Business Administration class Strategy Formulation Essay

Business Administration class Strategy Formulation - Essay Example This is because in each stage, certain vital activities are done. In Strategy formulation, certain features of the organization are presented. The features are analyzed both internally and externally. These features include the vision, mission statement, objectives, and tactical objectives of the organization. The process starts by first looking at the mission and objectives which describe the companys business goals as well as measurable financial and strategic objectives. Secondly, an environmental scan is done. This includes an internal analysis of the firm as a whole, and its industry (task environment). An external analysis, also known as the PEST analysis follows (â€Å"Pest Analysis†, 2010). In strategy formulation, the information acquired from the environmental scan is used to match the firm’s strengths to its opportunities while addressing its weaknesses and external threats. In strategy implementation, programs, budgets, and procedures are used as means of implementation and this makes it important for success to be guaranteed. In the final stage which is evaluation and control, parameters to be measured are defined. The next step involves defining targets for the measured parameters, performing the measurements, and finally, comparing the measured results to pre-defined standards and make necessary changes. This second stage of strategic management supports the mission and objectives of the organization by creating sustainable competitive advantages. The stage is organized into six sections. Some of these sections are; Corporate-Level Strategy, Competitive Strategy, Functional Strategy, Choosing Strategies, and Troublesome Strategies (Rex, n.d.). Each of these sections has got its own methods of formulation. The level of Corporate-level Strategy is concerned with the direction of the company. It provides a channel for the organization to make some changes and improve their growth objectives and achievement. In the second level, Competitive