The keen faculty of strategy tends to extract and refine tidings by careful survey of situations and assessment before initial or next moves. This paper discusses strategy formulation and correlates its elements of data synthesis, environmental scanning and SWOT analysis. The assemblage of these constituents of strategy formulation presents challenges of solving a jigsaw puzzle for organizational leadership. Theories of strategy or theories of action, within the context of organizational theories generally contain basic assumptions. These theories propose what to look for, what steps to take and what to expect by organizational leadership. Literature on strategy formulation promotes the trio of environmental scanning, data synthesis and SWOT analysis as tool-kit items for strategy formulation. The paper describes and explains the workings of these three components and draw conclusions on their foundational value in the strategic management process. A simulation exercise is designed for senior executives to practice on the application of strategy formulation in real world situations.

1. STRATEGY FORMULATION: DATA
SYNTHESIS, ENVIRONMENTAL
SCANNING AND SWOT ANALYSIS
BY
TANKO AHMED fwc
Senior Fellow (Security & Strategic Studies)
Research Directorate, NIPSS, Kuru – Jos, NIGERIA

2. A Paper Presented to Participants of the
NIPSS Policy, Strategy and Leadership
Course No. 21 (4th – 29th April 2016)

3. Figure 1: Analogy of Molecular
Modification as Strategy Formulation
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4. A Prologue
• The keen faculty of strategy extracts and
refine tidings by careful survey of situations
and assessment before initial or next moves.
• This paper discusses strategy formulation and
correlates its elements of data synthesis,
environmental scanning and SWOT analysis.
• These constituents of strategy formulation
pose challenges of solving a jigsaw puzzle for
organizational leadership.

5. Some Illustrations
• “Strategic formulation will help you fully
uncover your available options, set
priorities for them, and define the
methods to achieve them – Robert J. McKain
(n.d.)
• Strategy formulation is an initial or
ongoing process of perceiving new
position or opportunities which should be
embedded in organizations. – Harvard Business
Review Blog Network (n.d.)

6. INTRODUCTION
“Strategy formulation is not the consequences of
planning but its starting point”
– Henry Mintzberg

7. Background
• Strategic Formulation employs basic
information, general situation, and close
examination of organizations.
• These three courses of action are often
expressed in terms of data synthesis,
environmental scanning and SWOT analysis.
• All together, the trio represents the tool-kit
items of strategy formulation.

8. Literature Review
• Literature on strategy related issues has
experienced advancement and spread from classical
military operations to contemporary organizational
studies and practice (Mitchell, 2009; Acur & Englyst, 2006; Li,
Guohu & Eppler, 2008; Bordean, et al. 2010).
• Strategy formulation skills and philosophy tend to
uplift, embolden and expand the capacity and
frontier of organizational leadership (Acur & English, 2006;
Li, Guohu & Eppler, 2008; Bordean, et al. 2010).
• Presently, the venture of systematic planning and
execution are deemed as attributes of middle and
higher senior executives of organizations.

9. Literature Milestones
• Acur & Englyst (2006) expound on thinking phases and
generic approaches for organizational strategy formulation
including assessment and success criteria for organizations.
• Li, Guohu & Eppler (2008) demonstrate and review literature
on how to make strategy formulation works for
organizations.
• Mitchell (2009) emphasizes on organizational strategy
formulation as tool for corporate rather than military
operational instrument.
• Bordean (et al. 2010) investigates the application of strategy
formulation to companies as part of contemporary
challenges and opportunities to organizations and
leadership.

10. Gap to Fill
This paper works on correlation of data
synthesis, environmental scanning and
SWOT analysis as components of strategy
formulation.

11. Theorem
• Theories of strategy or theories of action associated
with strategy formulation flow along conceptual
transition overtime (Barney, 1986; Zan, 1990; Porter 1991;
Yarger, 2006; Chamberlin, 2010).
• There is a proposal for an integrative framework for
theory of strategy in managerial decisions and
actions (Barney, 1986; Zan, 1990).
• Also, there has been a long standing progress in the
field with emphasis on dynamic theory of strategy;
and cross-sectional and longitudinal problems in
organizational environment (Porter,1991).

12. A Theoretical Framework
• Yarger (2006) provides theories of action to the 21st
century organizational leadership in his work: ‘The Little
Book on Big Strategy’.
• Chamberlain (2010) reviews past trends and treat left-
over areas including concepts, forces, process and
mechanisms by with strategy can take effect.
• Theories on strategy formulation are inclined to
interactive nature of its components for rational
propositions.
• Theoretical framework for this paper presupposes the
correlation of strategic formulation components of data
synthesis, environmental scanning and SWOT analysis.

13. Problem Statement
• The use of strategy is avail to management process
of organizations in the systematic incorporation of
scientific observations and methods in formulating
plans derived from mission and vision statements.
• Strategy formulation poses prospects as much as
challenges to organizational leadership in the
strategic management process.
• There is the need for middle and higher executives
of organization to be acquainted with the rigours of
conducting the strategy formation process.

14. Points of Inquiry
• To conceptualize strategy formulation and its major
components;
• To itemize and correlate data synthesis,
environmental scanning, and SWOT analysis in
strategy formulation;
• To establish strategy formulation as starting point of
the strategic management process or planning;
• To explain the conduct of strategy formulation as tool
for organizational leadership; and
• To draw conclusion and suggest the way forward for
success and survival of organizations.

15. CONCEPTUAL
FRAMEWORK

16. Strategy
• Strategy focuses on possible courses of decisions
and action utilizing available resources and
determined by environmental influence.
• It is the practice of higher level plans or
leadership in achieving set goals of organizations
under ever changing situations or environments.
• It also involves patterns in streams of decisions
and actions that shape the future into desirable
ends by means of available resources (Mintzberg,
1978; Mintzberg & Quinn, 1996; Kvint, 2009; Freedman,
2013).

17. Strategy Formulation
• Strategy formulation is the task of analyzing the
organization’s internal and external environments,
and selecting or devising appropriate plans or
strategies in setting goals or objectives and ways of
achieving them.
• It involves the establishment or adjustment of
mission and vision statements, environmental
analysis or scanning, setting goals or objectives, and
the ways and means for attainment (Nabradi, n.d;
Mitchell, 2009).
• It is a living document that changes and grows time
or events.

18. Data Synthesis
• Data is a body of factual information assembled for
use in planning, decision making or drawing
conclusions.
• Synthesis refers to result of combination, of
different ideas, influences or data for the purpose
of producing structures or relationships, known as
formulation.
• Data Synthesis combines outcomes from different
assumptions on overall effects of particular
intervention to arrive at clear pattern for decision
and action (Ellerby, 2009; Berg, 2013; Ryan 2013).

19. Environmental Scanning
• Environment is the surrounding influence, settings,
situation, atmosphere, background, conditions or
circumstances which determining the activities or fate
of any given venture.
• Scanning refers to detailed or thorough examination
of the environment for the purpose of extracting
much needed data.
• Environmental Scanning is the systematic process of
close monitoring for environmental signals for use in
strategic decision making, action or formulation of
tasks (Zhang, Majid & Foo, 2010).

20. SWOT Analysis
• SWOT analysis is a veritable instrument or method of
strategic planning use in strategy formulation.
• It evaluates strengths or advantages over others;
weaknesses or disadvantages relative to others;
opportunities or chances for progress; and threats or
causes for concern.
• It is the work room of strategy formulation where
results of data synthesis and environmental scanning
are put together for evaluation.
• It is used to identify and align strategies to available
resources; and capabilities to realities of the
environment.

21. Organizational Leadership
• Organizational leadership is the management
staff that provides inspiration, objectives,
operational oversight and other
administrative services to the organization
often seen in Mission and Vision Statements
(BusinessDictionary.com).

22. Strategic Management Process
• The strategic management process (SMP) is
an objective, logical, systematic and
continuous approach for making major
decisions and taking actions in an
organization (Yousuf, 2016).
• It is defined as a dynamic process of strategy
formulation, implementation, evaluation and
control (Parnell, 2005; David, 2008; Vasile & Iancu,
2009; Vatchkova, 2010; Hill, Jones & Schilling, 2015;
Yousuf, 2016).

23. STRATEGIC FORMULATION
AND
DATA SYNTHESIS

24. The Sense in Data
• Data is most crucial in the process of
choosing appropriate courses of action
towards defined goals.
• Strategy formulation relies heavily on data
for planning, decision making and action for
overall effects (Ellerby, 2009).
• Strategic control can only be achieved by
data synthesis in which information is
gathered, refined, applied and reviewed
systematically over time (Ulwick, 1999).

25. Data Synthesis in Strategic Formulation
• Data Synthesis examines and infers relationships
among sources in a clear, obvious and definite
format for useful in strategic formulation.
• It combines information and ideas to create and
develop more ideas, better focus, wider perspective
in an impending strategic formulation cycle.
• Output of data synthesis is useful for core insight,
critical thinking and testing of ideas in making next
moves.
• These turn out good analysis as well as what to do
next in strategy formulation towards set objectives.

26. STRATEGIC FORMULATION
AND
ENVIRONMENTAL
SCANNING

27. The Keen Eyes of Strategy
• Strategy requires keen sense, balanced mind,
fast thinking, quick response and accurate
moves.
• Visual thinking improves mental attention
skills associated with environmental scanning
(Bohannon, 2009).
• A corresponding example of the keen eyes of
strategy is seen in the sharp sense and high
aptitude of expert computer gamers.

28. Environmental Scanning in Strategic
Formulation
• As organizational environment increasingly become
uncertain and complex, environmental scanning
enables organizations to detect change and formulate
adaptive strategies (Zhang, Majid & Foo, 2010).
• In strategic sense, environmental scanning is also
about mastering the immediate locality to national,
regional and global surroundings within which the
organization operates.
• It includes scanning strategies, internal factors and
perceived change leading to purposive strategy
formulation.

29. STRATEGIC FORMULATION
AND
SWOT ANALYSIS

30. SWOT Analysis in Strategic Formulation
• The process of taking stock of activities requires
thorough examination of internal status and
external context of organizations (Keeley, n.d.).
• SWOT analysis allows organizations to recognize
themselves and their surrounding environments in
order to plan, implement and monitor their
strategies (Hashemi, et al. 2012).
• Strategy formulation is concerned with areas of
strengths or advantages, contributions of external
factors or opportunities, as well as watching for
internal weaknesses and external threats.

31. STRATEGY FORMULATION AS
STRATEGIC TOOL OF
ORGANIZATIONAL LEADERSHIP

32. Strategy Formulation as Leadership
Instrument
• Strategy is “the match an organization makes
between its internal resources and skills and the
opportunities and risks created by its external
environment” (Grant, 2001 p. 114).
• The strategic formulation cycle consisting of
data synthesis, environmental scanning and
SWOT analysis submits to continuous review.
• It is an effective instrument of organizational
leadership for effective and efficient attainment
of mission and vision.

33. Strategy Formulation and
Organizational Performance
• Consensus on objectives or methods and
collaboration amongst management team
members positively relates to organizational
performance (Dess, 2006).
• Leadership has great influence on organizational
performance particular as it relates to strategy
formulation and day to day decision making
actions.
• All these are tied to the cycle of vision, mission
and strategy formulation leading to action plan.

34. CONCLUSION

35. Summary
• The paper conceptualizes strategy formulation
and its major components; and discusses and
correlates data synthesis, environmental
scanning, and SWOT analysis in strategy
formulation.
• It establishes strategy formulation as starting
point of the strategic management process or
planning; and explains the conduct of strategy
formulation as tool for organizational
leadership.

36. Conclusion
• The strategy formulation is proposed as a
crucial organizational leadership instrument
of the strategic management process with
illustrations.
• The paper draws conclusions on the
foundational value and contribution of
strategy formulation in the strategic
management process.

37. Recommendations
• It strongly recommends knowledge and skills
on strategy formulation and strategic
management process for middle and higher
executive who constitute organizational
leadership.
• A simulation exercise is designed to practice
on the application of strategy formulation in
real world situations.

38. SIMULATION EXERCISE
Groups of Course Participants are to prepare
Strategy Formulation Schedule for the National
Institute for Policy and Strategic Studies from
the amended Mission and Vision of previous
Exercise.

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