University of Sialkot

Assignment#02

Strategic Management
Student Name: Majjasad Ali
Roll No: 19202001-0-17
Department: BBA-Honors (8th Semester)
Submitted to: Sir Asad shah
Date:23 /12/2022
Explain strategies management formulation stage with the support of various
strategies the organizations adopt at Corporate, divisional and functional levels.

The strategic management process consists of three stages strategy formulation, strategy
implementation, and strategy evaluation. Strategy formulation includes developing a vision
and mission, identifying an organization’s external opportunities and threats, determining
internal strengths and weaknesses, establishing long-term objectives, generating alternative
strategies, and choosing particular strategies to pursue.

Vision statement
“What do we want to become?” This means where do we stand in 2 to 5 years?
A vision statement is an organization's declaration of its mid-term and long-term goals, stating
what they want to become in the future. Vision statements act as a goal for a company to strive
toward.
Mission statement
A mission statement is a concise explanation of the organization's reason for existence. It
describes the organization's purpose and overall intention.
External opportunities and threats
Opportunity is a condition in the environment that an organization can take advantage of to
become more profitable. The political, economic, social, cultural, technological, legislative,
and environmental.
The threat is a condition in the environment that endanger the integrity and profitability of a
company’s business

Internal strengths and weakness

Strength are factors in which the company holds expertise and contributes to the continued
success of the organization. These are the basis of the success of the organization.
Weaknesses are factors that prevent an organization from meeting its mission and achieving its
full potential. These weaknesses hamper the organization's success and growth.
Long-term objectives
Long-term objectives are prepared from the mission statement of the organization based on
which all other activities depend. Long-term objectives highlight the expected consequences
that emerged from the application of certain strategies.
Alternative strategies
Alternative strategies are used for adopting a good strategy according to the plan, need, and
budget.
Annual objectives
Short-term milestones that firms must achieve to reach long-term objectives.
Step of formulation

Determining Organizational Objectives

The primary cause of Strategic formulation Is To Set Down sure targets That An organization tries to
meet. goals may be ambitious or Modest, but In either Case, They must Be Spelt Out With The assist
Of a detailed Plan That suggests How those targets can be found out through The business enterprise.
while determining Organizational targets, approach formula also takes care of The Time durations
while specific targets must Be Met Or Discarded, In Case They’re no longer possible inside the Scope
Of The enterprise worried.

Assessing The Organizational Environment

The second Step Of strategy formula involves Assessing the economic And monetary surroundings in
which An employer Operates. because of this competitors inside An enterprise want To Be located,
Tracked, And Analyzed. in addition To That, everyday Qualitative And Quantitative critiques Of An
enterprise’s services or products should Be carried out.

Fixing Quantitative Targets

This Step calls for companies To repair Quantitative goals That They should Meet In a particular
quarter Or financial yr. those objectives provide useful statistics about The lengthy-time period cost
Of clients To An corporation as well as The overall performance Trajectories Of various services or
products Zones And running Departments across An corporation.

Divisional Plans And Contributions From Different Departments

For This Step, each branch Or department Or product or service class found in An business enterprise
Is recognized And Evaluated For Its overall performance And Adherence To Strategic making plans.
this is carried out no longer simplest For The branch In query but also For each Of The Sub-devices
under A single department

Performance Analysis

As a part of This Step, corporations Are Required To pick out And analyze the space among favored
overall performance And real overall performance. that is achieved On the idea Of performance
statistics, consumer comments, worker suggestions in addition to A trendy Survey Of The tendencies
And styles found in An organization. This Step Is vital To build Connections between What An
organization Has finished inside the beyond, the way it’s Faring inside the gift And What it may
Accomplish inside destiny.

Integration Strategy
Forward Integration: Gaining ownership or increased control over distributors or
retailers. For example, a farmer directly sells his crops at a local grocery store rather
than to a distribution center that controls the placement of foodstuffs in various
supermarkets.
Backward Integration: Seeking ownership or increased control of a firm’s suppliers.
For example, Backward integration might involve the clothing manufacturer buying a
textile company that produces the material for their clothing.

Horizontal Integration: Seeking ownership or increased control over competitors. For

example, Apple Inc. has employed a vertical integration strategy for decades. Its
software products are placed into electronic devices and computer systems
manufactured and assembled by Apple using hardware and components also
manufactured by the company
Intensive Strategy
Market Penetration: Seeking increased market share for present products or services
in present markets through greater marketing efforts. For example, Unilever, Lifebuoy,
Dove, and Lipton penetrate their market with their brands.
Market Development: Introducing present products or services into the new
geographic area. For example, Pakistan's state oil developing a new market by
exporting new oil to Afghanistan.
Product Development: Seeking increased sales by improving present products or
services or developing new ones. For example, Apple focuses on new product
development. iMacs, iPods, iPads.
Diversification
Related Diversification: Adding new related products or services. For example, In
2007, Coca-Cola spent $4.1 billion to acquire Glacial, including its health drink brand
Vitamin water. With a year-on-year decline in sales of carbonated soft drinks like Coca-
Cola, the brand anticipates the drinks market may be heading less-sugary future. So has
jumped on board the growing health drink sector.
Unrelated Diversification: Adding new, unrelated products or services. For example,
Coca-Cola offers official merchandise from pens and glasses to fridges, therefore
exploiting its strong brand advocacy through this strategy.
Defensive Strategy
Divestiture Selling a division or part of an organization. For example, Wyeth Pakistan
Limited sells its assets to cash against cash to ICI Pakistan Limited.