Henry Mintzberg, after much research found that strategy formulation is typically not a regular, continuous process. The ultimate goal of every strategy that is being formulated should be to deliver outstanding value to customers at all times. Strategies, once formulated, must ensure a best fit between goals, resources and effort put in by people. Since strategies consume time, energy and resources, they must be formulated carefully. Once the strengths are known, opportunities to be exploited are identified a long-term plan is chalked out for concentrating resources and effort. To achieve this, a firm seeks to find out what it can do best. There is a conscious and deliberate attempt to focus attention on what the firm can do better than its rivals. It seeks to set the long-term goals that help a firm exploit its strengths fully and encash the opportunities that are present in the environment. Strategy formulation is the process of offering proper direction to a firm. Challenges Faced during Strategy Formulation.Tools and Techniques of Strategy Formulation.Subjective Aspects in Strategic Formulation.
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