Tuesday 27 November 2018

Strategy Formulation and implementation Strategies

Strategy Formulation

The strategic management process is said to be complete when the company will decide which strategy will run. The company will still have to translate the strategy structure into strategic steps. We must always keep in mind that the formation of any strategy is as good, if it is not implement properly, it will be only rhetoric.

Therefore, in order to achieve the best possible way, then in addition to being able to create strategies, companies should effectively implement the strategy. If one of these measures cannot be apply properly, then it is not impossible that the company will fail.

In fact, although the formation of a complete strategy, though not being able to properly implement, contributes to achieving the least goals.

Here are ten such problems arrange by level of frequency of occurrence.

  1. Implementation to run more slowly than originally planning

  2. The emergence of various unexpected problems

  3. Coordination in implementation is not effective

  4. Companies pay attention to excessive competition activity and handling crisis so little regard for the implementation that should be run

  5. The ability of the human resources involve in the implementation of the strategy of less

  6. The education and training of human resources in the lower level inadequate

  7. Do not control the external environmental factors

  8. The quality of the leadership and direction of the Department managers lack adequate

  9. No details on the implementation of the key tasks and activities

  10. Monitoring activity by the company-own information systems inadequate

Its resources (money, time, energy) are scatter to develop a strategic plan for many companies or organizations that are powerful. But we must remember that the changes will be done only through execution, not just planning. If the technique is design to be less technical than the one correctly execute, then it will achieve even better results than forming a complete strategy, but only on paper.

Formulation of the strategy

There are various possibilities that occurs between the formulation of the strategy with the implementation of the strategy:

  1. Success: Is the most desirable outcome-dreams by any company. This situation can occur if the formulation of corporate strategies drawn up properly nor in its implementation.

  2. Trouble: Is the situation where the company devise his strategy formulation well however the implementation is bad.

  3. Roulette: is the situation where a company is less good in formulate his strategy, but the company did a pretty good implementation.

  4. Failure: the condition is not very chill by the company. This happens because the company's strategy is not formulate properly, as well as in its implementation.

Base on the above description it can be infer that there is a close relationship between the formulation of the strategy with the implementation of the strategy. Although related, fundamentally between the formulation of the strategy with the implementation of the strategy, there is a difference.

It is support by 31 research results in the manufacturing industry, where the results show that the acquisition of the acquiring company is not only define by the ownership strategy, but because of the company's effectiveness in strategy implementation is more.

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