1) The strategy formulation process sets the foundation for a company's future by developing a solid strategy through following best practices. It involves crafting mission, vision and value statements, setting strategic goals, performing strategic analysis, and formulating the strategy. 2) Most successful companies follow a systematic strategy development process starting with defining their mission, vision and core values, then identifying strategic goals and performing external and internal analysis, and culminating in the formulation of a strategy. 3) Strategic goals should quantify the vision by identifying the "value gap" or difference between the desired outcome and current reality to establish targets for the new strategy to achieve.