Introduction

Art and science of FORMULATING,

IMPLEMENTING and EVALUATING crossfunctional decisions that enable an
organization to achieve its objectives

Developing Vision and Mission

Identifying organizations External Opportunities

and Threats

Determining Internal Strengths and Weaknesses

Establishing Long Term Objectives

Generating Alternative Strategies

Choosing Particular Strategies to Pursue.

Action Stage Put formulated Strategies into

Action

Establish Annual Objectives

Device Policies

Motivate Employees

Alternate Resources

Reviewing External and Internal Factors that

are bases for Current Strategies

Measuring Performance

Taking Corrective Actions

Anything that a firm does especially well

compared to rival firms.
Industrial/Organizational (I/O) and ResourceBased View (RBV) theories of Organization
present different perspectives on how best to
capture and keep competitive Advantage.

Firm can sustain a competitive advantage for

only a certain period due to rival imitating and
undermining that advantage.
Sustainable Competitive Advantage desired by:
Continually Adapting to Changes in External
Trends and Events, and internal capabilities,
competencies and resources.

Effectively Formulating, Implementing and

Evaluating Strategies

Perform
External
Audit
Develop
Vision and
Mission
Statement

Establish
Long Term
Objectives

Perform
Internal
Audit

Generate
Evaluate
and Select
Strategies

Implement
Strategies
Mgmnt
Issues
Implement
Strategies
Marketing,
Finance,
Accounting,
R&D

Measure &
Evaluate
Performanc
e

It allows for identification, priortization and

exploitation of opportunities.
It provides an objective view of management
problems.
It represents a framework for improved
coordination and control of activities.
It minimizes the effects of adverse conditions
and changes.
It allows major decisions to better support
established objectives.

It allows more effective allocation of time and

resources to identified opportunities.
It allows fewer resources and less time to be
devoted to correcting erroneous or adhoc
decisions.
It creates a framework for internal
communication among personnel.
It helps integrate the behavior of individuals
into a total effort.
It provides a basis for clarifying individual
responsibilities.
It encourages forward thinking.
It provides a cooperative, integrated, and
enthusiastic approach to tackling problems
and opportunities

Poor Reward Structures.

Firefighting
Waste of Time (time spent of planning is an
investment)
Too expensive
Laziness
Content with success
Fear of Failure
Overconfidence
Prior Bad Experience
Self-interest (sees new plan as a threat)
Fear of the unknown
Honest difference of opinion

Data analysis
(PEST, industry,
resources)
Current
Strategy
(Idea Tree)

Analyses
Priortisation
(Matrices, Trends,
Cycles, Experts)

Identify gap
(Compare current
& preferred
strategies and
make change
recommendation
s)

Analysis
Integration
(map the PEST,
resources &
industry together
Dynamic SWOT)

Determine
preferred
strategy
(Strategic
quadrant,
retreats)