Strategy Formation is the beginning of the Strategic Process. The first task is to create a mission statement for the organisation. This statement specifies the scope of activities the business wishes to undertake a long with the markets the business wishes to serve. Strategy formation consists of three main processes, performing a situational analysis, self evaluation and competitor analysis in both the micro and macro environment. After these assessments are completed objectives are set, some are long term and others short term. This involves creating vision statements, mission statements, overall corporate objectives, strategic business unit and tactical objectives.
“Strategy is the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and fulfil stakeholders expectations”
(Thompson et al,2008)
Strategy takes place at different levels of the organisation, ranging from the overall business to the individuals working in it. The Different levels include Corporate Strategy which is concerned with the overall purpose and scope of the business to meet stakeholder expectations. As it can be heavily influenced by investors. i.e. the stakeholders; it is a crucial level. Corporate Strategy acts to guide the strategic decision making throughout the business. Business Level Strategy is the second level and it is how a business competes in a particular market, it is concerned about the decisions being made regarding product choice, customer needs being met, gaining advantage on fellow competitors by creating new business opportunities thus increasing competitive advantage and exploiting the new and old ideas, it is similar to the Strategic Business-Unit. However the SBU is a part of an organisation for which there is a distinct external market for goods or service that is different from another... [continues]
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