Corporate Strategy Formulation
CORPORATE STRATEGY FORMULATION
Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. Strategy formulation is a part of a strategic management process that comprises of environmental analysis, formulation, implementation and evaluation and control. Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates.
Setting Organizations’ objectives The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives.
While fixing the organizational objectives, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions.
Evaluating the Organizational Environment
Environmental analysis involves performing an analysis of the internal environment of the organization including identification and evaluation of current mission, strategic objectives, strategies and results as well as major strengths and weaknesses. It also analyzes the organization 's external environment, including major opportunities and threats; and identifying the major critical issues, which are a small set, typically two to five, of major
Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. Strategy formulation is a part of a strategic management process that comprises of environmental analysis, formulation, implementation and evaluation and control. Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates.
Setting Organizations’ objectives The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives.
While fixing the organizational objectives, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions.
Evaluating the Organizational Environment
Environmental analysis involves performing an analysis of the internal environment of the organization including identification and evaluation of current mission, strategic objectives, strategies and results as well as major strengths and weaknesses. It also analyzes the organization 's external environment, including major opportunities and threats; and identifying the major critical issues, which are a small set, typically two to five, of major