Strategy Formulation: Evaluating Efficiency and Effectiveness
For any business to continued growing over time it must balance the strategic formulation of its business model with the implementation of strategies (Buttner, 2006). There is however, an inherent conflict between strategic formulation on the one hand, or effectiveness, and the implementation of strategies, or efficiency, on the other. As markets change and economic conditions vary by country and region, strategy formulation and implementation are forced to flex or change over time to keep serving customers and generating revenue. The intent of this analysis is to explain how strategic effectiveness becomes more critical the greater the uncertainty there is in a given industry or geographic market. The effectiveness of a business must also be based on a solid foundation of agility and market focus (Dandira, 2011). Efficiency must be increasing in speed and accuracy of execution in highly competitive markets, yet must be guided by purposes and focus that effectiveness delivers (Mouzas, 2006).
Comparing Strategy Formulation and Implementation
An example of strategy formulation, or effectiveness, is in how Apple continues to innovate by creating the digital tablet market with the iPad. The effectiveness of launching a digital tablet PC robust enough in features to gain the attention and interest of customers eventually led to over 1 million being sold in the first thirty days...
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