In business, strategies are primarily about identifying and analyzing the competition, as well as developing a strategy to equal or exceed the potential of the competitors’ products or services. Strategy refers to the long-term direction and scope of an organization and it contributes to the achievement of an organization’s competitive advantage. Strategy formulation refers to the process of determining the most suitable course of action for the achievement of organizational goals and objectives and, as a result, the achievement of the organizational vision. The establishment of long-term goals for an organization is the most important component of any strategy statement. It is well established that strategy is often used as a medium for an organization to achieve its corporate goals. The objectives of an organization emphasize the condition of being there, while strategy emphasizes the process of getting there. Strategy encompasses both the determination of goals and the selection of the media to be used to achieve those objectives. As a result, strategy is a more general phrase that refers to the method in which resources are used to attain particular goals. In strategy formulation, it is important to consider the elements that impact the selection of objectives when determining organizational goals before the selection of organizational objectives. Once the goals and elements impacting strategic choices have been established, it becomes very simple to make strategic judgments.
