FINALS REVIEW

• Strategic Formulation can also be referred to as Strategic Planning
• A strategy is a broad plan developed by an organization to take it from where it is to where it wants to be.
• Strategy formulation is the process of developing the strategy
• Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision.
• A Mission id is the reason for the organization existence
• Objectives are the end result of planned activity
• The Internal Environment refers to manpower, machinery, methods, procedures and other resources of the organization.
• The external environment refers to government, competition, consumers, technological developments and other environmental factors that affect the organization.
• Environmental scanning can be defined as ‘the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market’.
• Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance.
• Decision-making is a process of selecting the best alternative from among various available alternatives.
• An environmental analysis is an extremely important tool in understanding and decision making in all situation of the business.
• A SWOT analysis is a method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture
• Strength are the basis on which continued success can be made and continued/sustained.
• These weaknesses deteriorate influences on the organizational success and growth.
• Opportunities arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable
• Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business.