Page 31 - Introduction to strategic management

6- Strategy Formulation vs. Strategy

Implementation

The key differences between Strategy Formulation and
Strategy Implementation are as follows:

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning Strategy Implementation involves all
and decision-making involved in those means related to executing the

developing organization’s strategic strategic plans.
goals and plans.
Strategy Formulation is placing the Strategy Implementation is managing

forces before the action. forces during the action.
Strategy Formulation is Strategic Implementation is mainly

an ‘Entrepreneurial Activity’ based on an ‘Administrative Task’ based on
strategic decision-making. strategic and operational decisions.
Strategy Formulation emphasizes Strategy Implementation emphasizes

on ‘effectiveness’. on ‘efficiency’.
Strategy Formulation is a ‘rational Strategy Implementation is basically
process’. an ‘operational process’.

Strategy Formulation requires co- Strategy Implementation requires co-
ordination among few individuals. ordination among many individuals.
Strategy Formulation requires a great Strategy Implementation requires

deal of ‘initiative and logical skills’. specific ‘motivational and leadership
traits’.
Strategic Formulation precedes Strategy Implementation follows

Strategy Implementation. Strategy Formulation.

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