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Business Strategy Formulation: Crafting a Roadmap to Competitive Advantage
In the business world, a good strategy is like a reliable GPS — it helps an organization navigate toward success in a constantly changing landscape. But instead of just plugging in an address, business strategy formulation is a deliberate process that demands insight, flexibility, and, often, a touch of boldness. Here’s a peek under the hood at what goes into crafting a business strategy that actually works (and doesn’t get a “Recalculating route” message every mile).
What is Business Strategy Formulation?
At its core, business strategy formulation is about creating a game plan that enables an organization to build and maintain a competitive advantage.
Strategic management, as outlined in any typical MBA program, aims to answer a critical question: Why do some firms outperform others? The answer lies in how they analyze opportunities, make informed choices, and implement those choices without wearing out the “undo” button. In other words, crafting a strategy involves three big steps: analysis, decisions, and actions.