The place of organisational capabilities in strategy formulation and implementation: an exploratory analysis

Abstract

One of the most difficult things to do when venturing on a project or strategy, is how to start it. To implement a strategy is to change an organization or its processes of thinking, its processes of structure and its process of culture. Literature abound that one way or another has enunciated the benefits to be derived from maximizing organizational capability as a means of achieving competitive advantage. However, there is very little research done on the role capabilities play in the formulation and implementation of strategy. It is hereby pertinent to know that in order to implement a strategy, one needs to positively change and effectively feed his/her capabilities. The paper therefore seeks to explore extensively what capability and strategy are all about. It adopts the methodology of documentary analysis of relevant literature, making the research process exploratory and expository. The paper finds that there are nine stipulated steps in the process of formulating a strategy; the five essential capabilities and three levels of strategy were also noted. The need for organizational capability was emphatically emphasized, as well as, its place in strategy implementation. The paper therefore recommends amongst other things, that organization do periodic organizational capability audit in order to be always proactive enough to meet its goals and objectives and hence achieve competitive advantage.