In today’s world managers are increasingly pressured to achieve targets and goals with limited and scarce economic resources. By deploying a well-formulated strategy, the scarce resources and efforts can be directed towards a charted course, eliminating waste from lacking direction. Without a strategy to provide an overall direction, the functional activities can run the risks of missed opportunities, fragmented and wasted effort, working at cross purposes, and getting involved in internal conflicts. The objective of formulating a corporate strategy is to allow a company to identify a competitive advantage and sustain that competitive advantage and survive, forge ahead and stay ahead of the competition.
In crafting organizational strategies the company’s key objectives should drive the process. For this purpose, it is important that the strategy formulation process is initiated with a clear understanding of “What” the company’s business mission is, “Who” are the customers, “What” do the customers consider as value, “What” has been the organization’s results so far in catering to these needs and “What” are the future plan in meeting the consumer needs (Druker).
In order to formulate a successful corporate strategy, it is important to understand what delineates Corporate Strategy. A company’s strategy can be understood as the game plan the management is using to stake out a market position, conduct operations, attract satisfy and retain customers, compete successfully and achieve organizational objectives. The process of formulating corporate strategy cannot be carried out in an ad hoc fashion but follow a systematic process that involves five key steps. The Five Key Tasks of Strategy formulation includes identifying or developing Strategic Business Vision and Mission for the organization, Setting objectives, Create strategic plans to accomplish purpose and objectives. implement the strategic plans and finally evaluate results and modify or change strategies in response to the dynamic business conditions (Thomson &. Strickland 2003). .