Page 11 - BA1 Integrated Workbook STUDENT 2018

The process of strategy formulation

What is strategy?

Strategy is:

‘A course of action, including the specification of resources required, to
achieve a specific objective.’

CIMA Official Terminology

It involves setting the future plans of the organisation and requires a detailed
understanding of the organisation’s resources, environment and stakeholders.

Strategy can be undertaken at several levels within the organisation:

 corporate (strategic) – which businesses and markets should the business
operate in? For example – acquisitions and disposals, as well as entering or
leaving industries

 business (management) – how can each strategic business unit achieve
competitive advantage? For example – meeting the needs of customers and
gaining competitive advantage

 functional (operational) – practical, day to day strategies. For example – HR,
marketing and IT strategies.

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