Wednesday 19 December 2018

Formulation of Strategy

Formulation of Strategy

Definition of the strategy is the way to achieve long-term goals. Business strategy can be a geographical expansion, diversification, acquisitions, product development, market penetration, rationalizing employee, divestitures, liquidation and joint venture.

Understanding strategy is a plan that put together, and integrates the strategic advantages of linking companies with environmental challenges, design. To ensure that the main goal of the company can be reach via the proper implementation by the Organization.

Understanding strategy in General and specifically as follows:

Common understanding

Of the strategy is the process of determining the plan the leaders’ Summit that focus on the long-term goals of the Organization, accompany by the preparation of a way or attempt how to order these goals can be achieve.

A special Understanding

The strategy is the action that is incremental (continually increasing) and constantly, as well as conducted based on point of view about what is expected by its customers in the future. Thus, the strategy almost always starts from what can happen and instead of starting from what happened. The occurrence speed of innovation new markets and changes in consumer patterns requires core competencies (core competencies). Companies need to find a core competence in the business done.

The formulation of Strategy

Formulation strategy is the process of preparing the next steps that are intend. To build the Organization's vision and mission, strategic goal setting and financial the company. As well as designing the strategies to achieve those goals in order to offer our customer the best value.
Some of the steps that need to be done in formulating corporate strategies, namely:

  • Identify the environment that will be accessed by the company in the future and determine the company's mission. To achieve the vision aspired to in the environment.

  • Conduct internal and external environmental analysis to measure the strengths and weaknesses. The opportunities and threats that will be face by the company in carrying out its mission.

  • Formulating a measure of success factors (key success factors) of strategies. That are designed base on the previous analysis.

  • Specify the goals and measurable targets, evaluate various strategic alternatives taking into account the resources own and external conditions encounter.

  • Choose the most appropriate strategy to achieve the short and long term.

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