Strategy Formulation Essay Example | Topics and Well Written Essays - 500 words

Strategy Formulation - Essay Example In this respect effective use of communication techniques within and without the organization is emphasized by strategic management experts in order to achieve these long term objectives. Communication within the organization is necessarily influenced by its leadership style and organizational culture and structure. A vertical top-down structure with an autocratic leadership style is less likely to facilitate efficient communication between different layers of the hierarchy while conversely a horizontal structure with a democratic leadership style would more likely facilitate good communication flow between departments. Strategic long term goals such as market share, profitability, an increase in the share price, quality improvements, customer satisfaction and brand loyalty have to be achieved by adopting such strategies as good internal and external communication practices, employee relations, good motivation strategies and HRM practices, sound financial management including positive cash flows and better overall performance metrics. For example there are good and bad business practices being adopted by companies in the process of planning and design of management and business strategy. Many organizations depend on the available information to make such decisions. This is strategically a bad business practice because information asymmetry often misleads managers and their subsequent decisions based on such imbalanced information could be wrong. Nowadays organizations have better approaches to such intricate problems. In the planning and design process of VRIO (value, rarity, inimitability and organization) framework businesses have adopted such revolutionary approaches. For instance Accenture, the largest strategic management consultancy in the world, places emphasis on VRIO framework in such a manner that it’s very difficult for its competitors to duplicate its VRIO environment in any meaningful manner. This example illustrates