Strategy Formulation Process Analysis

Question 2
A
The formulation of strategy is usually perceived to be "the process of choosing the most suitable way of action that an organization takes in order to realize its organizational goals and objectives, which leads, in turn, to the achievement of its organizational vision. In its traditional and most acceptable form, the process through which strategy is formulated encompasses six stages. They go as follows:
1) Setting Organizations’ objectives
This stage includes the essential component the strategy statement. It is the setting of the company 's long-term objectives. The selection of the goals to be achieved through the strategy is a key issue in this stage. The process needs to be analyzed before the selection of objectives. In

This needs a comparison between the company 's past performances with the present. Moreover, the desired future performance rates are to be compared as well. This is important as it identifies the degree of gap that persists between the actual reality and the long-term expectation of the company.
6) Choice of Strategy
Following the step of evaluating the alternatives, the strategy formulation process comes to an end. Now, the best set of actions is to be chosen. This is done in the light of the organizational goals, organizational strengths, potentials and limitations and the availability of external opportunities in the company 's environment.
B
According to Prahalad and Hamel, there are three tests that can be applied as means of identifying core competences in a corporate. These three tests are the following:
1- The provision of potential access to a wide range of markets. So, a corporate that has a core competence is able to produce products, or provide services, that cover a wide variation of options and meet a set of customer needs. Samsung is a good example of this. The company produces a wide range of electronic devices, ranging from mobile phones to huge display