Question

what is it appropriate to argue that good strategy-making combined with good strategy execution are valid signs of good management? describe an example.

Answer 1

Startegy formulation/making and Strategy execution are consecutive phases in Strategy management.

i. To ensure a firm has effective management in place, it needs to formulate good strategies as below -

Based on the goal setting and analyzing internal and external environment, the firm should identify the right course of action after an analysis of all possible options. It should also identify the costs and benefits of the strategy along with the risks to be mitigated.

Example of good strategic formulation -

To increase the revenue of a firm by 30%, the firm strategized to offer discount on products to boost the sales.

ii. Once the right strategy is formulated, it is important to execute the strategy as per the action plan as below -

Strategy execution is the phase when the strategy is implemented taking into consideration the activities to be accomplished, time schedule, resources to be utilized, scope creep etc.

Example of good strategic formulation -

To execute the promotional offer, the firm needs to print the new discount details on the packages, ensure effetcive marketing and advertising to publicize the offer among consumers etc.

Hence, a combination of good Startegy formulation and Strategy execution is critical for success of a company.