In business formulation strategy there is only three options which includes rational approach which is commonly known as classical approach, emergent approach which are incremental and emerge over time as and when the Business requires to respond to the changing circumstances and the lastly one is symbolic approach(Taylor 2016).Business should apply strategy formulation. Strategy formulation is where the Business determines it position currently and where the Business want to be in future and also the process the Business can use to achieve the future target. Business should have an effective strategy by setting clearly and realistic objectives where some should be flexible (study.com 2017).
The business strategy exists in different levels in a business .They includes: Corporate strategy which concerns the overall business purpose and the scope of the Business which is to achieve the business stakeholder's expectations. Competitive strategy which set how the Business is can achieve its objectives successfully by having dominion in the business market over the other business competitors. operational strategy which involves how different sectors in the business work together to achieve and deliver the business strategies .Additionally operational strategy set out the planning and the use of the business workers ,together with their processes and resources(Riley 2017). For example the strategies that an organization may wish to achieve the competitive advantage can be either vertical or horizontal integration. The vertical integration is applied when the Business want to acquire either the downstream or upstream from the existing business market and the horizontal integration is applied when the Business want to merge with other Business in the same market. The strategy formulation requires to have a defined set of effective implementation it involves the following steps: Steps of strategy formulation in the Business First the Business should review the business mission, visions, business objectives and the goals of the Business. secondly the Business should scan the its environment Should review and update the business strategic goals. The Business should establish strategic objectives. Establishing strategies for each strategies objectives throughout the business operational planning.
The Business should develop annual action plan and it should finalizes its strategic plan. And finally the Business should execute the review. McKinsey 7s model was developed in the 1980s which can assists the Business in analyzing the seven main internal elements which includes ,the business strategy, the structure, systems ,business share values, styles ,the business workers and skills where using the model business can determine their set objectives are aligned and either they are achievable. For the Business to apply the model, it must be best suited to the business needs. Business can use the McKinsey 7s
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- Summer '18
- Brett Gordon
- Management, present-day business