Strategy Formulation is the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths & weakness. It includes defining the corporate mission, specifying achievable objectives, developing strategy & setting policy guidelines.
Mission is the purpose or reason for the organization’s existence. It tells what the company is providing to society, either a service like housekeeping or a product like automobiles.
Objectives are the end results of planned activity. They state what is to be accomplished by when and should be quantified, if possible. The achievement of corporate objectives should result in the fulfillment of a corporation’s mission.
Strategy is the complex plan for bringing the organization from a given posture to a desired position in a future period of time.
A policy is a broad guide line for decision-making that links the formulation of strategy with its implementation. Companies use policies to make sure that employees throughout the firm make decisions & take actions that support the corporation’s mission, objectives & strategy.