Strategy is the act of analyzing the organization, both internal and external factors, and putting objectives/initiatives to improve the current situation. This process is divided into two main branches namely: Strategy formulation and strategy execution.
Strategy formulation vs execution:
- While strategy formulation is the act of analyzing the organization both externally and internally to formulate specific vision and mission and capitalize on competitive edge to overcome weaknesses and threats usually done by consulting firms. On the other hand, strategy execution deals with planning to execute these initiatives and goals using the organizations’ resources.
Strategy formulation is the act of analyzing both external factors and internal factors to find better directions to lead the company to more growth and success. External analysis such as PESTEL, Porter 5 Forces, Market analysis …, and internal analysis such as BCG, portfolio, Core competences, Key success factors….. Then we match the external & internal analysis into SWOT. The final derive of the strategy formulation would be: Mission & vision, strategy maps, Initiatives, corporate KPIs.
- Internal Analysis
- External Analysis
- SWOT Analysis
Strategy execution is the divided into planning how to execute the goals and mapping them to team members, and putting this plan to action and following it up and readjusting sometimes.