This presentation is on Strategy formulation(of subject strategic management) and it covers following points :- Define strategy formulation Need of strategy formulation Steps of strategy formulation Problems in strategy formulation Levels of strategy

2. Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
Content

4. Need of strategy formulation
To achieve the organisational goals effectively
and efficiently.
To become more competitive.
To maximizing the profit.
To make a large market share.
And so on....

5. Steps of strategy formulation
i. Establishing objectives :- The main element of corporate strategy is the objectives
of the firm. Objectives of the firm act as a foundation or base.
ii. Analysing the Environment :- In this stage general environment is analyzed from
different angles. This involves assessment of internal and external business
environment. This will help the firm to appraise its strengths and weaknesses
and identify the major strengths and weaknesses of their competitors.
iii. Fixing quantitative targets :- In this state a firm may set quantitative target for
some of its objectives
iv. Relating targets to divisional plans :- This step of strategy formulation identifies
the contribution that can be made by each division or product group within the
corporation and for this purpose, a provisional strategic plan must be developed
for each sub-unit.
v. GapAnalysis :- Gap Analysis is the identification and analysis of a gap between
planned or desired Performance.

6. Establishing
objectives
Analysingthe
environment
Fixing
quantitative
advantage
Relatingtargets
to divisional
plans
Gap analysis

7. Problems of strategy formulation
a. Lack of awareness (no proper information)
b. Kidding themselves syndrome (no flow of any new information)
c. Vested interests of the managers (personal interest affects
professional interest)
d. Excessive involvement in everyday operational problem(no time for
studying information)
e. Resistance to change
f. Inability on the part of the top management

8. Levels of strategy
Corporate
level
strategy
Business
level
strategy
Functional
level
strategy

9. Corporate level strategy
This strategy formulated at corporate level by top management.
To oversee the interests and operation of organizations.
Dealing with the objectives of firm, acquisition and allocation of
resources, and coordination of strategy of various units.
It applies to the enterprise as a whole.
It explains the business in which a firm will compete and how it
should utilize its resources.
It occupies the highest level of strategic decision making.

10. Business level strategy
This strategy formulated at business level by managers.
It concerned with managing the interests and operations of
a particular line of business.
A managerial game plan for a single business.
Here strategy is about which product or services should be
developed and offered to which market and to which
customers.

11. Functional level strategy
A functional strategy is a short term game plan for a key functional area
within a company.
Functional strategies help in implementing grand strategy.
Its focus on external environment.
Types of functional strategies :-
i. Marketing strategy.
ii. Operations strategy
iii. R & D (Research & Development Strategy)
iv. Information system strategy
v. HR strategy (Human Resource)
vi. Financial Strategy

13. Presented by:-
Yamini kahaliya
BBA (Honor’s)