Strategy Formulation, Evaluation and Implementation
Formulation is a choice, not a description
State mission and strategic intent, then choose between Porter's generic strategies (cost leadership, differentiation, focus) and test the choice against the value chain and the resource-based view. A core competence must deliver customer value, be hard for rivals to imitate and be extendable to new markets. Ansoff's matrix classifies growth as market penetration, product development, market development or diversification; BCG/GE screens rank business units for investment. In Pakistan, group and family ownership mean diversification decisions are often as much about control and succession as about economics.
Evaluation and implementation
Test every option for suitability (does it solve the strategic problem?), acceptability (return, risk, cash, stakeholder reaction) and feasibility (funding, skills, systems, regulation). Acceptability is quantitative: NPV at the risk-adjusted WACC, IRR, payback, sensitivity. Implementation follows McKinsey 7S and Kotter-style sequencing; a balanced scorecard converts the choice into measures.
Traps and a rule of thumb
Do not recommend growth without a funding plan - state the debt/equity/internal cash mix and the resulting gearing and covenants. Distinguish market development (new customers, existing product) from diversification (new product and new market). Rule of thumb: quote the margin of safety, not just the NPV. A project with an IRR of 13.5% against a WACC of 12% has only 1.5 points of headroom; one policy-rate increase erases it, so recommend staged investment or a price trigger.