S T R AT E GY
F O R M U L AT I O N
Strategic Management
PRESENTED BY:
GENRIE CANTILLO
Strategy
Formulation
Refers to the process of
developing strategies and
plans to achieve
organizational objectives and
goals.
Strategy
Formulation
Process
Strategy Formulation Process
• Environmental Analysis:
a. Internal Analysis
b. External Analysis
• Setting Objectives
• Strategic Choice
• Strategy Formulation
• Strategy Implementation
• Evaluation and Control
Two Major Type
of Strategy
C O R P O R AT E
LEVEL
S T R AT E GY
Corporate Level
Strategy
when a company analyzes its
entire business and
determines its direction to
increase growth or value.
Types
of Corporate
Level Strategy
GROWTH
S T R AT E GY
Growth
Strategy
plans or initiatives aimed at
increasing the size, revenue,
market share, or profitability
of a company's overall
operations.
Growth Strategy
Factors
• Market Penetration
• Market Development
• Product Development
• Diversification
• Horizontal Integration
• Vertical Integration
• Strategic Alliances and
Partnerships
S TA B I L I T Y S T RAT E GY
Stability
Strategy
focused on maintaining the
current position of an
organization without
significant growth or
expansion.
Stability Strategy
Factors
• Maintaining the Status
Quo
• Protecting Market Share
• Cost Reduction
• Asset Rationalization
• Selective Growth
• Risk Mitigation
• Strategic Flexibility
RETRENCHMENT
S T R AT E GY
Retrenchment
Strategy
Involve actions taken by a company
to reduce the scale or scope of its
operations. Retrenchment strategies
are aimed at improving efficiency,
reducing costs, and refocusing
resources on core areas of the
business.
Stability Strategy
Factors
• Turnaround Strategy
• Divestment Strategy
• Liquidation Strategy
• Cost-Cutting Strategy
• Restructuring Strategy
• Downsizing Strategy
BUSINESS
LEVEL
S T R AT E GY
Business Level
Strategy
refers to the set of actions
and approaches that a
company implements to gain
a competitive advantage
within a specific industry or
market segment.
Types
of Business
Level Strategy
COST LEADERSHIP
S T R AT E GY
Cost Leadership
Strategy
aims to become the lowest-
cost producer in an industry
while maintaining acceptable
quality standards.
Stability Strategy
Characteristics
• · Emphasis on cost
efficiencies
• · Continuous efforts
• · Targeting a broad
customer base
D I F F E R E N T I AT I O N
S T R AT E GY
Diff erentiation
Strategy
involves offering unique or
distinct products or services
that are valued by customers
and are perceived as superior
to those offered by
competitors.
Stability Strategy
Characteristics
• Focus on product innovation,
quality, design, features, or
customer service.
• Investment in branding and
marketing.
• Targeting specific customer
segments.
F O C U S S T RAT E GY
Focus Strategy
involves concentrating
resources and efforts on
serving a specific market
segment or niche with
specialized products or
services.
Stability Strategy
Characteristics
• Narrowing the focus to a
particular customer group.
• Tailoring products, services, or
marketing strategies.
• Building deep relationships with
customers.
THANK
YOU!
