Successful organizations manage to change their strategy constantly in line with the changes in their competitive environment by using a dynamic approach to strategy formulation and implementation. You may already have access to this article. Please Log in to check access.
Conducting A Strategic Review: An Elite Consultant's Ultimate Guide | Expert
Next Article. Downloads: The fulltext of this document has been downloaded times since Your Access Options. Existing Customer You may already have access to this article.
Recommendation Recommend to your librarian that your institution purchase access to this publication. Rent this from Deepdyve.
Article Options and Tools. Journal Information. The ways that strategies are created and realized differ. Thus, there are many different models of the process. The models vary between companies depending upon:. There are many components of the process which are spread throughout strategic planning stages. For clearer understanding, this article represents 5 stages of strategic planning process:.
The starting point of the process is initial assessment of the firm. Business' vision answers the question: What does an organization want to become? Vision is the ultimate goal for the firm and the direction for its employees. Thorough mission statement acts as guidance for managers in making appropriate Rothaermel, p.
When the company identifies its vision and mission it must assess its current situation in the market. Micro environment affects the company in its industry.
Competition is another uncontrollable external force that influences the company. A good example of this was when Apple released its IPod and shook the mp3 players industry, including its leading performer Sony.
- Buy for others.
- Policies & Information.
- Strategic planning?
Firms assess their competitors using competitors profile matrix and benchmarking to evaluate their strengths, weaknesses and level of performance. An organization holds both tangible resources: capital, land, equipment, and intangible resources: culture, brand equity, knowledge, patents, copyrights and trademarks Rothaermel, p. Successful situation analysis is followed by creation of long-term objectives. They act as directions for specific strategy selection.
- Information systems organizations and strategy summary!
- Strategic Management for Competitive Advantage.
- KILL KILL KILL!
In an organization, strategies are chosen at 3 different levels:. Managers may choose between many strategic alternatives.
Steps in Strategy Formulation Process
Even the best strategic plans must be implemented and only well executed strategies create competitive advantage for a company. At this stage managerial skills are more important than using analysis. Communication in strategy implementation is essential as new strategies must get support all over organization for effective implementation. It consists of the following 6 steps:. These smaller objectives are specifically designed to achieve financial, marketing, operations, human resources and other functional goals.
To meet these goals managers revise existing policies and introduce new ones which act as the directions for successful objectives implementation.