Strategy Formulation

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Strategy Formulation Objectives: Define strategy formulation Define the word strategy and formula and its purpose Understand the SWOT analysis and its relation to strategy formulation Learn the step by step strategy formulation Appreciate the importance of strategy formulation Define strategy formulation Strategy formulation: As defined by Andrew M. Pettigrew of United Kingdom, the formation of strategy in organizations is a continuous process. Specific dilemmas within the firm, or in the firm’s environment, may raise the organization members’ consciousness of strategy and allow us, as analysts, to think of strategy formulation as an intentional process built around certain discrete decisions; but strategy is being …show more content…

Now each of these try to demand and command attention in furtherance of their own cause. All these also can work towards reducing the gap between the capital investment and returns (profit/loss). It is prudent to manage these denominators in a way that reverses the trend and makes returns, a healthy multiple of capital investment. 2 Identify the source of advantage and exploit it: There are many sources of advantage for an entrepreneur -- two of the most important being, location and special capability. Now these are scarce commodities and any strategy plan conceived around attributes puts the organization ahead of the rest of the competition and positions you along with the best of the competition, and makes success that much less complicated. 3 Position the organization appropriately: Focus on the markets and the marketing factors that synch with the nature, culture, size and technological advantages and constraints. Determine and discriminate between the markets while allocating funds. The strategy should reflect a clear understanding of markets and should result in intelligent defining of the segments that could result in refined resource allocation. This should of course be preceded by microscopic market research at granular level to see direction of trends in those markets. 4 Do not follow the trends, but set one: Far too often it has been observed, that

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