Strategy formulation is a step of strategic management process. It is a logical process of developing long range plans. It deals with defining and determining mission, objectives, strategies and policies of the organization. So, strategy formulation makes clear following issues in the organization;
⦁ Reasons for existence in business
⦁ What results to accomplish by when
⦁ Plan to achieve the mission and objective
⦁ Broad guidelines for decision making
Strategy is formulated in every organization to develop long-range plans for the effective management of environmental opportunities and threats in light of organizational strengths and weaknesses.
Following are the basic processes involved in the strategy formulation;
⦁ Determining mission and objectives
⦁ SWOT analysis
⦁ Developing alternative strategies
⦁ Choosing the most appropriate strategy