MINISTRY OF EDUCATION OF THE KYRGYZ REPUBLIC
THE KYRGYZ-RUSSIAN SLAVIC UNIVERSITY
FACULTY OF INTERNATIONAL RELATIONS
FOREGN LANGUAHES DEPARTMENT
FORMULATION AND IMPLEMENTATION OF COMPETITIVE STRATEGY
Prepared by: Ekaterina Rapotina
Checked by: E. Donchenko
Bishkek – 2013
Strategy formulation guides executives in defining the business their firm is in, the ends it seeks, and the means it will use to accomplish those ends. Strategy formulation combines a future-orientated perspective with concern for the firm`s internal and external environment. A key theme of the discussing of external environment is the problem of deciding whether to accept environmental constraints or to maneuver around them. Strategic managers use internal analysis profiles to target competitive advantage they can emphasize and competitive disadvantage they should correct or minimize.
It gives special attention to the new vision that a firm must communicate in a revised company mission when it multinationalizes.
The chapter provides an overview of the benefits, and terminology of and the need for strategic management. The section stresses the key point that strategic management activities are undertaken at three levels: corporate, business, and functional.
Chapter I. Strategic management and formulation of business strategy
1.1. Strategy formulation Managing activities internal to the firm is only part of the modern executive`s responsibilities. The modern executive also must respond to the challenge posed by the firm`s immediate and remote external environments. The immediate external environment includes competitors, suppliers, scarce resources, government agencies and customers whose preferences often shift inextricably. The remote external environment comprises economic and social conditions, political priorities and technological developments, all of which must be