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Strategic Management Hitesh Jhanji, Lovely Professional University

Notes Unit 2: Strategy Formulation and Defining Vision

CONTENTS
Objectives

Introduction
2.1 Aspects of Strategy Formulation

2.2 Business Vision
2.2.1 Defining Vision

2.2.2 Nature of Vision
2.2.3 Characteristics of Vision Statements

2.2.4 Importance of Vision
2.2.5 Advantages of Vision

2.2.6 Formulating a Vision Statement
2.3 Summary

2.4 Keywords
2.5 Self Assessment

2.6 Review Questions
2.7 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss various aspects of strategy formulation

Explain the relevance business vision

Introduction

Strategy formulation is the process of determining appropriate courses of action for achieving
organisational objectives and thereby accomplishing organisational purpose.

Strategy formulation is vital to the well-being of a company or organisation. It produces a clear
set of recommendations, with supporting justification, that revise as necessary the mission and
objectives of the organisation, and supply the strategies for accomplishing them. In formulation,
we are trying to modify the current objectives and strategies in ways to make the organisation
more successful. This includes trying to create "sustainable" competitive advantages – although
most competitive advantages are eroded steadily by the efforts of competitors.

16 LOVELY PROFESSIONAL UNIVERSITY