Strategy Formulation and the Relevance of Methodologies

2727 Words6 Pages

Abstract—This article reviews some strategy formulation methodologies that are elaborated to achieve organisation's goals and objectives.

Key words— Strategy, Strategy Formulation, Top- down Methodology, Bottom- up Methodology, Porter Five Force.

I. INTRODUCTION TO STRATEGY AND STRATEGIC PLANNING

A 2007 survey of European and American firms reported that more than ninety-five per cent have employed a strategic planning process. According to this survey, strategic planning is a very important approach which is designed to create an efficient timely framework. This framework aims to guide and control firm’s actions over all internal and external limitations. (Lane et al, 2007)

Barta et al, (2010) believes that the success of strategic planning is related to firm's strategic management. There are two typical sides of strategic management; first is strategy formulation which is responsible about forming a suitable strategy for certain circumstances, and the second is strategy content which is the core of decisions.

To date, researches have mainly focused on either strategy formulation or alternative strategy content options. However, the traditional distinction between strategy process and strategy content has perhaps limited the ability of strategic management research to explain the determinants of organizational performance (Lane et al, 2007). Therefore, in this study will examine multiple formulation and content approaches and will analyse their impact on organizational performance as well.

In order to survive and compete in today’s business environment, organisations should update their processes, procedures and their strategic management. (Barta et al, 2010)

II. STRATEGIC MANAGEMENT

Like mentioned before, ...

... middle of paper ...

...Learning Technology. Association for Learning Technology, Vol. 12 (2)

[11] Loch, C. and Sting, F., 2009. How Top-Down and Bottom-Up Strategy Processes Are Combined in Manufacturing Organizations.

[12] Lane, R. and Lillis, B., 2007. Auditing the Strategic Role of Operations. International Journal of Management Reviews. Blackwell Publishing Ltd. Vol.9 (3), pp. 191–210.

[13] Porter, M., 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review, UK.

[14] Pun, K. and White, A., 2005. A performance measurement paradigm for integrating strategy formulation: A review of systems and frameworks. International Journal of Management Reviews. Blackwell Publishing Ltd Vol. 7(1), pp. 49–71

[15] Rai, A. and Ravichandran, T., 2000.Quality Management in System Development: An Organizational System Perspective. MIS Quarterly. Vol. 24(3), pp. 381-415

Open Document