Winning strategy

1. Formulating a Winning Strategy

2. Introduction:
• Strategy formulation is the process by
which an organization chooses the most
appropriate courses of action to achieve its
defined goals. This process is essential to an
organization’s success, because it provides a
framework for the actions that will lead to
the anticipated results.
• Strategy formulation forces an organization
to carefully look at the changing
environment and to be prepared for the
possible changes that may occur.
• A company that has not taken the time to
develop a strategic plan will not be able to
provide its employees with direction or
focus.

3. Concept of Strategy:
• The term strategy has been borrowed from military. Today the
competition, a business faces, is similar to a war and every business wants
to be one step up over its nearest rivals.
• Strategy is a common theme of strategic decisions through which an
organization tries to relate itself with the environment which involves
major resources commitment to develop certain advantages which help in
achieving its vision and mission.

4. Characteristics of Strategy:
Strategy is a
systematic
phenomenon
By its nature, it
is
multidisciplinary
By its influence, it
is
multidimensional
By its structure,
it is hierarchical
By relationship,
it is dynamic
Strategy is almost
always the result of
some type of
collective decision
making process

5. Concept of Strategy
Formulation:
• 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.
• The process of strategy formulation basically involves of the
following five steps. Though these steps do not follow a rigid
chronological order, however they are very rational and can
be easily followed in this order.

6. Concept of
Strategy
Formulation
Strategic Intent
Situational Analysis
Setting Long-term Quantitative Objectives or Goals
Formulation of strategic Alternatives
Selection of Strategy

7. Types of Strategies:
1. Corporate Strategies or Grand Strategies
The Grand Strategies are the corporate level strategies designed
to identify the firm's choice with respect to the direction it
follows to accomplish its set objectives. The Grand
Strategies are also called as Master Strategies or Corporate
Strategies.

8. Types of Strategies:
2. Business Level Strategies:
Business-level strategy is an integrated and coordinated set of
commitments and actions the firm uses to gain a competitive
advantage by exploiting core competencies in specific product
markets. It indicates the choices the firm has made about how
it intends to compete in individual product markets.

9. Types of Strategies:
3. Functional Strategies
These strategies may be Operations Strategy, Marketing
Strategy, Finance Strategy, and Human Resource Strategy.

10. Barriers to
Strategy
Formulation:
LACK OF
INFORMATION
TOO MUCH DATA CONFUSION AND
DILUTION
OLD MINDSET.
BUSINESS RUNS IN A
CYCLICAL MODE
PRIOR BAD
EXPERIENCE AND
FIRE-FIGHTING
CONTENT WITH
CURRENT SUCCESS

11. Strategy Formulation at Engro Foods
• The food and its allied products industry is
considered Pakistan’s largest industry.
• Engro Corporation Limited (formerly known
as .Engro Chemical Pakistan Limited.) is one
of the largest industrial corporations in
Pakistan. It has following subsidiaries
business units;
i. Engro Fertilizer
ii. Engro Foods
iii. Engro Power Generation
iv. Engro Polymer & Chemical
v. Engro Vopak Terminal

12. Strategy Formulation at Engro Foods
• Engro Foods Limited was formed as a wholly owned subsidiary of Engro
Corporation in 2005. It start its operation in 2006 and engaged in the
manufacturing, processing and marketing of dairy products, ice cream and
fruit juices.

13. Strategy Formulation
at Engro Foods
• KEY SUCCESS FACTORS
1. Research & Development
2. Financial Position
3. Market Share
4. Product Quality
5. Price Competitiveness
6. Management
7. Global Expansion
8. Customer service
9. Network Sales And Distribution
10. Production Capacity

14. Summary
• Strategy formulation is the course of action
companies take to achieve their defined goals.
• All employees of an organization should be aware
of the company’s objectives, mission, and purpose.
• A strategic plan enables a company to evaluate
resources, allocate budgets, and maximize ROI
(return on investment).
• The lack of a strategic plan will result in an
organization being without direction or focus. The
company will be reactive rather than pro.
• Competitive strategy includes an evaluation of the
overall industry and marketplace, the nature of the
competition’s position, and the company’s internal
strengths and weaknesses. active.

15. • A strategic plan is a living document that
changes and grows as the conditions
around it change. If an organization
recognizes that it must constantly be aware
of the business world around it and must be
flexible to the changes that will inevitably
occur, then it will be in a position to adapt
and modify its plans to achieve maximum
success