STRATEGY FORMULATION

Developing Long Range Plan

 What is Strategy Formulation?
• Strategy Formulation is the process of establishing goal
and determining the proper plan of action to achieve
those goal.
• Organization uses strategy formulation to plan for
success and make improvements to workplace strategies
as needed.
• Strategy Formulation is essential for achieving measuring
the attainability of goal.
 Level of Strategy Formulation
• Corporate Level - how you structure the organization and
coordinate across business unit.
• Business Level - how you target and retain customer and
complete with other organizations in your market.
• Functional Level - how you plan to grow and improve the
organization.
 6 Steps to execute Strategy Formulation

1. Develop a Stratigic Mission

Strategic Mission is a foundation Statement that
include the organization’s values and long-term goals.
Strategic Mission is a High-level understanding of a
company purpose and philosophies, and it can guide your
strategy
 3 Major Component Of Strategic Mission
I. Time - think of where you’d like the business to be in one, five of
10 years from now. having a long-term perspective can help you
identify aspect of your strategic mission which may involve your
target market, customer and challenges.
II. Core Values - Understanding Core Value can help you decide
how to achieve goals and identify why you’re working towards
achieving this goal, how they can affect the company and what
outcomes they may produce.
III. Business Description - a description of what the organization
does and hopes to achieve can also assist with developing a
strategic mission.
2. Establishing Organizational Goals
Organizational Goal are actionable objectives that can
bring your team closer to achieving your strategic mission
and improving your operation.
Understanding what you’re working toward can help
you develop appropriate processes and procedures to
reach your business goal efficiently.
 To Identify Organizational Goals
I. Target Market - an organization would like to sell its product or
services.
II. Customers - identifying purchasing habits and behavior of
target customers is a large part of developing a business goal,
so consider how they might use your product and what factor
guide purchasing decisions.
III. Offering or Goods - reflect on how you can distinguish and
improve you product or services.
IV. Adaptation to changes and challenges - anticipating obstacle
and planning solution to them can help an organization develop
a plan of action to mitigate risk and excel.
3. Create Departmental Plans
You can dissect your goals and develop a plan for each
department , team or business unit. This can help you create task
for employees to reach your company goals and improve key
performance indicators (KPIs).
Example of departmental Goal:
• Develop and use a customer database..
• Improve workplace safety.
• Invest in customer management.
• Convert more than 10 leads per month.
• Increase company revenue by 15%.
4. Conduct a Performance Analysis
An Organization might conduct a performance analysis
on internal and external department to assist its current
Performance.
Analysis can reveal gaps between your stasis and
your goal, and it may help you determine what techniques
are the best fit for your needs.
 One Cmmon Type of Analysis
• S - Strength
• W - Weaknesses
• O - Opportunities for Growth
• T - Threats to the Business
A SWOT analysis helps you objectively assess your
current operation while also making future plan.
5. Implement a Plan of Action
defines what method your plan to use to active your strategy .
you can also make adjustments to your strategies as market or
industry changes occur.
Example of Strategies:
• Creating a website to increase customer reach
• Implementing new online advertising campaign to increase sale.
• Using unique features for product to increase product differentation.
• Gaining a technological advatage by investing in new sooftware
programs or technology devices to improve productivity and perform
market research.
6. Revise your Strategy as needed.
As you implement a new strategy to reach
organizational goals, be sure to monitor your progress and
consistently analysis to evaluate the effectiveness of a
strategy.
 Tips for using Strategy Formulation
• Use SMART goal
SMART stand for Specific, Measurable, Achievable,
Relevant and Time-based goals. SMART goals can help
you craft a specific objective that’s easy to measure or track
and has a clear and concise plan for success.
• Specific - define a clear, specific goal.
• Measurable - make sure you can track your progress.
• Achievable - set goal you know you can achieve.
• Relevant - Set goals Relevant to your Career or
Education.
• Time-Based - Set a deadline for completion.
• Ask for Feedback from employees
promote an open communication policy and allow
them to give their opinion and express idea for alternative
approaches and perspective. Feedback can help you revise
strategies and apply the ideas from employees who use
them daily.
• Keep and compare Drafts
Consider keeping a copy of each draft and comparing
them as you adjust. You can use these drafts as a baseline
to refer to while determining the relativity of each idea for a
strategy to the goal you’re ttrying to reach.
THE END . . .