Strategy formulation and implementation process

Strategy formulation and implementation process

Strategic planning process consists of the following stages:

Step1: Develop Mission and Objectives

Mission is the organizations purpose and fundamental reason for existence. Before Formulating the strategy, the organization has to develop clear mission and objectives

Step 2: Diagnise Internal and external Environment

In this diagnosis. The external environment is scanned for technological development and changes in market condition.

Step 3: Situation Analysis

Include SWOT. The information required fopr conduting situational analysis ca n be derived from a variety of sources such as government reports, journals. Customers, suppliers, consultants and association meetings.

Step 4: Develop alternative Strategies

Develop Alternative strategies considering external and internal environment, diversification, joint ventures strategic alliance, globalization, retrenchment and liquidation are some of the possible alternative strategies

Step 5: Formulate Strategies

This step can further be categorised into three stages

            Formulate Corporate Level Strategy

            Formulate Business Level Strategy

            Formulate Fuctional Level Strategy

        Step 6: Implementing Strategy

Strategy implementaion is the process of translation of strategies and policies into action through the development of programmes, budgets and procedures.

[Strategy may be implemented by Middle Level and Lower Level Management]

An account of various steps involved in planning

            Perception of opportunities

            Establishing objectives

            Planning premises

            Identification of alternatives

            Evaluation of alternatives

            Choice of alternatives

            Formulation of supporting plans

            Establishing sequence of activities