Discussion Post: Strategy Formulation

Prompt 1
The five guiding principles of strategy formulation are analyzing the external
environment to identify threats and opportunities; analyzing the organization’s internal
environment, notably resources, capabilities, and practices; considering strategies for
addressing the threats and exploiting the opportunities; aligning strategy-supporting
activities; and ensuring that every member of the organization is aligned to the strategy
(Harvard Management Update, 2008; Cote, 2020; Collins & Porras, 1996). Having identified
threats and opportunities, measures must be implemented to address and exploit them,
respectively. Internal resources, capabilities, and practices can constrain a company’s chosen
strategy. Meanwhile, the company must ensure that all the activities proposed to implement
the strategy mutually support each other; they must not contradict each other. Finally,
through effective communication and the coordination of work processes, all employees at all
levels must be made to understand the strategy and their role in making it succeed.
Prompt 2
An organization’s mission, vision, aspirations, and values work to guide an
organization’s strategies by forming the basis of the strategies (Ouma & Mosoti, 2018). For
example, a construction company whose mission is to help low-income households have their
own houses would need to have in place and implement strategies for delivering affordable
housing. This is because the existing methods and technologies for the delivery of housing
may be such that they result in costly houses that are beyond the reach of low-income
households. Likewise, a cosmetics company whose vision is to be the leading supplier of
natural cosmetic products must put in place strategies for sourcing the best natural ingredients
for their products. Finally, a company with one of its values as putting the customer first may

need to implement strategies that will ensure the highest levels of customer service. These
may include, among others, training all employees in customer care.
Prompt 3
The National Collegiate Athletic Association (NCAA) is a not-for-profit organization
that regulates student-athletes from over 1,200 North American colleges and universities. The
NCAA’s mission is “to govern competition in a fair, safe, equitable, and sportsmanlike
manner, and to integrate intercollegiate athletics into higher education so that the educational
experience of the student-athlete is paramount (NCAA, 2004).” It has a seven-point vision
statement, including a future where intercollegiate sports will be appreciated as a valued
enhancement to a wholesome higher education experience. Its values include, among others,
respect, the pursuit of excellence in both academics and sports, and presidential leadership of
intercollegiate sports at all levels.
Guided by its mission, vision, and values, in January 2003, the NCAA embarked on
preparing a long-range, thirty-year strategic plan. The strategic plan was informed and
necessitated by the increasing complexity of intercollegiate sports. It was felt important that
the organization maintains its historical values even as it continued to evolve in response to
its increasingly complex environment. Hence, the need for the plan.
In the plan, the NCAA launched several activities and programs that aligned with and
furthered its mission, vision, and values. For example, in the short term (three to five years of
the plan) and in line with its vision, the organization proposed a program to promote sports as
an integral part of the higher education experience. Also, in line with its value of balanced
student life, the organization launched a program to enrich the student-athlete experience.

References

Collins, J., & Porras, J. (1996). Building Your Company’s Vision. Harvard Business Review,
Unpaginated.
Cote, C. (2020, October 14). 5 tips for formulating a successful strategy. Retrieved from
Harvard Business School Online.
Harvard Management Update. (2008). The Building Blocks of Strategy. Harvard Business
Review, Unpaginated.
NCAA. (2004). NCAA Strategic Plan. Indianapolis: NCAA.
Ouma, C., & Mosoti, Z. (2018). The effect of mission and vision on organizational
performance within private universities in Kenya. European Journal of Educational
Sciences, 15-33.