What is the strategic formulation process, and what are the two primary processes in the strategic formulation process?
Strategy formulation can be defined as the process through which an organization evaluates its various course of actions in order to come up with the most appropriate plan that can work to the advantage of the company. It is important for companies to have strategic formulation so that the organizations can be able to accomplish their objectives and goals of that specific organization. The stated formulations do not have to necessarily follow a certain chronological order, so long a s they all lead to the achievement of those goals for the specified time frame.
The first process is the setting of the organizations goals and objectives so that they act as the point of directions toward which the firm will be headed. The objectives can be divided into two divisions of either short term or long term objectives (Saylor foundation). The strategies play as the determining factor of how to reach the point that the company desires.
The second process is the evaluation of the organization or business environment (Saylor foundation). It is important to make an evaluation of the economic and the industrial environment in which the business operates. Such analysis is normally used by the management to know the areas of strength and weaknesses of the company. Additionally, it helps in knowing the areas of strength and weaknesses of the rivals within the same industry. The company’s strengths can then be used to the advantage of the organization to outcompete the rival companies.