The Process of Generating and Selecting Strategies
The process of generating and selecting strategies for a new product or service starts at a broad level and then narrows down to a more detailed level. In the early stages, the options are broad but are gradually distilled into a single, final choice. Eventually, each responsibility center will have its own specific goals and budget. Initially, only a few executives are involved in generating and selecting new strategies, but as the business grows, the involvement of more managers at lower levels increases, until all employees are included in the selection process.
The process of generating and selecting strategies is a two-way process. As the process continues, a company may go back to a previous stage to evaluate its strategy and decide which options are most advantageous. In addition, a company may also take one step back in the process and select a different strategy altogether. Ultimately, the decision of which strategy to pursue should be based on a firm’s strengths and weaknesses, as well as its ability to adapt to the new environment.
In the process of generating and selecting strategies, a firm should consider its internal assets and its external environment. Once a company understands its competitive environment, it can evaluate alternative strategies and make a recommendation for its future. The selection of the best option is a challenging process. Moreover, companies must ensure that it utilizes its unique assets and differentiates itself from competitors. The best strategy for a particular industry or company will be one that provides maximum opportunities for its stakeholders.
The next step is to generate a list of alternatives. The goal of this step is to identify potential strategies for a given situation and choose the best ones. These alternative strategies must be feasible and should be ranked by the participants. Once a final list is compiled, the winners will be chosen. These decisions will be made by a group of experts and will be considered the best option for the organization. This step is essential for developing a successful strategy.
- “A goal without a plan is just a wish.” — Antoine de Saint-Exupéry, French writer and pilot
The selection of a strategy is crucial to the future success of a company. Choosing the best strategy depends on the firm’s market position in the market and the stage of its product life cycle. A firm that is well established will have a different strategy than a newly-established firm. A strategy that focuses on increasing profits or increasing profit will be more likely to succeed in the long run. It will be the key to the success of a business.
Forming a strategy involves evaluating the data gathered from analysis. The first step is to rank the various strategies by their merits. Among these factors are their strengths and weaknesses, as well as their respective advantages and disadvantages. In addition to these, the process of generating and selecting strategies should involve managers and employees from previous activities. Involving employees in this process will help a company better understand the objectives of its strategic planning.
The next step of generating and selecting strategies is to prioritize the issues a company is facing. Developing alternative approaches to the same issue can be helpful. For instance, one strategy might be more effective than another if the company is aware of its strengths and weaknesses. The latter should be able to cope with the challenges it faces. This will enable the organization to make decisions on how to move forward. For example, if a company has a high risk tolerance, it should look into outsourcing the management function to help the organization deal with the issue.
The next step in strategy formulation is to choose among the competing strategies. This step is critical because it is an integral part of strategic marketing management. The firms have many potential strategies and evaluate them to determine which holds the most promise for their business. The best strategies will be those that have the most potential to achieve its goals. So, while the process of generating and selecting strategies can be overwhelming, it is important to consider all the options and determine the right strategies for your firm.
- “Building a visionary company requires one percent vision and 99 percent alignment.” — Jim Collins & Jerry Porras in their book Built to Last: Successful Habits of Visionary Companies
References:
SlideServe: https://www.slideserve.com/trina/topic-4-strategy-analysis-and-choice
WorldCampus: https://courses.worldcampus.psu.edu/welcome/mangt510/less02_11.html
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