Wednesday, 7 December 2016

The process of formulating your strategy

Hello readers, I will be writing about strategy formulation. Strategy formulation could be seen as a process whereby the best courses of actions are chosen so as to achieve the goals and objectives of your business. Thus, achieving the vision of your organisation.

The first step to take when formulating your strategy is to define the long term goals and objectives of your business. You will then have to evaluate your business environment using the PESTEL analysis framework. You will also analyse the strengths, weaknesses, opportunities and threats of your business using the SWOT analysis framework. The PESTEL analysis will help you understand your environment. Both frameworks will let you know the competitive position of your business, which will guide your strategy.

The next step you will take is to turn some of your objectives into quantitative targets. This will help you know the value that might be added by various operating departments. These values must be identified, after-which, a business strategy will be composed for each department.

The last step you will take is to formulate the strategy. The strategy will be influenced by the goals and objectives of your company, the environment  your company operates in as well as the strengths, weaknesses, opportunities and threats of your company.

Thank you for reading this article. Keep checking out my blog regularly. Cheers!

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