Org Strategy in Global Env Week 9 Assignment

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Business Strategy

SNHU

Org Strategy in Global Environment

Terrell McGhee

1/30/2022

Business Strategy Definition

This is an outline of all the actions and decisions that a company plans to take to achieve its goals and objectives. It is simply a guide to the decision-making process for resource allocation, customer attraction, and performance strengthening to compete successfully in the industry.

Formulation

Business strategy formulation is the process of choosing the most suitable course of action to realize organizational goals and objectives and achieve its vision ("Strategy formulation," 2018). The following are necessary steps for business strategy formulation.

Step1: Setting the Organization's Objectives

The process begins by determining the short-term, medium-term, and long-term objectives an organization tries to meet. While setting these objectives, the factors influencing these objectives should be analyzed to facilitate making strategic decisions.

Step 2: Evaluating the Organizational Environment

This step entails assessing the organization's operating environment to determine its competitive advantage. The purpose of this assessment is to discover factors for competitive success in the market and evaluate the organization's strengths and weaknesses.

Step 3: Setting Quantitative Targets

The organization should stipulate the target values of its objectives in a particular period, either quarterly or annually. These targets provide the basis for the performance evaluation of a product or department.

Step 4: Setting Divisional Plans and Departmental Contributions

In this step, contributions made by each division/department within the organization are identified for strategic planning.

Step 5: Performance Analysis

This step involves evaluating the gap between planned and actual performance. This analysis is essential in assessing what the organization has done in the past, how it is fairing in the present, and what it intends to accomplish in future.

Step 6: Choice of Strategy

The most suitable strategy is selected considering the organization's goals, potential, strengths, opportunities and limitations.

Responsibilities

An organization's management is responsible for formulating a good business strategy.

All the organization's stakeholders ranging from management, employees, the board of directors, and consumers, benefit from a good business strategy.

Corporate Vs. Bussines Unit Strategy

· Corporate strategy is concerned with the overall objective and scope of business to meet stakeholder desires. In contrast, a business strategy deals with strategic decisions relating to how a business unit will compete successfully in the market.

· A corporate strategy is created by top-level management, while a business unit strategy is created by middle-level management.

Reference

Strategy formulation. (2018, July 27). Business Jargons. Retrieved From https://businessjargons.com/strategy-formulation.html