Premium Essay

Strategy Formulation

In: Business and Management

Submitted By buxsara
Words 1955
Pages 8
Kotler, Keller, Brady, Goodman and Hansen (2009: 105) suggest that ‘a strategy is a game plan for a business to achieve its objectives; a statement of long-range intent and direction than short-term actions.’ However, all organisations exist in dynamic markets therefore its strategy focus on its market, its customers and its value proposition, may have to be operationalised as short term activity, in response to external, industry, market, competitor and customer analysis; using tools such as portfolio analysis namely the Boston Matrix, Porter’s five forces, Grant’s key success factors, the Ansoff Matrix, a micro and macro-environment analysis, industry and segmentation analysis, market positioning analysis, innovation and new product development and the marketing mix. Presumably, every organisation would be responsible to its stakeholders and shareholders and formulate its strategy being informed by such business investigation/intelligence. In the absence of such information in the Capitec Bank: Low-Cost Banking for Joe Average case study (Townsend and Mosala: 2006), such is going to be assumed.

The facts and figures from 2002 to 2006, point to the success in profit and volume growth of the Capitec strategy of ‘providing low-cost basic banking services to the lower to middle-income market, and to create a bank that offered everything to everybody.’ From public source information, the Fin24 and BusinessLive (2011) the focus on banking the unbanked remains a key national issue. While Capitec led market share by 2010, competitor activity by the big four banks was increasing in that market segment. Government legislation in banking services and its related initiatives challenged Capitec’s strategy for penetration of that segment. The strategic issue for Capitec’s consideration then would be: would that segment remain attractive and sustainable for it going forward?…...

Similar Documents

Premium Essay

Strategies Formulation

...STRATEGIES FORMULATION Business Strategies As there are rapid growth credit card business Hong Kong, Hang Seng Bank need to put more effort to increase their credit card customer base. They should put more resources in developing credit card products and improve services. Functional Strategies Product Strategies The Boston Consulting Groups(BCG) Growth-share matrix is applied to assess the sizes and positioning of the Credit Card. Hang Seng Bank Credit Card business is positioned as ႓Star႔ as it has covered high relative market share in fast growth credit card business. The Bank႒s credit card business is lucrative and will become the Bank႒s further cash cow. The bank has to spend substantial fund to keep up with high market growth rate and fight off its competitor႒s attacks. Product Development In order to serve in such a competitive environment. Hang Seng႒s target is to provide premium credit card products supported by premium customer Services. Apart from strengthening its existing business, the bank also made progress in diversifying its credit card business and expanding its customer base. Marketing To improve the credit card business in the industry, the bank has adopted a new marketing strategy. Traditionally the bank relied solely on the ႑word-of-mouth႒ approach to promote the services. Such strategy was most successful in the old days but would need to be supplemented in today႒s world of communications. More marketing promotions have thus...

Words: 729 - Pages: 3

Premium Essay

Splash Corporation-Strategy Formulation

...Distribute into small stores for expansion market (S1 S5 S7 T1) * Awareness campaign to spread brand loyalty based on product efficacy (S4 S6 T1) * Constant product development to avoid imitators (S1 S2 S3 T3) * Brand loyalty based on superior products (S4 S6 T2 T3) * Develop direct selling network in new markets to leverage brand loyalty (S1 S5 S6 T1 T2 T3) WEAKNESSES 1 Weak Brand Loyalty Outside the Philippines 2 Limited Market Knowledge and Experience Outside the Philippines 3 Low Advertising Budget 4 Neutraceuticals are seen as "folkloric" * Hire local management to build market * OFW word of mouth to build brand (W1 knowledge (W2 O1 O3 O5) W3 T1) * Develop a science-oriented brand image for H&W western market (W4 O3 O4) STRATEGY FORMULATION STAGE 1: Input EFE Matrix IFE Matrix STAGE 2: Matching IE Matrix STAGE 3: Decision QSPM Splash Corp. IFE Matrix Key Internal Factors Weight Strength Market Research Product Research & Development Product Diversity Product Efficacy and Reliability Reach Brand Loyalty Value for Money 0.15 0.1 0.05 0.1 0.07 0.1 0.06 4 4 3 4 4 4 3 0.6 0.4 0.15 0.4 0.28 0.4 0.18 Rating Weighted Score Splash Corp. IFE Matrix Key Internal Factors Weight Weakness Brand Loyalty Outside the Philippines Market Knowledge Outside the Philippines Low Advertising Budget Neutraceuticals are seen as "folkloric" Total 0.11 0.1 0.1 0.06 1 2 2 2 2 0.22 0.2 0.2 0.12 3.15 Rating Weighted Score Weight The weight assigned to a given......

Words: 1326 - Pages: 6

Premium Essay

Strategy Formulation

...tuned to dynamic competitive requirements and strategy * less hierarchical in structure and decision authority * less likely to provide lifelong careers and job security * Continually reorganizing to maintain or gain competitive advantage. (Judith Heerwagen, Ph.D., J.H. Heerwagen & Associates, 2010) Today’s businesses face unique challenges. Leaders are confronted with increased competition, globalization, and demand for growing social responsibilities, technological changes, and new strategic thinking. These need to be managed to build and sustain a high-performance organization. There are five integrated components of a high-performance organization: strategy, customer focus, leadership, processes, and values. There were \specific practices determined within each of the five components that were found to be critical. (American Management Association, 2007) INTRODUCTION The key component of any strategy statement is to set the long-term objectives of the organization. Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. Strategy formulation is a part of a strategic management process that comprises of environmental analysis, formulation, implementation and evaluation and control.   Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve......

Words: 1649 - Pages: 7

Free Essay

Strategy Formulation

...Unit 3 Strategy Formulation Ronald Rogers MGT680-1303A-01: Strategic Management American Intercontinental University Synopsis Often a business, particularly a startup, has little to no choice in when to introduce a product or service. However, given the opportunity, market information, and competition data, managers should be able to make valid choices concerning the release time of that product. This paper addresses the advantages and disadvantages of first move or late move into a market. It also explains how and why companies have succeeded and failed in both theories. Part One: First Mover Theory First Mover Advantages (FMA) FMAs have a unique opportunity to create barriers to competition such as limited resources and patents. They may have a sustainable advantage in technology that is Intellectual Property (IP), R&D, Patents, and resources. They have a monopoly of sorts, however short term that it may be (Lieberman & Montgomery, 1988). Rapid expansion of market share with a new product is extremely likely. Introducing new products involves in-depth market research and a large investment of time and other resources. The results of the market penetration by a first mover can be difficult to overcome for subsequent entries. Setting the benchmark is an advantage that first movers can exploit. If they introduce a product that becomes a high demand item, establish the brand name and provide good service, then they set the bar really high for late entries...

Words: 3112 - Pages: 13

Premium Essay

Mintzberg’s Ten Strategy Formulation Process Comparedd

...appraises and controls the industries and the business in which the company is involved; evaluates its rivals and sets organizational purpose and strategies to address with all existing and potential competitors; and then reevaluates each strategy after a definite time period to determine how it has been applied and whether it has thrived or needs replacement by a new strategy to meet changed environments, new rivals or new political, economical social, technological environment. Strategic management is very important and broader area than any specific functional management area. It determines whether an organization excels, survives, or dies. It is very essential because it leads all the functional arenas of the business. It is generally believed that businesses, which develop formal strategic management systems, have a greater possibility of success than those, which do not. (Jauch and Glueck,1988,) Strategic management helps organizations predict future problems and opportunities. It endows with crystal-clear vision, mission, objectives, and strategies that guide organization into the secured future. Strategic management is a stream of decisions and actions. (Jauch and Glueck,1988). It is a procedure by which top-level management decides and does for the success of the company. It helps to determine the best possible strategy so that company could win the game in competitive business environment. Thus, strategic management is a procedure where a strategist finds......

Words: 5438 - Pages: 22

Premium Essay

Strategy Formulation, Situation Analysis and Business Analysis

...Strategy Formulation: Situation Analysis and Business Strategy Institut für Strategisches Management Institut für Strategisches Management Situational Analysis Strategy Formulation - developing a corporation’s mission, objectives, strategies and policies Situation Analysis - the process of finding a strategic fit between external opportunities and internal strengths while working around external and internal weaknesses Wheelen / Hunger, 2010, p 224 SWOT Analysis SWOT- Strengths-WeaknessesOpportunities-Threats Strategy = opportunity / capacity Opportunity has no real value unless a company has the capacity to take advantage of that opportunity Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management Distinctive Competency – Success ? A distinctive competency in a key resource or key capability of a company is no guarantee for a competitive advantage Weaknesses in other resource areas can prevent strategy from being successful Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management SWOT - Analysis Broader view of strategy SA = O / (S – W) Strategic Alternative = Opportunity : Strengths – Weaknesses More investment in strengths to make them stronger ? More investment in weaknesses to at least make them competitive ? Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management Criticisms of SWOT analysis Generates lengthy lists Uses no weights to reflect priorities Uses ambiguous words and...

Words: 1590 - Pages: 7

Premium Essay

Role of Social Network in Marketing Strategy Formulation for Sustainability and Development

...factor for the marketers in formulating strategy for sustainability of the development of their business. KEYWORDS: Social media, Social networking sites, advertisement, online purchase, purchase satisfaction. STRATEGY APPROACH: Social media is an internet based platform which enables its users to generate, share and get feedback for content created in open autonomous, unconstrained manner, and which facilitates social interaction among the individuals and build relationship. Social Networking sites like Facebook, LinkedIn, Twitter,Google Plus, Orkut, You Tube etc. are the vehicle for the member of these sites to do their transactions. Social Media Marketing has evolved into a vital avenue for promoting companies, products, events and causes. Marketers are creating their own websites to facilitate their customers and attract future consumer (prosumers) through the advertisements on the social media sites to build their own network of business and relationship. INTRODUCTION: In today’s ever changing landscape, new information based plot form such as web2.00 has multiplied internet content at exponential rate and are now available to almost anyone with internet access. Social Media and Social Network permeating Society more and more every day. Social Media work like most areas of human endeavor, by bringing people with similar interests and characteristics together. “A sound Social Media Marketing strategy creates desire for a brand in an......

Words: 2811 - Pages: 12

Free Essay

Strategy Formulation

...Globalization Versus Normative Policy: A Case Study on the Failure of the Barbie Doll in the Indian Market Priti Nemani* INTRODUCTION .......................................................................................... 97 I. GLOBALIZATION AND THE MULTINATIONAL ........................................ 99 A. Globalization Defined ................................................................ 99 1. The Key to the Kingdom: The Globalized Brand ............. 100 B. Barbie in the Global Economy ................................................. 102 1. Barbie‘s History................................................................. 102 2. Corporate Philosophy and Marketing Strategies behind Barbie ................................................................................ 105 II. MATTEL‘S BUSINESS VENTURES IN INDIA ......................................... 107 A. The Late 1980s: Barbie’s Tango with the License Raj ............. 107 1. The Licensing System ....................................................... 109 2. Limits on Foreign Direct Investment .................................110 3. Mattel‘s Joint Venture ......................................................... 111 B. India’s Economic Liberalization and Mattel’s Second Chance at Success...................................................................................113 1. India, the IMF, and the World Bank ...................................113 2. Mattel in India from 1993-2010 ...............................

Words: 13156 - Pages: 53

Premium Essay

Assessing Strategy Formulation Worksheet

...Assessing Strategy Formulation Worksheet The assessment provides a systematic way of rating your organization’s ability to formulate strategies. Instructions Below is a list of guidelines from Yukl, (p. 377) and David (p. 338) related to effective strategy formulation. Use the following scale to indicate the extent to which your organization incorporates these guidelines in their formulating strategic plans. |0= not at all |3= to a great extent | |1= to very little extent |4= to a very great extent | |2= to a moderate extent | | Step 1: Rate your organization’s strategy formulation process on the following: Not at Very Little Moderate Great Very Great all Extent Extent Extent Extent Rationale Guidelines | | | | | | | |Determines long-term objectives and priorities. | 0 | 1 | 2 |3 | 4 | | |Assesses current internal strengths and weaknesses. | 0 | 1 | 2 |3 | 4 | | |Identifies core competencies | 0 | 1 | 2 |3 | 4 | | |Evaluates the need for a major change in strategy. | 0 | 1 | 2 |3 | 4 | | |Identifies promising strategies. | 0 | 1 | 2 |3 | 4 | | |Evaluates the likely outcomes of a strategy. | 0 | 1 | 2 |3 | 4 | | |Involves other executives in the...

Words: 259 - Pages: 2

Premium Essay

Business Business Strategy Formulation Theory, Process, and the Intellectual Revolution

...Business Strategy Formulation: Theory, Process, and the Intellectual Revolution Anthony W. Ulwick QUORUM BOOKS Business Strategy Formulation Business Strategy Formulation Theory, Process, and the Intellectual Revolution Anthony W. Ulwick QUORUM BOOKS Westport, Connecticut • London Library of Congress Cataloging-in-Publication Data Ulwick, Anthony W., 1957– Business strategy formulation : theory, process, and the intellectual revolution / Anthony W. Ulwick. p. cm. Includes bibliographical references and index. ISBN 1–56720–273–X (alk. paper) 1. Strategic planning. I. Title. HD30.28.U44 1999 658.4'012—dc21 99–13714 British Library Cataloguing in Publication Data is available. Copyright ᭧ 1999 by Anthony W. Ulwick All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher. Library of Congress Catalog Card Number: 99–13714 ISBN: 1–56720–273–X First published in 1999 Quorum Books, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc. www.quorumbooks.com Printed in the United States of America The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48–1984). 10 9 8 7 6 5 4 3 2 1 Dedicated to my wife, Heather Lee, and our son, Anthony—my sources of love and inspiration. Contents Preface Acknowledgments Introduction 1.......

Words: 80455 - Pages: 322

Free Essay

Strategy Formulation. Politics

...Introduction Strategy formulation is at the core of any firm which is willing to sustain in its environment, rather than being taken by surprise with an unfavorable turn of events, which could threaten its survival. The environment depicts all the forces that interact with and influence a firm in its operations. These forces are more or less important and threatening to a company. They range from the customers to the competition, through laws and environmental regulations and encompass a very broad number of actors in any competitive environment. Political activity is perhaps one of the most important forces to monitor and manage for companies. It relates to the laws and regulations that shape the competitive environment, and companies have numerous opportunities and ways to influence them. In this regard, this paper will address the ways that firms have to manage the uncertainty of their environment through corporate political strategies. The analysis will start by clarifying the relations between the firm and its political environment, in order to see which topics deserve a stronger focus when developing a corporate political strategy. Then, a distinction will be drawn between corporatist political systems and pluralist ones, so to give an indication on which kind of strategy to choose. Finally, it will be possible to give more details about the means that companies have to pursue their corporate political strategy, considering that their relevance depends on the......

Words: 1664 - Pages: 7

Premium Essay

Effective Strategy Formulation

...1. Executive Summary Intent of this report is to gain a better understanding of the effects of the external environment to an organization. We have selected “Dell” as the organization and we wish to study the planning and implementation of Dell’s Strategies. Report starts from briefing the background of this chosen organization. Moreover, some of the external factors have been discussed by presenting a view of SWOT analysis of ‘Dell’. Further part of the report will illustrate the review of already existing business plan and strategy of that enterprise. Furthermore, listed are the factors affecting this strategic plan, in which vision & mission, objectives and other measures have been taken into account. Despite their strengths Dell has many challenges it needs to overcome right from the increase in the competitors to a dire need in breakthrough innovation which is essential. With the increase in innovation in the market the computer systems are becoming outdated, so Dell should constantly come out with new products. Also, People need the quality products at low price which was Dell’s strength due to its customized solution, but now its competitors are coming up with products in same price range. To identify these business concerns, it has been noted that the company has a sound and dynamic consideration while managing its product portfolio as well as conducting its target markets. This has helped the company to stabilize its financial status through sales generation and......

Words: 4284 - Pages: 18

Premium Essay

Strategy Formulation

...1- Strategy statement for Nokia: ● Goals: Provide good cell phones qualities Help people in general and consumers of Nokia products in particular to communicate more easily Work to enable people to get more life’s opportunities thanks to Nokia products ● Scope: Produce the basic components in China to reduce costs and meet the financial requirements of customers and therefore provide phones to the largest number of people ● Advantage: Scale-based assets and capabilities Leading brand Service quality Best mobile devices everywhere Strategy statement for University College Cork: ● Goals: Propose recognized global quality programs Adapt the means of the transmission of the information to the requirements of the today's world Diversify post graduate programs to attract more students ● Scope: Expand the research department Creation of a new infrastructure that will house the courses that correspond to new programs ● Advantage: A worldwide reputation and programs and faculty quality. Nokia differs 2- Strategy statement of the university of Nairobi : Vision: A world-class university committed to scholarly excellence Mission: To provide quality university education and training and to embody the aspirations of the Kenyan people and the global community through creation, preservation, integration, transmission and utilization of knowledge Objectives: Provide quality student welfare services. • Streamline and rationalize......

Words: 253 - Pages: 2

Premium Essay

Strategy Formulation and Implementation

...Strategy Formulation and Implementation MBA 980 Spring, 2009 Professor Jay Dial Office 860 Fisher Hall Email dial.12@osu.edu Phone 292-5438 Reading packet There is a required reading packet available at Uniprint-Tuttle Park that includes course readings, cases and lecture notes for classroom discussion. This is copyrighted material and each student must purchase an individual copy of the reading packet. Additional highly recommended readings will be selected from Management Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate......

Words: 6376 - Pages: 26

Premium Essay

1. Describe the Activities Involved in Strategy Formulation Versus Those Involved in Strategy Implementation.

...1. Describe the activities involved in strategy formulation versus those involved in strategy implementation. The strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. The process of strategy formulation basically involves six main steps. The first step is developing a vision and mission. The key component of any strategy statement is to set the long term vision and mission of the organization. These are known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives. While fixing the organizational vision and mission, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of mission. Once the mission and the factors influencing strategic decisions have been determined, it is easy to take strategic decision. The second and third steps are identifying an organization’s external opportunities and threats and determining internal strengths and weaknesses. These are to evaluate the general economic and industrial......

Words: 722 - Pages: 3