STRATEGY FORMULATION

Strategy formulation is the process of determining what the company desires to accomplish in the long-term (five to ten years), and what goals need to be met in the near-term (one year or less) to achieve this outcome.  These goals will ideally fall into one of four categories - financial, customer value, internal processes, and learning and growth.  Three distinct but intertwined strategies will be created as a result of this process:  the corporate, competitive, and functional. 

BENEFITS OF STRATEGY FORMULATION

A strategy that is comprehensive, yet not overly complicated will provide your business with a map to achieving its long-term vision. 

THE STRATEGY FORMULATION PROCESS

• Develop a 5-10 year vision consistent with the mission statement and the SWOT analysis
• Determine what goals must be met in the coming year to make the appropriate progress towards the realization of that vision
• In light of these goals, construct a competitive strategy to specify how the firm will market its products and services
• Additionally, develop goals for the separate functional departments within the firm that will support the achievement of the organizational goals

FURTHER READING

These links elaborate on the topic at hand.  They serve as a good starting point for those companies that would like to learn more or would like to address these topics “in house.”  For those firms that prefer to continue to focus on their current responsibilities and would value the objective viewpoint of a professional from outside of the organization, click here. 

“Strategy Formulation – Importance of strategy, Defining the business, Strategic mission, Strate…”
Excerpt:  “Businesses must be defined in terms of their customers. Without customers, there is no business. They are a firm's only real source of revenue and, hence, of power. Successful businesses are those that create profitable customers.”

“Competitive Positioning – Marketing M.O.” 
Excerpt:  “When your market clearly sees how your offering is different than that of your competition, it’s easier to generate new prospects and guide them to buy. Without differentiation, it takes more time and money to show prospects why they should choose you;”

“Functional tactics & Implementation | MyStrategicPlan”
Excerpt:  ”The Post-it Planning process is a simple way to organize a complicated project into a comprehensive strategy which anyone can follow. All you need are some small post-it notes and news print or a white board.”

ImperoCo Business Solutions - "Developing Organizational Success."