Strategy Formulation

As an organization’s strategic plan is basically its game plan. Strategy Formulation could include making many types of decisions such as: - What new businesses to enter - What businesses to abandon - Whether to expand operations or diversify - Whether to enter international markets - Whether to merge or form a joint venture - How to avoid a hostile takeover To formulate a strategic plan, an organization takes the following steps: - developing a vision and mission - identifying an organization’s external opportunities and threats - determining internal strengths and weaknesses - establishing long-term objectives - generating alternative strategies, then - choosing particular strategies to pursue