Strategy Formulation is an Essential Component of the P-O-L-C Framework
Developing a strategic plan is a significant part of planning. It involves a lot of people, groups and ideas. It enables an organization to move from a vision to goals. A good strategy enables an organization to compete well in an ever-changing environment.
A strategy should be able to capitalize on the strengths and weaknesses of an organization to take advantage of opportunities and mitigate threats. In order to do this, a company should draw on both internal and external analysis.
A good strategy is one that is well-designed and communicated to all employees. It also involves active participation by everyone involved in the process.
There are three main areas of focus in a strategy formulation process: internal analysis, external analysis and design. The internal analysis involves determining the strengths and weaknesses of the firm and then creating a plan to combat these. The external analysis involves assessing the competitiveness of the firm's industry. This includes the five forces of competition: power of suppliers, product substitutes, new entrants, the power of buyers and the threat posed by slow industry growth.
The most important thing to remember is that the best strategies are the ones that are based on a good SWOT analysis. A good strategy is also based on a sound understanding of the implications of segments. The P-O-L-C framework is a useful tool for implementing a well-planned strategy.
The P-O-L-C framework combines planning with the other big three: objectives, tactics and tools. This allows a firm to establish a number of strategic principles, as well as implement a few key strategies.
