Analysis of the External macro environment (PEST analysis)The internal analysis can identify the firms

strengths and weaknesses and theexternal analysis reveals opportunities and threats. A profile of the
strengths,weaknesses, opportunities, and threats is generated by means of a SWOT analysisAn industry
analysis can be performed using a framework developed by Michael Porterknown as Porters five forces. This
framework evaluates entry barriers, suppliers,customers, substitute products, and industry rivalry.c) Strategy
FormulationStrategy Formulation is the development of long-range plans for the effectivemanagement of
environmental opportunities and threats, in light of corporatestrengths & weakness. It includes defining the
corporate mission, specifyingachievable objectives, developing strategy & setting policy guidelines. i) Mission
Mission is the purpose or reason for the organization’s existence. It tells what the company is providing to
society, either a service like housekeeping or a product like automobiles. ii) Objectives Objectives are the end
results of planned activity. They state what is to be accomplished by when and should be quantified, if
possible. The achievement of corporate objectives should result in the fulfillment of a corporation’s mission.
iii) Strategies Strategy is the complex plan for bringing the organization from a given posture to a desired
position in a future period of time.d) Policies A policy is a broad guide line for decision-making that links the
formulation ofstrategy with its implementation. Companies use policies to make sure that
employeesthroughout the firm make decisions & take actions that support the corporation’smission,
objectives & strategy.d) Strategy ImplementationIt is the process by which strategy & policies are put into
actions through thedevelopment of programs, budgets & procedures. This process might involve changes 7