Strategy Formulation Process Research Articles

Framing strategy under high complexity: Processes and practices of ongoing reframing in the becoming of strategy

Framing is a key concept in research on how strategists legitimize and win support for strategic change by establishing a frame of reference for that change. This article advances research on strategy framing by showing how, under conditions of high complexity and uncertainty, strategists continuously reframe strategy in relation to shifting constellations of stakeholders. It presents the findings of an ethnographic study of strategizing in the highly complex context of the digital transformation journey of a global manufacturing firm. It shows how (re)framing practices are combined to iteratively shape strategy formation in ways that sustain strategic influence in the face of constant threats to legitimacy. By accounting for how (re)framing practices reach back and forth in time, the ethnographic findings refine the conventional understanding of how framing resources of past strategizing enter and reworked in present strategy work. Finally, the article contributes empirical insights into how information systems specialists, often marginalized as strategic actors, frame and pitch strategic projects to gain and exert influence in strategy formation processes.

AN INVESTIGATION ON THE STRATEGY FORMULATION METHODS USED DURING CORPORATE TRANSFORMATION

It has been stated that transformation is modern society's attempt to prevent extinction in the face of digital disruption. While it is critical for leaders to develop new strategies, business models, and organisational projects that embrace change, the true issue is directing their people through the transition from their present state to their intended future state. This necessitates constantly assessing progress and adjusting based on new information provided by emergent intelligence. During the strategy formulation process, the majority of these businesses rely heavily on their internal research and development teams or innovation departments as one of the primary sources of innovation. While small independent teams can generate impressive leads during the invention process, it is these organizations' ability to incorporate these leads into full products while incorporating other components that is truly impressive.

Comparing The Impact Of Family And Non-Family Firm Goals On Strategy, Family And Organisational Behaviour

The research has been conducted on family business that has grown significantly in the contemporary times. A comparative study has been conducted in this report or two to identify the impact of the process of decision-making strategy formulation and organisational behaviour between the family and non-family companies' goals. The study has been conducted by using the secondary data collection methodology. Thematic analysis has been performed to understand the patterns of information from the secondary resources. A non-probability sampling method has been followed to conduct the research. The result has highlighted that there are major differences in making strategic decisions, organisational behaviour, and family based on their goals. The major highlight is that family firm heterogeneity is one of the major issues that set up the mental process of the family members who participated in the business organisation to influence the entrepreneurial decision-making process which is not found in the case of non-family organisations. Leadership issue related to drawing personal benefits from the company overlooking the growth of firms is another issue in family centre companies. It has a serious impact on the stakeholder of organisations by overlapping the mental process and family culture on the strategic decision of the family centre company

Квінтесенція поняття «виробнича стратегія» в циркулярній економіці

The formation and effective implementation of a strategy have become a key integral driving force and a constituent of the competitive long-term functioning of modern enterprises – as the main adaptive tool of their activities with regard to dynamic and unpredictable changes in environmental conditions. Changes and substantiation of adaptation measures within a specific strategy necessitates the closer definition of the substantive content of the concept of «strategy», types of strategies, process, methods, approaches, methods, and principles of strategy formation and implementation. Since the basis for solving the allocated problems is a substantiated specification of the content of a specific type of enterprise development strategy, then, accordingly, the purpose of the article is to closer define the essence of the concept of «production strategy», taking into account the existing approaches of scholars to its substantive content and conditions of functioning, priorities and prospects for the development of modern enterprises. The choice of consideration of the production strategy is due to dynamic and critical changes in the external environment, requiring the application of cardinal measures to adapt the production potential of the enterprise in question to the needs and capabilities of society. To achieve the set goal, using the methods of analysis, synthesis and abstraction, the definition of the concept of «production strategy» proposed by various scholars is researched. Using the comparison method, similar and distinctive features of the above interpretations are allocated. The expediency and necessity of using the allocated features for the interpretation of the production strategy of modern enterprises are characterized and described. Based on the results of the research, the prerequisites and basic principles that cause influence on the production strategy of modern enterprises and, accordingly, determine the content of this concept are outlined. The concept of «production strategy» is closer defined in accordance with the peculiarities of the functioning of modern enterprises and tendencies in the development of the world economy.

Features of strategic management of foreign economic activities of agricultural enterprises

Introduction. The peculiarities of the functioning of the foreign economic activity of agricultural enterprises in the modern conditions of the transforming economy are manifested in various forms of ownership and the development of market relations in the Ukrainian economy, which are accompanied by increased competition, difficult conditions of economic activity, a decrease in the predictability of results, and an increase in the severity of economic consequences caused by management errors. Despite the fact that currently the issues of strategic management of agricultural enterprises are widely discussed, the study of issues of strategic management of foreign economic activity is carried out at a level insufficient for their use, and often simply intuitively. In connection with this, there is a need to develop the theory and methodology of forming a strategy for the development of the foreign economic activity of agrarian enterprises, aimed both at solving scientific problems of strategic management and at developing specific proposals for their implementation. The goal is research, development and justification of a set of measures of a theoretical and practical nature regarding the formation of a strategy for the development of the foreign economic activity of agrarian enterprises, as a set of interconnected management elements and connections that provide solutions to the problems faced by enterprises in foreign markets. Method (methodology). When conducting the research, taking into account the purpose and tasks, general scientific and specific research methods were used. Among them: the method of scientific abstraction - when systematizing the theoretical foundations of strategic management of foreign economic activity of agrarian enterprises; the method of system-structural analysis - in the development and construction of the system of the organizational-economic mechanism of management of foreign economic activity at the level of enterprises; deduction, logical generalization, comparative and system-structural analysis, grouping - when identifying existing problems of strategic management of foreign economic activity of agrarian enterprises. The results. The article substantiates the relevance of developing an organizational and economic mechanism for strategic management of foreign economic activities of agrarian enterprises in conditions of a high level of competition on international markets. It is emphasized the need to review traditional approaches to management with the construction of innovative mechanisms of management systems. It has been proven that the organizational and economic mechanism of managing foreign economic activity is a competitive advantage of the enterprise. A model of the organizational and economic mechanism of strategic management of foreign economic activity at the level of an agricultural enterprise has been developed. It was found that the most effective approach to the process of strategy formation in the organizational and economic mechanism, which is based on the concept of BSCol with adaptation to the activities of enterprises, is named as comprehensive. A transformed strategic map of a balanced system of indicators and indicators of foreign economic activity of agrarian enterprises has been developed.

A quantitative approach to risk-driven strategy formulation: A case study introducing a real-options framework

The thesis of this article advocates that a quantitative and analytical approach to the business value vs. risk relationship can effectively support company strategy formulation processes dealing with uncertain business scenarios. Within the grounded theory methodology, a suitable case study was selected among SMEs, and a real-options (RO) framework was applied to address the research question. This inductive-empirical methodology shows that the RO framework, in conjunction with the Montecarlo method, is a valuable tool capable of supporting the best strategy formulation by purposefully connecting risk with business value. Furthermore, it has been demonstrated that the RO framework can maximize business value in markets characterized by deep fundamental uncertainty. This article is of interest to both scholars and practitioners. Strategic thinking research can benefit from the conclusions of this paper by conceptually reinforcing strategy formulation theories based on organizational resource-investment choices exploited through the RO lens. Practitioners can verify the strengths of the RO framework in practice. Moreover, they can adopt the combined use of the RO framework and the Montecarlo method as a leading factor for strategy-setting processes and a trigger for shaping strategic risk management practices within their reference industry.

The impact of penalty and subsidy mechanisms on the decisions of the government, businesses, and consumers during COVID-19 ——Tripartite evolutionary game theory analysis

Purpose– Based on the fact that punishment and subsidy mechanisms affect the anti-epidemic incentives of major participants in a society, the issue of this paper is how the penalty and subsidy mechanisms affect the decisions of governments, businesses, and consumers during Corona Virus Disease 2019 (COVID-19). Design/Methodology/approach- This paper proposes a tripartite evolutionary game theory, involving governments, businesses, and consumers, to analyze the evolutionary stable strategies and the impact of penalty and subsidy mechanism on their strategy selection during COVID-19. We then uses numerical analysis to simulate the strategy formation process of governments, businesses, and consumers for the results of tripartite evolutionary game theory. Findings– This paper suggests that there are four evolutionary stable strategies corresponding to the actual anti-epidemic situations. We find that different subsidy and penalty mechanisms lead to different evolutionary stable strategies. High penalties for businesses and consumers can prompt them to choose active prevention strategies no matter what the subsidy mechanism is. For the government, the penalty mechanism is better than the subsidy mechanism, because the excessive subsidy mechanism will raise the government expenditure. The punishment mechanism is more effective than the subsidy mechanism in realizing the tripartite joint prevention of the COVID-19. Therefore, the implementation of strict punishment mechanism should be a major government measure under COVID-19. Originality/value- Our paper extends the existing theoretical work. We use political economy to make the preference hypothesis, and we explicitly state the effect of subsidy and penalty mechanisms on the decision making of participants and compare their applicability. This is the work that the existing literature did not complete before. Our findings can provide an important theoretical and decision-making basis for COVID-19 prevention and control.

Perumusan Strategi Bisnis pada PT. Integra Kreasitama Solusindo

ABSTRACTThis study aims to analyze the audit results of financial performance, ICT and Digital industries, formulate strategies at the company PT. Integra Kreasitama Solusindo and recommend the results of the strategy formulation process. The research method used is qualitative descriptive analysis with case studies of PT. Integra Kreasitama Solusindo is a company that has a business focus on ICT as a system integrator, technology solution, multimedia digital. The data sources used consist of primary data and secondary data. Financial performance analysis results in the last 3 (three) years for sales achievement with a consistent increase of 200%. Based on the results of the analysis of the ICT and Digital industry, PT. Integra Kreasitama Solusindo in competing in this industry is very high competition within similar companies. In formulating strategy at PT. Integra Kreasitama Solusindo in the calculation of the SWOT analysis shows that the company is in Quadrant I, meaning that it is advisable to carry out a strategy that supports an aggressive growth policy. Recommendations from the results of the strategy formulation of PT. Integra Kreasitama Solusindo from the results of the QSPM matrix, namely market penetration and market development. And the penetration strategy can be done by PT. Integra Kreasitama Solusindo with a focus on existing sites, market development to group/chain companies and expansion to potential cities, especially outside Java, and can provide discounts or product/service bundling and add more advertising or product/service packaging interesting.

Problems of Prioritization National Security interest of Energy import-dependent States (Case studies: Georgia and Lithuania)

This paper focuses on studying the prioritization process of national interests of energy import-dependent states. In particular, considering the energy strategy formation processes of Georgia and Lithuania, it explores the interrelation among the objectives of supply security and national security challenges. The reason behind the choice of the given countries was that energy security policies of both countries were formed based on identical characteristics after the collapse of the Soviet Union. Analysis of the mentioned cases offers a good opportunity to explain how foreign policy threats affect national energy security decisions. The study also examines the major factors affecting prioritization of national security interests, providing a possibility to answer the main research question of the paper - what prompts states to pursue less rational policies in terms of energy security, justified by maintaining state sovereignty? Using the securitization concept, the paper also explains what leads to taking steps aimed at solving national security challenges, which may, in turn, lead to the emergence of new types of security challenges. Analysis of the mentioned cases offers a good opportunity to explain how foreign policy threats affect national energy security decisions, whether such threats cause new energy challenges to be subject to political interests and whether it is appropriate for states to pursue such energy policy with the motive of maintaining state sovereignty. The paper indicates that energy policies purely formed based on political interests, may not face the main energy security challenges of the country.

Formulating a 100-year strategy for managing coastal hazard risk in a changing climate: Lessons learned from Hawke’s Bay, New Zealand

Decision-makers, managers and communities in low-lying coastal regions face many challenges in planning for and adapting to escalating coastal hazard risk, given uncertainty about sea-level rise and complex and contested environmental and socio-economic futures. Collaborative and participatory approaches can help to address such challenges and enable proactive adaptation. However, there is limited empirical evidence of such approaches yielding outcomes that can genuinely be described as shifting business as usual, and fewer still that have informed institutional change. This paper provides such evidence based on an assessment of a novel collaboration between local government, Māori, stakeholders, community members, consultants and researchers in the formulation of a 100-year coastal hazard management strategy in Aotearoa New Zealand. Thematic analysis of interviews, surveys and workshop materials was used to distil lessons learned by participants involved in formulating this anticipatory long-term strategy. Results indicated the importance of deliberative, flexible and transparent governance processes that can enable collaboration amongst Māori, local and region-wide stakeholders, in a process consistent with and supported by the national governmental frameworks, and regulatory and non-regulatory measures. The importance of aligning scientific, local and Indigenous knowledges is highlighted. Furthermore, novel tools and methodologies were used in the strategy formulation process, hitherto not applied in a real-life coastal decision-making process, to address changing risk over time and uncertainties. This enabled the tailoring of strategic planning and decision processes to reflect local contexts and governance interactions. Adaptive pathways were developed to enable short-term actions to be taken while leaving open long-term options and alternative pathways available for future adjustment as the hazards and impacts intensify. The lessons learned from the development of the coastal management strategy offer insights to support future collaborative decision-making processes in climate change adaptation. They advance scholarly understanding about how sea-level rise risks can be addressed in a long-term strategic formulation process in a dynamic and ‘fit-for-purpose’ manner.

How Does an Incumbent News Media Organization Become a Platform? Employing Intra-Firm Synergies to Launch the Platform Business Model in a News Agency

ABSTRACT Digital platforms have disrupted traditional news organizations, with new platform-based models gaining ground. However, the incumbents can defend their positions and reap the benefits of multi-sided market structures by establishing a platform business model themselves. We examine a case study of the Austrian News Agency (APA), which gradually formulated a strategy that resulted in a platform-based business model. Platform features were strategized and innovated over time and in phases, with the intent of creating value for customers on both sides of the platform. We found that APA’s platform transformation was enabled by a visionary value proposition backed by a trusted institution’s legitimacy and a co-operative organizational model that provided added incentives for the participating news media companies. The strategy and the business model emerged on the basis of external developments and internal realizations concerning the feasibility of the new platform strategy. Based on our results, we develop a framework for an incumbent strategy formation process towards a platform business model. This framework demonstrates the incumbent organization’s emergent, as well as deliberate, strategic ability to introduce platform features into its business model, based on unique intra-firm synergies with established parts of the business, and highlighting a potential for “incumbent advantage.”

Awareness of Sustainability and its Impact on Gaining Sustainable Competitive Advantage in the Sri Lankan Food Industry

Awareness of sustainability and compliance with the sustainability requirements in volatile business environments are important with the increasing concern of customers and legislations when considered about the current business arena. Being one of the most competitive yet the most pollutant contributing industries in Sri Lanka, gaining a sustainable competitive advantage with an accountable awareness of sustainability in the food industry remains questionable. This study aims to identify the impact of awareness of economic, environmental, and social sustainability on gaining sustainable competitive advantage for an organization. The study focuses on the top management of hotels, restaurants and fast - food chains in Western Province. The research sample includes 150 respondents which were extracted through stratified and convenience sampling techniques while mixed - method technique was adopted for data analysis. The first study follows the quantitative method in which data were collected by using a self-administered questionnaire, while qualitative data were collected via interviewing participants in the second study to validate the findings of the first study. The results revealed that awareness of environmental, economic and social sustainability create a significant impact in gaining sustainable competitive advantage. Particularly awareness of social sustainability highly impacts on gaining competitive advantage compared to the other two variables (R2 = 0.85). These findings were validated via qualitative analysis and findings revealed that having awareness about the three pillars of sustainability will have a significant impact on gaining sustainable competitive advantage. The researcher was able to contribute to the existing literature of relevant constructs and the study contributes as a strategic tool for policy makers in the sustainable strategy formulation process in order to gain sustainable competitive advantage by adopting the latest market trends within the industry. This exposed to number of future research areas on different influential factors relevant to gaining sustainable competitive advantage in addition to the elements discussed within the study.
 Keywords: Environmental sustainability, Social sustainability, Economic sustainability, Sustainable competitive advantage

Empirically Mapping the Evolutionary Phases of Tourism Area Life Cycle (TALC)

This paper aims to simulate the stages of the Tourism Area Life Cycle (TALC) in Goa, India, based on the number of tourist arrivals and tests whether the stages correspond with the stages of TALC as predicted in the theory. The graphs are plotted for total, foreign, and domestic tourists from 1962-2018. A compliance assessment of the indicators with the TALC stages is also done to ascertain the extent of development. The leading indicators of the exploration, stagnation, and decline stages are identified. The lagging indicator shows sluggish tourism planning initiatives. It is observed that the TALC differs for domestic and foreign tourists' arrivals. The study provides an important historical perspective on the pattern of growth of tourism in Goa. The pattern can further be employed as a basis to guide the process of strategy formulation.

The United States National Strategy Formulation Process

The United States national strategy formulation is a deliberate and thoughtful process, which has some challenges. It is very important to examine thefoundation and nature of the United States policy and strategy processes. The strategic policymakers must evaluate the concept of national securityin the context of modern international relations. This study brings some examples from the beginning of the Cold War to the present, and examinesthe U.S. policymakers’ decisions to use hard power – as an instrument of national power, which is the last option in the foreign policy. Whole-ofgovernmentis a concept related to grand strategy, which includes all instruments of national power. This study introduces the concept and potentialopportunities of whole-of-government collaboration. Finally, it introduces my recommendations for key decision makers and strategists at the nationallevel, and guidelines of strategy formulation for policymakers, who are involved in designing, developing, and executing national security policy andstrategy.Keywords: Grand strategy, hard power, national security policy, national security strategy, smart power, whole-of-government

ANALYTICAL TOOLS FOR CONSULTING COMPANY’S DEVELOPMENT STRATEGY FORMATION: SELECTION AND OPTIMIZATION

In this paper the different analytical methods of strategic management were summarized as one analytical stage of the whole strategy formation process. The best practice of managers which was described in different research was reviewed and developed in terms to get more quick and suitable management tools for small and medium sized consulting companies. SWOT-analysis was used to estimate basic quality factors, which influence on the company. EFAS, IFAS, SFAS methods were used and supplemented by adding the reference data for consulting companies. Visualization with using a bubble chart was proposed for EFAS, IFAS, SFAS results interpretation with the possibility of considering company’s dynamic changes. The stakeholders’ analysis was proposed to use as a part of analytical stage of development strategy formation process for consulting companies. This type of analysis was improved by using the 5-scored scale estimation as a risk-management tool. That would help to build a stakeholders’ map for further visualization. As a result, the level of strategy objectiveness will be increased, total spent time will be decreased and the strong analytical background for further strategy formation process will be achieved.

A Novel Multi-Criteria Risk Matrix to Assist in the Strategy Formulation Process: The Case of SMEs

Small and medium-sized enterprises (SMEs) are the spine of the European economy and play a key role in adding value in all sectors of the economy. However, due to a lack of methodology and time, SME entrepreneurs struggle to formalize their strategies and too often remain ill-prepared to face today’s potential crises. This paper aims to propose a Risk Management (RM) tool to identify and assess the impact of risks on specific business strategic dimensions. The hypotheses and robustness of the model are tested using Monte Carlo simulation. The analysis shows that a reduced strategic risk matrix (size [Formula: see text]) could provide the same quality of information as a full strategic risk matrix (size [Formula: see text]) in about 80% of the cases, regardless of the weight of each criterion and the values of each risk factor. The results extend the limited use of RM tool in the field of SME Risk Management.

Manajemen Strategi LAZISMU Jawa Barat dalam Mengelola Dana Zakat

This study aims to determine how strategic management in LAZISMU West Java, especially in managing zakat funds. This research is based on Riva'i's thought in Yunus that strategic management consists of three processes, namely: (1) strategy formulation, (2) strategy implementation, (3) evaluation. The method used in this research is descriptive method. Data collection techniques by observation and interviews. Based on these findings, it can be concluded that strategic management in LAZISMU West Java consists of three processes: First, the formulation of a strategy which includes the formulation of a vision and mission, environmental analysis, determining goals and objectives and ending with determining the strategy. Second, the implementation of strategies that include organizing, functional synergy that regulates program implementation, and program procedures for zakat fund management starting from the collection, distribution and utilization of productive zakat. Third, evaluation of strategies from the process of strategy formulation and implementation.

Open strategy: what is the impact of national culture?

PurposeThis paper aims to argue that national cultural context variables influence open strategy formation processes. This study suggests that country-specific differences may influence open strategy, a form of strategic decision-making and present propositions linking national culture dimensions, national trust orientation and open strategy.Design/methodology/approachThe conceptual framework links the literature on Hofstede’s cultural dimensions to the open strategy paradigm. This paper adopts a contingency approach linking national culture to open strategy.FindingsThe theoretical arguments demonstrate that uncertainty avoidance, time orientation, power distance, individualism versus collectivism and national trust culture all have a moderating influence on the antecedents and outcomes of open strategy. The findings extend the external validity of the open strategy paradigm and show that a culture-bound explanation of open strategy may be useful to the understanding of open strategy.Practical implicationsThe findings highlight the challenges and opportunities that managers face when they adopt open strategy processes in multinational settings and across different cultures. Managers need to be aware that national cultural variables affect how employees behave and how they are likely to act when faced with opportunities for inclusion, shared decision-making and transparency. The findings suggest that training employees ahead of time on the cultural effects of their behavior may aid the successful adoption of open strategy in different cultures.Originality/valueThis manuscript to our knowledge, maybe one of the first to make a direct link between openness and national cultural values. In the process, the conceptual framework extends research on the role of context on openness, as well as research at the nexus of cross-cultural issues and strategic decision-making.

ЦИФРОВА ТРАНСФОРМАЦІЯ АВТОДИЛЕРСЬКОГО БІЗНЕСУ В УМОВАХ КРИЗИ, ЗУМОВЛЕНОЇ COVID-19

The article is devoted to the study of the process of formation of the car retail strategy in the conditions of digital transformation and challenges caused by COVID-19. Object of study - digital transformation of car dealership business in conditions of COVID-19. Purpose - to investigate the process of car retail strategy formation in conditions of digital transformation and challenges caused by COVID-19. Methods of research - analysis, synthesis, generalization, systematization, graphic. The article examines how the change in consumer preferences, digitalization, and ACES trends (autonomous driving, connectivity, the electrification of vehicles, and shared mobility) cause the transformation of car retail. The current situation with COVID-19 is accelerating the introduction of digital car purchase models and the development of online sales channels. The essence of modern trends of the car retail market and their consequences for car manufacturers, dealers, and clients have been analyzed. Five archetypes of future retail strategies in the automotive market have been identified, with their characteristics, prerequisites, and implications for automakers, dealers, and customers. The state and prospects of the automotive market of Ukraine have been investigated. It was concluded that the role of official dealerships in vehicle trade, maintenance, and repair will gradually decrease. A number of measures were proposed to ensure the survival of dealerships in Ukraine. KEY WORDS: DIGITAL TRANSFORMATION, DIGITALIZATION. CAR DEALERSHIP BUSINESS, RETAIL STRATEGY, BUSINESS MODEL, COVID-19.

Achievable Energy Flexibility Forecasting of Buildings Equipped With Integrated Energy Management System

Buildings’ achievable energy flexibility refers to the real load reduction amount in an incentive-based demand response (DR) event, which presents dynamic, subjective, and uncertain characteristics. It is different from the buildings’ theoretical energy flexibility, which refers to its physical load reduction potential during a certain time period and is static and certain. The former serves as a foundation in a DR aggregator’s market transaction strategy formulation process and thereby calls on the necessity of its accurate forecasting. However, most of the existing literature focuses on the latter one, which is not necessarily equal to the real achievable flexibility. Therefore, to help DR aggregators bid accurately in the ancillary service market, this paper proposes an achievable energy flexibility forecasting method for a building equipped with an integrated energy management system based on the decision tree model. The impact of gas-fired equipment on buildings’ achievable-energy-flexibility is also taken into account in the proposed method. The case study indicates that the proposed method exhibits promising performance in forecasting the achievable energy flexibility of a building.