STRATEGIC MANAGEMENT

Midterm Exam

Name: Marisol D. Guino Program:BS in Accountancy-3rd yr

CRITICAL ANALYSIS ESSAY

Trlak, M. Sanal (2007) conducted a study entitled "DAVID’S STRATEGY FORMULATION FRAMEWORK IN
ACTION: THE EXAMPLE OF TURKISH AIRLINES ON DOMESTIC AIR TRANSPORTATION" which aimed to
implement a modern strategy formulation framework of Fred David in the strategic management
process of Turkish Airlines as well as pointed out some of the framework's limitation. Initially, the paper
served as a guide for decision makers of Turkish Domestic Airlines for the evaluation of its internal and
external environment and helped on the formulation of alternative strategies using different techniques.
The study was very useful for it helped not only the Airline but also future businesses by offering great
findings about strategical methods.

Basically, the researchers covered four-part methodology to conduct the research and to arrive at their
findings. First, the researchers formulated research models as to easily analyze David's framework and
lay out the theoretical background about it. Using these models, it has been identified that the
framework has a three-stage process namely: Input Stage, where all informations regarding the
evaluation of internal and external environmental factors affecting the company are found; the
Matching Stage which was focused on the formulation of alternative strategies considering all factors on
the first stage; the Decision making stage where all alternatives are evaluated to arrive at a possible
course of action that the company should take. Second method conducted, all background information
about Turkish Domestic Airlines operation as well as the Turkish Airline Industry, was comprehensively
analyzed and described. It showed the current position of the airline financially as well as its economic
standing. All challenges faced by the company was also taken into consideration. Third, formulated
modern strategical framework based on the first part of the research was applied to the company. The
framework was also three-staged process and successfully using these informations, researchers are
able to arrive at the fourth part which was the identification of the framework's limitation.

Using these four- part method, findings were analyzed and weighted. It has been identified that the
framework critically required intuitive judgement from the decision maker/strategist for numerical
values of the results are biased and merely suggest subjective view of the process for it was naturally
embedded on the strategical formulation of the Turkish airlines. Also, it showed that deleterious
consequences that the firm might face in using the framework because the strategic formulation
process are based only on the perceptions of top management or expert eye level only, which in fact
showed that consultants hired might only be serving to the best interest of the top management, which
would fail to represent the whole factors which involve low level employees. Lastly, cultural feasibility of
the framework was held as the framework's limitation. It was identified that David's strategic
formulation could arrive at a certain strategies that is contradictory to the firm's norms, goals and
objectives. That is why the researchers after arriving at analysis recommend that it was for the best
interest of the Turkish Domestic Airline to use the market penetration strategy. And it was a smart move
considering the underlying factors faced by the company. However, since Turkish Airline had conflicts
between managements and its employees, this strategy was also not feasible for the time being.
In conclusion, the study successfully met the researchers hypothesis. It provides clear picture as to how
David's Strategic Formulation was conducted. Taken into consideration the understanding of the entity
and underlying factors affecting its operation also provides unbiased findings of the study. And
personally I think that the researchers successfully showed and laid out all good sides of the strategic
formulation framework and good thing it never failed to mention the crucial part of using the process
which must be taken seriously, which was about professional judgements. And by uncovering its
limitation the study had served as stance for future studies to be conducted. Future researchers could
dig deeper as to grasp more context understanding about factors underlying these limitations.