STRATEGY FORMULATION AND EXECUTION

Romesa Riaz (25053)

Rumaisa Aamir (26483)
Maheen Ali (26449)
Fiza Rauf (25944)
Baneen Anjum (25887)
LITERATURE REVIEW

Introduction

Planning can be broadly defined as an attempt to enhance performance by forecasting changes in

the organisation and its environment, setting objectives and developing strategies for the
achievement of those objectives (Capon et al. 1987; Wildavsky 1973). Strategic goals, often
known as official goals, are broad declarations that outline the organization's future aspirations.
Rather than being unique to particular divisions or departments, these objectives apply to the
organisation as a whole.
Strategic management is the collection of decisions, behaviors and actions used to develop and
implement strategies that will provide the organisation and its environment a competitively
superior fit to achieve its organisational goals. For any company; to achieve its goals, through
strategic decision-making, multiple options are considered, and their potential outcomes are
weighed before finalizing the most appropriate solution. For this, it not only requires a thorough
comprehension of the organization's entire strategy and goals as well as an assessment of
external factors like market trends and competitor analysis.
Strategic thinking requires innovation, research and analytical thinking, problem-solving,
communication and leadership skills. Their purpose is to turn organisational goals into realities
within a specific time period, as shown by research which says such decisions are made over a
long time and on a detailed basis using models in their activities to be more effective (Negulescu,
Oriana-Helena).
The five-step model used for strategic decision-making involves; defining the problem, gathering
information, developing and evaluating options, choosing the best option, implementing and
monitoring the decision (Doyle, J., 2012). A recent article also talked about the circle of strategic
management; analysis, decision and implementation (Planellas, Marcel and Muni, Anna).

Main Ideas of Strategic Management

To receive a fruitful outcome, some aspects of strategic management has to be implemented, as

stated by multiple research paper. The main ideas of strategic management include planning,
analyzing, and implementing in ways that can bring progress and stability to a business. Strategic
Management acts as a bridge between business resources and market opportunities, helping to
achieve the ‘Big Picture’ a business wishes to fulfill at a specific time. Strategic management
specifically asks assessing how decisions made today, which observing the past trends, will
affect my business in the future (Hofstrand, 2016). Before making a good strategy, it is necessary
to look at the business’s strengths, weaknesses, opportunities, and threats in order to avoid any

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future hassle. He also mentioned a military connotation of strategic management is "it hasn’t
won every war, but it has avoided a lot of ambushes." This helps us understand that strategies
help in looking at and being safe from hazards whether economic, political, or environmental.
Strategic planning comes before business planning. Strategic planning is used to identify and
assess alternative business strategies whereas business planning is used to implement a business
strategy.

Current understanding of the topic worldwide and in Pakistan.

These goals could be anything whether increasing revenues or profits, creating the most
innovative product, using certain marketing strategies to improve customer service, cornering a
young market, product differentiation, sustainability etc. The strategies mentioned above are
used to achieve the business goals. Samsung, for example, set a new strategic goal to become a
“quality-based” company rather than a “quantity-based” company. The shift in strategic
direction, focusing on creativity and innovation rather than making inexpensive knock-off
products, has led to amazing results. Samsung is now a leader in the electronics industry,
including threatening Apple in the smartphone market. Another example, is Unilever, CEO Paul
Polman set a strategic goal of doubling the company’s revenues by the year 2020. Similarly,
Tesla states that their vision is to create the most compelling car of the 21st century and
transition to electric vehicles to reduce energy costs and make the world a sustainable place.
(only one example can help explain our point)
Not only worldwide, but Pakistani companies like Tapal also had the highest sales (volume) in
2009 than any other tea product, having the largest market share as compared to its competitor
‘Lipton’ in Pakistan. Another example is the Coca-Cola Company in Pakistan operates as Coca-
Cola Pakistan Beverages Limited. Locally, the company has its products in each district, city, or
village (Abdullah et al., 6). (only one example can help explain our point either tapal or coca
cola) The approach has helped the company retain its number-one spot in the world’s beverage
industry. The strategy ensures that the company’s internal environment has effective
communication networks, improved organizational skills, increased investment in innovations
and technology, and exceptional marketing strategy to remain competitive (Johnson et al., 2014,
1). The company’s plans include a global marketing strategic plan, modification, standardization,
strategic environment, and positioning. It recommends the increase of the sales team to elaborate
on the objectives.

Application of Strategy in International and National Companies.

Implementation of successful strategies has become extremely important for firms to prosper and
for the business environment to remain competitive. According to many researchers, strategy
implementation is an essential link between the formulation of strategies and efficient and

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effective business outcomes (Nwachukwu et al., 2020). Managers should make sure to develop a
positive related between employee commitment and strategy. When workers are more involved
in strategic decision-making, they have a deeper understanding of how to implement certain
strategies (Collier et al., 2004). Marriott, a hotel brand, empowers its employees to make
decisions and take ownership of their work. This approach has led to a highly engaged
workforce, which has resulted in better customer service and business results.

The application of strategy in international and national companies depends on numerous factors
such as the company's size, resources, and competitive landscape. However, in both international
and national companies, it is important to understand the market firms are entering. Companies
need to develop a deep understanding of the market to develop effective strategies that can
differentiate them from their competitors. A study by Porter (Porter, 1985) emphasizes the
importance of developing a competitive advantage when operating in national and international
markets. The author states that companies need to develop unique value propositions, such as
cost leadership that can differentiate them from their competitors. For example, Walmart uses a
cost leadership strategy to keep its prices low and attract budget-conscious customers. A study
by Kotler and Keller (Larsen, n.d.) highlights the importance of market segmentation. The
authors argue that companies need to divide the market into distinct groups based on their needs,
preferences, and behaviors, and develop tailored marketing strategies for each segment. Coca-
Cola is known for its powerful branding strategy, which emphasizes the emotional connections
consumers have with its products.( I think that this eg is not connecting with the previous point)

All these studies show how strategies like competitive advantage, market segmentation, clear
goals and objectives, and effective implementation plans are keys to a successful organization.

Advantages and Disadvantages

Discussion/Debate

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As fundamental structure transitions in a wide variety of industries due to global competition,
rapid technological advancement, deregulation and changing customer expectations, many
organizations are turning towards a new approach to strategy. They are abandoning the
traditional ways and re-examining the concepts and tools of strategy and some are even
abandoning strategy as unimportant or irrelevant (Prahalad & Hamel, 1994).

However, research has shown that strategic thinking and planning positively affect a firm’s
performance and financial success. The research shows that the problem most organizations face
today is not formulating but executing a strategy.

Execution of a well-defined strategy gives an organization a competitive advantage. This

portrays why and how Amazon dominates so many e-commerce segments and how Ikea has
managed to become a global multinational leader in the home furnishing market, giving itself
business sustainability and a competitive advantage over other companies. (Shahid, 2010)

Moreover, according to researchers, disciplined employees are necessary for effective and
successful strategy implementation, and this is achieved by giving employees specific and
manageable tasks. Strategic plans are used to achieve strategic objectives and anticipate potential
problems. Strategies are developed and planned by testing various scenarios by means of
methods for identifying and challenging strategic assumptions. Strategies can be executed
successfully by ensuring plans are aligned with the organizational mission, vision and core, by
building an effective leadership team, creating an implementation plan, allocating budgetary
resources, assigning objectives and responsibilities, communicating the strategic adjustment as
necessary and developing an organizational culture that supports the strategy. (Strategy
Execution: The Essential Guide, n.d.)

Conclusion

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REFERENCES

Boyne, G. A. (2010). Strategic planning. Public service improvement: Theories and evidence,
60-77.

Negulescu, O. H. (2014). Using a decision-making process model in strategic

management. Review of General Management, 19(1), 111-123.

Planellas, M., & Muni, A. (2019). Strategic decisions: The 30 most useful models. Cambridge
University Press.

Adair, J. E. (2007). Decision-making & problem-solving strategies (Vol. 121). Kogan Page
Publishers.

Citroen, C. L. (2011). The role of information in strategic decision-making. International journal

of information management, 31(6), 493-501.

Nwachukwu, C., Zufan, P., & Chladkova, H. (2020). Employee commitment to strategy
implementation and strategic performance: organizational policy as moderator.
https://sci-hub.ru/https://www.inderscienceonline.com/doi/epdf/10.1504/IJBEX.2020.106368

Porter, M. E. (1985, January). TECHNOLOGY AND COMPETITIVE ADVANTAGE.

https://www.emerald.com/insight/content/doi/10.1108/eb039075/full/html

Larsen, N. (n.d.). Market Segmentation. ABM Report. Retrieved March 13, 2023, from
https://abm.report/Resources/Whitepapers/17aa6df1-a36a-45ab-9249-f64c68bc70b1_BA.pdf

Prahalad, C. K., & Hamel, G. (1994). Strategy as a field of study: Why search for a new
paradigm? C. Wiley Online Library.
https://doi.org/10.1002/smj.4250151002

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Shahid, A. (2010, July). Linking Strategy to Operations for Competitive Advantage. ProQuest.
https://www.proquest.com/openview/b02b5a5d6983fbb7e8628940d1e151bf/1?pq-
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Strategy Execution: The Essential Guide. (n.d.). Hirebook. Retrieved March 15, 2023, from
https://www.hirebook.com/strategy-execution

Hofstrand, D. (2016, June).

https://www.extension.iastate.edu/agdm/wholefarm/html/c6-39.html#:~:text=Strategic
%20management%20involves%20planning%2C%20analyzing,business%20resources%20to
%20market%20opportunities.

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