Internal analysis includes performance appraisal and examination of: organisational strengths and weaknesses, problems constrained and strategic options.
A business strategy specification includes: the product marketscope the selection of a set of strategic options that include the value proposition, assets and confidences, and strategies for functional areas
A selection should consider scenarios, ROI prospects, sustainable competitive advantages, organisation's vision, strategy of feasibility and other than strategies.
Strategy choice is
The success of an organisation in an increasingly competitive environment is dependent on the strategy which will differentiate an organisation from its competitors. In this context it is useful to consider strategy formulation as part of a strategic management process that comprises three phases: diagnosis, formulation and implementation.
Strategic management is an ongoing process to develop and revise in future oriented strategies that allow an organisation to achieve its objectives, considering its capabilities constrained at the environment in which it operates.
Strategic diagnosis, more strategy formulation, includes: performing a situation analysis analysis of the internal environment of the organisation including identification and evaluation of current mission strategic objectives strategies and results plus major strengths and weaknesses analysing of the organisations external environment including major opportunities and threats and finally identifying the major critical issues which are a small set (typically 2 to 5) of the major problems, threats, weaknesses and opportunities that require particular high-priority attention of the management
External analysis includes analyses of: customers, competitors, market and environment.
The purpose of these analyses is to identify existing and emerging opportunities, threats, trends, strategic uncertainties and strategic options.
Internal analysis includes performance appraisal and examination of: organisational strengths and weaknesses, problems constrained and strategic options.
A business strategy specification includes: the product marketscope the selection of a set of strategic options that include the value proposition, assets and confidences, and strategies for functional areas
A selection should consider scenarios, ROI prospects, sustainable competitive advantages, organisation's vision, strategy of feasibility and other than strategies.
Strategy choice is