RESEARCH NOTE: BUSINESS STRATEGY FORMULATION
The very first step in launching a business is to formulate a strategy that takes into account the different levels of
Corporate, Business and
Functional, and the deep thinking it calls for.
This note focuses on the ingredients and process of business strategy formulation, as enumerated below:
1. Strategic Thinking
Strategic thinking is a synthesizing process, utilizing intuition and creativity, whose outcome is “an integrated perspective of the enterprise.
2. Strategic Management Process
It is the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources for carrying out these goals.
2.1. Mission
2.1.1. Vision
2.1.2. Strategic Intent
2.2. Objectives
2.3. External & Internal Analysis
2.4. Strategic Choice
2.5. Strategy Implementation
2.6. Competitive Advantage
3. Strategy - Environment Fit
The ‘classical’ approach to strategy formulation described in previous section though is most popular, it has limitations.
4. Framework for Formulation of Business Strategy
For most managers, mission and vision of the company are given. They are tasked with the responsibilities of developing business strategies within defined corporate premises.
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