Formal strategic planning process.

Full Answer Section

• External Analysis: This assesses the opportunities and threats (OT) facing the company using tools like PESTEL analysis. It considers market trends, competitor actions, and economic factors.

2. Strategic Goal Setting:

• Based on the situation analysis, the company defines its long-term goals and aspirations. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART).

3. Strategy Formulation:

• This step involves developing a plan to achieve the strategic goals. It might involve identifying target markets, competitive advantages, and growth strategies.

4. Strategy Implementation:

• This is where the formulated strategy is put into action. It involves allocating resources, developing action plans, and assigning responsibilities.

5. Monitoring and Evaluation:

• Performance is constantly monitored, and adjustments are made as needed. This ensures the strategy remains aligned with the changing environment and goals are being achieved.

• The situation analysis informs strategic goal setting by providing a clear picture of the company's internal and external landscape.
• Strategic goals guide strategy formulation by outlining the desired future state.
• Strategy formulation defines the course of action, which is then implemented.
• Monitoring and evaluation ensure the strategy is effective and adjustments can be made based on the situation analysis and goal setting.

1. a. They possess a willingness to delegate and empower subordinates. Good strategic leaders trust their teams and empower them to make decisions.
2. a. It provides managers with input for the next round of strategy formulation and implementation. The feedback loop allows for course correction and adaptation of the strategy.
3. c. It is involved with making decisions regarding how to create competitive advantage. Strategic leadership focuses on creating a sustainable advantage over competitors.
4. b. The role that lower-level managers can play in the strategic management process. Formal models might not emphasize lower-level manager involvement, but their input can be valuable.

Sample Solution

Formal Strategic Planning Process

The formal strategic planning process is a structured approach to developing and implementing a company's strategy. Here's a breakdown of the key steps:

1. Situation Analysis:

• Internal Analysis: This involves evaluating the company's strengths and weaknesses (SW) using tools like SWOT analysis. It considers resources, capabilities, and competitive advantages.