Strategic Management
Cutting Costs Strategically
February 12, 2025
Following are the main differences between Strategy Formulation and Strategy Implementation-
| Strategy Formulation | Strategy Implementation |
| Strategy Formulation includes planning and decision-making involved in developing organization’s strategic goals and plans. | Strategy Implementation involves all those means related to executing the strategic plans. |
| In short, Strategy Formulation is placing the Forces before the action. | In short, Strategy Implementation is managing forces during the action. |
| Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making. | Strategic Implementation is mainly an Administrative Task based on strategic and operational decisions. |
| Strategy Formulation emphasizes on effectiveness. | Strategy Implementation emphasizes on efficiency. |
| Strategy Formulation is a rational process. | Strategy Implementation is basically an operational process. |
| Strategy Formulation requires co-ordination among few individuals. | Strategy Implementation requires co-ordination among many individuals. |
| Strategy Formulation requires a great deal of initiative and logical skills. | Strategy Implementation requires specific motivational and leadership traits. |
| Strategic Formulation precedes Strategy Implementation. | STrategy Implementation follows Strategy Formulation. |