Strategic Business Planning: Strategy Formulation

Description

Description: This course has been designed to introduce a variety of aspects of international business. Globalization and growing international trade amongst many different countries have brought new challenges and opportunities for many new economies and established economies.

This course features dynamic and engaging video with audio narration, infographics and short quizzes to test your knowledge.

Background: As discussed in the previous section, the vision and mission statements help an organisation to establish its goals, and this is the first step in the process of formulating a strategy. Strategy formulation is the process by which an organisation chooses the optimal strategic course of action that enhances the chances of achieving its goals and objectives. This process is important because it designs the framework for the organisation’s processes and procedures to achieve the targeted results in light of the organisation’s situation and prospects. Mintzberg highlighted that:
“Strategy formation is judgmental designing, intuitive visioning, and emergent learning; it is about transformation as well as perpetuation; it must involve individual cognition and social interaction, cooperation as well as conflict; it has to include analysing before and programming after as well as negotiating during; and all of this must be in response to what can be a demanding environment. Just try and leave any of this out and see what happens”

The Strategic Business Planning process is an integrated approach. This figure outlines the strategic business planning components, including: Formulation; Implementation; and Evaluation. The following sections will discuss the steps in strategy formulation.