Strategy formulation is a very important step, it all begins with External Environment Analysis, as a CEO of your organization before formulating a strategy, you must look for the major opportunities and threats in the market place. The CEO Studies the Product lifecycle, jobs to be done, Substitute of the product/services, PESTEL Analysis, Willingness of Purchase of customers, International Trade Etc.
Does your strategy fits with what's going on in the market environment ?
Based on the external environment study, CEOs also needs to study the Resource Based view Organization, and list the exploited and unexploited resources within the organization, to acquire market share or to create a market firms needs to create the competitive advantage, CEO must question that, whether the existing resources and processes allows firms to create the competitive advantage or not. if absence of such resources founds, then firm must acquire such resources. Firm should focus whether they will focus on cost leadership or differentiator based on the resources and by following what organization can do and can't do?
Post this evaluation firms needs to prepare the Strategic Objective. The Firm can effectively put strategic objective using Balance Scorecard method.
Post Strategy formulation its very Important that CEO Communicate this strategy to last-mile key stake holders of the organization to ensure each soldier of the team focus on the strategic objective of the organization.
Let's Review: It's highly important that, firms regularly reviews the strategic objective, as the environment is dynamic in nature, so Emergent Strategies can be implemented.
For more assistance reach out to Anvikshiki Consulting for strategic advisory and execution.
Helpful pointers for strategy formulation