Strategy Formation:

Strategy Formulation and

Implementation
• Strategy formulation is the process of
using available knowledge to document
the intended direction of a business and
the actionable steps to reach its goals.
This process is used for resource
allocation, prioritization, organization-
wide alignment, and validation of
business goals.
• Implementation is the execution or
practice of a plan, a method or any
design, idea, model, specification,
standard or policy for doing something.
As such, implementation is the action
that must follow any preliminary
thinking for something to actually
happen.
Evaluating different approaches to strategy
formation involves assessing their effectiveness,
suitability for the organization, and alignment
with its goals and values. Common evaluation
criteria include strategic fit, feasibility, resource
allocation, adaptability to change, and potential
for competitive advantage. Each approach, such
as top-down, bottom-up, or collaborative, has its
pros and cons, which should be weighed against
the organization's context and objectives.
Strategic assumptions are the
assumptions that are held by decision-
makers when building a strategic plan.
All strategic plans should be built upon a
grounded, validated and accepted set of
strategic assumptions. Any strategic
plan or decision is only as good as the
strategic assumptions upon which it is
based.
Strategy Formation in International Context

The strategic management literature does

not clearly explain how far strategy
formation differs in international firms than
strategy formation does in domestic firms.
Some authors do not view the strategy
development and implementation process in
an international context any differently from
that in general strategic management.
Thank you!