8

Chapter
Strategy Formulation and
Implementation
The specific objectives:
1. IDENTIFY the basic steps in strategic planning, including
environmental scanning, internal resource analysis of the
company’s strengths and weaknesses, and goal
formulation.
2. DESCRIBE how an company implements the strategic
plan, such as how it chooses a site for overseas operations.
3. REVIEW the three major functions of marketing,
production, and finance that are used in implementing a
strategic plan.
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Chapter
Strategy Formulation and
Implementation
The specific objectives of this chapter are:
.
 EXPLAIN specialized strategies appropriate for
emerging markets and international new ventures.
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Strategic Management
 Strategic management
 Process of determining an organization’s basic mission and
long-term objectives, and then implementing a plan of action
for pursuing this mission and attaining these objectives
 How to allocate finite resources to achieve long-term
objectives
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Formulating human resource strategy

 Planning and directing of organisation towards the
predetermined goals and objectives
 Strategies are formulated in two ways:
 Through a formal process of strategic planning
 Through much less formal process taking place on ad hoc
basis, which is also called strategic adaptation
 Formulation is the phase in opportunities and constraints
are translated into goals and plans
 Scope, competitive focus and resource allocations and in
which human resource issues first arise.
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Formulation of human resource strategy

 Pattern of human resource related decisions and actions .

 Consists of planned and emergent elements.
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Planned Alignment
Realized HR
HR with
strategy
Strategy Business
strategy

Unrealized because of Unplanned actions

emerge because of

•Implementation of •Divergent Interesting actors.

problems
•Technical innovation.
•New business strategy
•Change of industry forces.
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linkages
 Parallel linkage
 Inclusion linkage
 Participation linkage
 Review linkage