Strategy Formulation versus Strategy Implementation
The Comparison & Contrast list
Summary of Comparison & Contrast between strategy formulation & implementation
Organization strategy entails a pattern of decisions that establishes and reveals its
objectives, purposes, and goals. The strategy produces principal policies and plans in order to
achieve organization targets.
Organization strategy involves defining the range of businesses, which the
organization intends to pursue, economic, and human resource organization. Moreover, the
strategy encompasses the nature of economic and noneconomic contribution, which the
organization aims to make to shareholders, employees, communities, and customers.
To achieve its objectives, organization needs to formulate and implement sound
strategies. Strategy formulation and implementation are two important aspects, which are
interrelated. Strategy formulation and implementation are important facets of strategic
management in organization for long-range performance. (Hill and Jones 2012:20-21)
The strategic-management process consists of three stages: strategy formulation,
strategy implementation, and strategy evaluation (Fred R. David 2011:6).
Strategy formulation entails development of long-range plans for effective
management of environmental opportunities and threats. This is in the light of organization
strengths and weaknesses. Hill and Jones (2012:20).
State that formulation encompasses defining organization mission, objectives, setting
policy guidelines, and developing sound strategies. Formulators of strategy attach some
estimate or risk to discernible alternatives. They appraise organization strength and
drawbacks with the resources, which are available. Formulation gives a clear set of
recommendations in order for the organization to accomplish its mission successfully (Hill
and Jones 2012:20).
Top managers have the best perspective to understand fully the ramifications of strategy-
formulation decisions; they have the authority to commit the resources necessary for
implementation. (Fred R. David 2011:6)
Formulation of organization strategy entails creating sustainable competitive
advantages. This happens through giving prudent and practical solution to problems that may
affect the organization.
Strategy implementation encompasses putting strategies, which organization
formulates into practice. This entails designing and ma