|
Khadija Kalangu, Tanzania
|
Main Factors of Strategy Formulation
Question. What are the main factors that needed to be considered during the formulation of strategy?
X
Sign up for free
Welcome to the Strategy and Innovation forum of 12manage.
Here we exchange knowledge and experiences in the field of Strategy and Innovation.
❗Sign up now to gain access to 12manage. Completely free.
X
Continue for free
Please sign up and login to continue reading.
Here we exchange knowledge and experiences in the field of Strategy and Innovation.
❗Sign up now to gain access to 12manage. Completely free.
| |
|
|
| |
|
Claude Balleux
Strategy Consultant, Canada
|
|
The Main Factors of Strategy Strategy is how to reach your goals. So, the goals that you want to reach are the first thing you should know.
|
| |
|
Julius Nyangaga
Consultant, Kenya
|
|
Main Factors of Strategy: Goals + SWOT 1. Your goal(s). In light of developments in factors 2 to 5 below, be ready to review but keep an eye on a major driving vision.
2. Strengths: internal features that provide you the greatest advantage to achieve your goals: age, education, experience, technology, capital, intelligence. Build on them; use them to their greatest possible degree.
3. Weaknesses: internal features that threaten achieving those goals. The list is the same as above but consider which are or likely to become stumbling blocks. Plan to reduce their effects.
4. Opportunities: external situations and developments that can be exploited to achieve your goals. Use PEST analysis plus industrial (and competitive) analysis. Reach out and take advantage.
5. Threats: external situations and developments that are likely to affect your goals. Again use PEST analysis and especially consider competitor developments. Plan to overcome their negative effects.
|
| |
|
Adam Sheikh, Kenya
|
|
Main Factors of Strategy Formulation Strategy is a road map to achieving organizational results in the long run through formulation and implementation of strategic plan.
1. Scanning of both internal and external environment. The external environment is a host of external and often largely uncontrollable factors influence organization's choice of direction and action and ultimately its structure and internal capabilities (ie political, legal, social-cultural, technological and ecological factors). Look back at the past to tackle today's challenges and gain insight into the future.
2. The nature and degree of competitiveness of an organization hinges on the Five Forces model - Michael Porter 1980, viz, The threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products and rivalry.
3. Industry analysis - analysis of core competencies and distinctive capabilities.
|
| |
|
Alan Kennedy, Canada
|
|
Main Factors of Strategy Formulation I argue in my book, The Alpha Strategies, that the most important first consideration in strategy formulation is understanding current strategy. There are eight strategies common to all organizations, whether they are for-profit, not-for-profit, or public sector organizations. They are: Business Definition, Risk, Growth, Finance, R&D / Technology, Organization, Marketing & Sales, and Service Delivery (including production and manufacturing). These strategies are configured in a way that is unique to each organization and one of the 8 is always the dominant strategy setting the organization's overall culture. These strategies are inherent in every organization that is up and running. There is no such thing as "We don't have a strategy" or "We don't have a strategic plan". What those phrases mean to me is that the strategy is not written down and, very often, there is complete confusion about what the strategies of the organization are. All of this makes implementation strategy development problematic. Therefore, for me, the main factor to consider in strategy planning is "Can we all agree on written descriptions of the eight strategies and on how they are configured?
|
|
Log in
Comments by date▼