Please respond to this response on Strategy formulation with your opinion:
Strategy Formulation means crafting a combination of strategies and picking out the best one to achieve the organizational goals and objectives. On the other hand, Strategy Implementation refers to the execution of the opted strategy.
The strategy diamond was developed by strategy researchers Don Hambrick and Jim Fredrickson as a framework for checking and communicating a strategy. Strategy diamond has five elements but most companies focus on one or two elements which can leave large gaps in the strategies. As the strategy diamond figure shows, a good strategy considers the five key elements in order to arrive at specific answers to five questions: (Carpenter & Sanders, p. 13, 2008).
- Arenas. Where will we be active?
- Differentiators. How will we get there?
- Vehicles. How will we win in the marketplace?
- Staging. What will be our speed and sequence of moves?
- Economic logic. How will we obtain our returns?
This requires mission and vision statement which shows company goals and how it will be achieved. Develop a vision, with full participation from all employees and shareholders. Try to make the vision as concise as possible. Mission Statement, describing the important business capabilities, based on the customer’s needs identified in the market research. From the vision statement, themes will emerge and form the mission statements for the business, and/or the problem or need to be resolved
The strategic planning process explores essential questions about the purpose of being in business. Owners and employees must answer these essential questions and come up with a consensus on the answers. Answers to these questions will help in determining the seven important elements to the strategic plan. What is our vision? What do we do best? •What is our business? • What needs do we satisfy for customers, which competitors cannot provide? • Where do we want to be in five years? (Stevens, 2009).
Leaders in my company have strong vision and goals for the company which is known to every employee in the company. One of the goals is to be best in customer service which is usually reinforced in each town hall meetings or board meetings. I do believe that if company has good leader with clear vision and communicated to each and every one, that company prospers and becomes successful.
1)E. Stevens, Chief Executive Officer at Lee Crane Hire Follow. (2009). 6. Five Elements Of A Strategic Plan. Retrieved October 05, 2016, from http://www.slideshare.net/earlstevens58/6-five-elements-of-a-strategic-plan
2)M. Carpenter & Wm. Sanders (2008). Strategic Management. A Dynamic Perspective. Upper Saddle River, N.J: Prentice Hall.