Chapter 1. (2) Strategy Formulation

 

 

Strategic Management Process은  Strategy Formulation,Implementation, Evaluation 3가지 Stage로 이루어져 있다. 

지금부터 각각에 대해서 간단히 살펴보겠다!

 

 

 

Strategy formulation

• Strategic management process의 한 스텝
• analytical process of selection of the best suitable course of action to meet the organizational objectives and vision.

 

 

Steps of Strategy formulation

 

 

1)  Establishing   Organizational   Objectives: This involves establishing long-term goals of an organization. Strategic decisions can be taken once the organizational objectives are determined. (반드시 목적성 있게 행동해야 한다.)

 

 

2)  Analysis   of   Organizational   Environment:   

 

This   involves   SWOT analysis,

• identifying  the company’s strengths / weaknesses
  • Strengths / weaknesses are internal factors which the company has   control   over.   
• keeping   vigilance (신중)  over   competitors’   actions   to   understand opportunities and threats.
  • Opportunities   and   threats are external   factors   over   which   the   company   has   no   control.

 

   A   successful organization  builds on  its  strengths, overcomes its  weakness, identifies new opportunities and protects against external threats.  ( 위협 속에서 새로운 기회를 본다.)

 

3) Forming   quantitative   goals:   Defining   targets   so   as   to   meet   the company’s short-term and long-term objectives.  (Example, 30% increase in revenue this year of a company)

 

 

4) Objectives in context with divisional plans: involves setting up targets for every department so that they work in coherence with the organization as a whole. (어떻게 분할하고 정복할지, 객체지향적 사고 필요함. 책임 식별)

 

5) Performance Analysis: estimate  the degree  of variation  between  the  actual and the standard performance of an organization.

 

6) Selection of Strategy : involves  evaluation  of  the  alternatives  and  selection of  the best strategy amongst them to be the strategy of the organization.

(여러 전략들의 퍼포먼스를 측정하고 이제 선택하는 단계)

 

Strategy formulation process is  an integral (필수적인)  part of strategic management, as it helps in framing  effective for the organization, to survive and grow in the dynamic business environment

 

 

 

 

 

 

Summary - Steps of Strategy formulation 

 

 

• Devloping a vision and mission
• Identifying an organization’s external opportunites and threats
• Determining Internal strength and wekaness
• Establishing long-term obejctives
• Generating alternative strategies
• Choosing particular strategies to pursue