You learned about the processes surrounding strategy development. Specifically, you saw the difference between intended and realized strategy, where intended strategy is essentially the desired strategy, and realized strategy is what is actually put in place. You also learned how strategy is ultimately made. In the end, the best strategies come about when managers are able to balance the needs for design (planning) with being flexible enough to capitalize on the benefits of emergence.
Strategy formulation is an essential component of planning; it forms the bridge that enables the organization to progress from vision and mission to goals and objectives. In terms of the P-O-L-C framework, strategy formulation is the P (planning) and strategy implementation is realized by O-L-C. Corporate strategy answers questions about which businesses to compete with; while business strategy answers questions about how any one of these businesses should do so. The best strategies are based on a thorough analysis of both internal and external factors—that is, a strategy that capitalizes on an organization’s strengths, weaknesses, opportunities, and threats.