Strategy Formulation in the Context of Smes: Relevant or Irrelevant?
Strategy Formulation in the context of SMEs: relevant or irrelevant?
ABSTRACT
A study was made to determine whether SME’s in the northern region of Peninsular Malaysia applies the strategic management concept as described by the Wheelen and Hunger model. Specifically, this study was intended to determine whether SMEs do strategic planning and what methods were used.
Findings indicated that most SMEs were found to have strategic planning process in-place. Further study shows that these SMEs also formulate visions, missions, objectives, policies, budget and procedures during the course of their strategy planning processes. It is also interesting to note that there are little variations between the theoretical concepts as described by Wheelen and Hunger and in actual practise. The model is very relevant for companies in order to be successful and gain competitive advantage.
ABSTRAK
INTRODUCTION
Do SMEs in the Northern states strategise?
Do they use the Wheelan and Hunger Model? If not, what other models do they use?
Findings indicated 54% of SMEs in the Northern Region used the W&H Model. DEFINITION AND RELEVANCE OF STRATEGY FORMULATION
Strategy formulation is a knowledge creation process which involves not only individual knowledge but organisational knowledge as well (Ilmola and Mustonen, 2003). Wheelan and Hunger (2012) referred to strategic planning and long range planning as synonyms to strategic formulation and consists of sequential activities of developing a corporate’s mission, objectives, strategies and policies. Strategy formulation is one of the vital elements of Strategic Management. Understanding the industry each organisation belongs to is a major pre-requisite of strategic formulation process. Leitner (1998) discussed that firm’s resources and competencies should determine the paradigm of strategic formulation.
The importance of strategic formulation for any organisation has been widely researched by linking strategic activities
ABSTRACT
A study was made to determine whether SME’s in the northern region of Peninsular Malaysia applies the strategic management concept as described by the Wheelen and Hunger model. Specifically, this study was intended to determine whether SMEs do strategic planning and what methods were used.
Findings indicated that most SMEs were found to have strategic planning process in-place. Further study shows that these SMEs also formulate visions, missions, objectives, policies, budget and procedures during the course of their strategy planning processes. It is also interesting to note that there are little variations between the theoretical concepts as described by Wheelen and Hunger and in actual practise. The model is very relevant for companies in order to be successful and gain competitive advantage.
ABSTRAK
INTRODUCTION
Do SMEs in the Northern states strategise?
Do they use the Wheelan and Hunger Model? If not, what other models do they use?
Findings indicated 54% of SMEs in the Northern Region used the W&H Model. DEFINITION AND RELEVANCE OF STRATEGY FORMULATION
Strategy formulation is a knowledge creation process which involves not only individual knowledge but organisational knowledge as well (Ilmola and Mustonen, 2003). Wheelan and Hunger (2012) referred to strategic planning and long range planning as synonyms to strategic formulation and consists of sequential activities of developing a corporate’s mission, objectives, strategies and policies. Strategy formulation is one of the vital elements of Strategic Management. Understanding the industry each organisation belongs to is a major pre-requisite of strategic formulation process. Leitner (1998) discussed that firm’s resources and competencies should determine the paradigm of strategic formulation.
The importance of strategic formulation for any organisation has been widely researched by linking strategic activities