Strategy Formulation

Crafting and executing strategy are the heart and soul of managing a business enterprise. But exactly what is involved in developing a strategy and executing it proficiently?

Strategy formulation is the process by which an organization chooses the most appropriate courses of action to achieve its defined goals.

The managerial process of crafting and executing a company’s strategy is an ongoing, continuous process consisting of five integrated stages. The model illustrates the need for management to evaluate a number of external and internal factors in deciding upon a strategic direction, appropriate objectives, and approaches to crafting and executing strategy.

The first three stages of the strategic management process make up a strategic plan. A strategic plan maps out where a company is headed, establishes strategic and financial targets, and outlines the competitive moves and approaches to be used in achieving the desired business results.