Abstract—This article reviews some strategy formulation methodologies that are elaborated to achieve organisation's goals and objectives.
Key words— Strategy, Strategy Formulation, Top- down Methodology, Bottom- up Methodology, Porter Five Force.
I. INTRODUCTION TO STRATEGY AND STRATEGIC PLANNING
A 2007 survey of European and American firms reported that more than ninety-five per cent have employed a strategic planning process. According to this survey, strategic planning is a very important approach which is designed to create an efficient timely framework. This framework aims to guide and control firm’s actions over all internal and external limitations. (Lane et al, 2007)
Barta et al, (2010) believes that the success of strategic planning is related to firm's strategic management. There are two typical sides of strategic management; first is strategy formulation which is responsible about forming a suitable strategy for certain circumstances, and the second is strategy content which is the core of decisions.
To date, researches have mainly focused on either strategy formulation or alternative strategy content options. However, the traditional distinction between strategy process and strategy content has perhaps limited the ability of strategic management research to explain the determinants of organizational performance (Lane et al, 2007). Therefore, in this study will examine multiple formulation and content approaches and will analyse their impact on organizational performance as well.
In order to survive and compete in today’s business environment, organisations should update their processes, procedures and their strategic management. (Barta et al, 2010)
II. STRATEGIC MANAGEMENT
Like mentioned before, ...
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...Learning Technology. Association for Learning Technology, Vol. 12 (2)
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Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
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• Strategic management is fluid and complex. Change creates original combinations of conditions requiring shapeless non-repetitive responses.
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
Thompson, A., Strickland, A., Gamble, J., & Gao, Z. (2008). Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. Wiley and Sons.
Pearce J., & Robinson R. (2009). Strategic management: Formulation implementation and control (11th ed.) New York : McGraw-Hill Irwin.
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
There are different types of strategic planning that are currently in use, since this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy whereby the objective of the strategy is defined in advance and the main elements are designed and develop...
The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.
The reasoning of Grant (2008) highlights the distinction and the main point behind it: The reason why strategic management has been separated from the long term planning and the corporate planning category is partly to allow strategy to be separated from planning and that strategy formation should be emphasized as a management function. If strategy formation is viewed as a part of the management process, it is easier to understand how important role strategy plays within the organization (Grant, 2008, p. 482.). This already leads us to another issue, namely to the nature of the strategy formation process. As regardless whether a formal or informal solution is in the focus, it never comprises of one single decision. It includes both the pre-decision
Witcher, B., and Chau, S. V., 2010. Strategic Management: Principles and Practice. Cengage Learning EMEA.
Strategic implementation entails the application of deliberate management processes to achieve the desired results. Predominantly, the process is achieved through the selection of implementation approaches that are related to an organization’s structure, management of human resources, developing, decision-making and information processes, allocating resources, determining desirable ...