Strategy: Formulation, Implementation, and Monitoring

Abstract

The study of corporate strategy within graduate schools of business has been under way for many years. With the growing complexity of the world and with the increased size of business firms, the need for planning and the development of a corporate strategy has become recognized in the business firm. While many areas of management have been subjected to scientific analysis, the strategy area continues to be characterized by a commonsensical, judgmental approach. This paper is an attempt to impose structure upon the various problems inherent in the process of formulating, implementing, and monitoring corporate strategy in modern business firms. We begin by identifying the relevant considerations in the strategic planning process and then discussing the manner in which formal models can prove useful to executives in dealing with various subproblems. The paucity of valid, normative propositions in the corporate strategy literature indicates the need for a more scientific approach to this important field. The nine major steps that constitute the strategic planning process are as follows: (1) formulation of goals; (2) analysis of the environment; (3) assigning quantitative values to the goals; (4) the microprocess of strategy formulation; (5) the gap analysis; (6) strategic search; (7) selecting the portfolio of strategic alternatives; (8) implementation of the strategic program; (9) measurement, feedback, and control.' This paper will review these nine steps and present selected ideas that demonstrate how the strategic planning process could be improved through use of analytical procedures. The nine steps should not be viewed as a once-and-for-all process of strategic planning, but, rather, as a continuous, ongoing process.2 The whole procedure is a dynamic

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