Strategy Formation (Classical School)
The initial task in strategic management is typically the compilation and dissemination of the vision and the mission statement. This outlines, in essence, the raison d'etre of an organization. Additionally, it specifies the organization's scope of activities and the markets a firm wishes to serve.
Follow-on strategy formation is a combination of three main processes which are as follows:
- Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental.
- Concurrent with this assessment, short- and long-term objectives are set. These objectives should include completion dates.
- Implementation plans then detail how the objectives are to be achieved.
Read more about this topic: Strategic Management
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