Strategy Development
Strategy formulation is the process by which an organization chooses the most appropriate courses of action to achieve its defined goals. A company that has not taken the time to develop a strategic plan will not be able to provide its employees with direction or focus.
This process is essential to an organization’s success, because it provides a framework for the actions that will lead to the anticipated results.
Why formulate your strategy?
Strategic planning in business is important from the perspective of the long-term health of your enterprise.
Figuring out where your business is going is fundamental to strategic planning and to your overall success. Strategy may be formulated at the corporate level, business level and functional level.
- Corporate level. This strategy decides what business the organization should be in, and how the overall group of activities should be structured and managed. It maximizes competitive advantage and minimizes competitive disadvantage.
- Business level. It emphasizes improvement of the competitive position of a corporation’s products or services. It usually occurs at the product level and may fit within two overall categories of competitive or corporate strategies.
- Functional level. It is the approach taken by a functional area to achieve corporate and business unit objectives. It is concerned with developing nurturing a distinctive competence to provide a company or business unit with a competitive advantage.
Importance of strategy formulation
The formulation of a sound strategy facilitates a number of actions and desired results that would be difficult otherwise. Strategic formulation allows the firm to plan its capital budgeting.
A firm without a clear strategic plan gives its decision makers no direction other than the maintenance of the status quo. The firm becomes purely reactive to external pressures and less effective at dealing with change.
- It allows organizations to be A strategic plan allows organizations to foresee their future and to prepare accordingly. With a strong strategic plan, organizations can be proactive rather than merely reacting to situations as they arise.
- It sets up a sense of direction. A strategic plan offers a much-needed foundation from which an organization can grow, evaluate its success, compensate its employees and establish boundaries for efficient decision-making.
- It increases operational efficiency. It guides management discussions and decision making in determining resource and budget requirements to accomplish set objectives.
- It can make a business more durable. A business may be booming one year and in debt the next. With constantly changing industries and world markets, organizations that lack a strong foundation, focus and foresight will have trouble riding the next wave.
If you’re considering adopting a strategic plan at your organization, or are looking for a way to align your staff and daily operations on your existing one, look no further. At Synergy Financial Advisory we have a team that is ready to work with you.
We are located at Surveyors Court, Woodvale Groove, Westlands. You can give us a call on 0711712 000/0721947 604 for any inquiries. Visit our website and see other services that we offer.