Strategy Formulation and Situation Analysis

StrategyFormulation and Situation Analysis


Situationanalysis is regarded as the process of gathering methods thatmanagers uses to analyze any internal as well as the externalsurrounding of an organization to allow for better understanding ofthe clients, capacities, as well as the operation environment of theorganization. It`s divided into three categories external,directional analysis and internal analysis. Any company should beable to analyze internal factors such as workers, products produced,and payment of the workers. External factors such as price and demandof the customers enable the company to identify the problem it isfacing. The methods that are applied in situation analysis includeSWOT analysis, the Porter five forces as well as the 5Cs analysis(Henemam, Judge, &amp Kammeyer, 2012).

Strategyformulation is the process by which an organization chooses the mostappropriate course of action to achieve its defined goals. Strategyformulation is very important in every organization since it providesa framework for the actions that will lead to the anticipatedresults. Strategy formulation and situation analysis areinterrelated. For any organization to realize progress, the two keyplanning should be implemented. Since strategy analysis points outthe organization’s weak point hence creating room for themanagerial to formulate and change some few things (Henemam, Judge &ampKammeyer, 2012). Maybe something the organization should do but theyhave not been done, or they have been doing but over period are notsuccessful. Such analysis provides the best solution for theorganization to check their strategy. When the analysis is over, theorganization then can come up with a formulation that they canimplement to test if they can work effectively.

Inconclusion, both when implanted in any organization, the productivityincrease. Organization mission, vision, and objectives will beaccomplished despite it takes the time to have effectively cooperatedwith the system.


Henemam,H., Judge, T., &amp Kammeyer-Mueller, J. (2012). Staffingorganizations.Middleton, WI: Mendota House.