Page 11 - E2 Integrated Workbook STUDENT 2018
P. 11
Strategy and the rational/formal approach
The rational/formal approach to
strategy development
The rational/formal approach to strategy development is also referred to as the
traditional or top-down approach. The model is based on rational behaviour,
whereby planners, management and organisations are expected to behave logically.
First defining the mission and objectives of the organisation and then selecting the
means to achieve these.
The model below shows a framework of the rational/formal approach including the
various steps which management take to develop a strategy for their organisation.
Stakeholder Mission
analysis
Objectives
Internal External
analysis Corporate appraisal analysis
Strategy options
Evaluation and choice
Implementation
Review and control
Each aspect of the model will be looked at in more detail in the next few chapters.
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