Difference Between Strategy Formulation and Strategy Implementation

Sometimes we don’t know what we missed to reach the target. The right strategy is important to achieve the destination. Moreover, strategy formulation is important, as the strategy implementation. Every successful people follow a strategy to reach their target.


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Strategy Formulation vs Strategy Implementation

The difference between strategy formulation and strategy implementation is their usage in life. Your planning and decision-making have come under strategy formulation. Your action to execute the plan has come under the strategy implementation. The force or focus before the execution is called strategy formulation. The force or focus during the execution is called strategy implementation.
You need a perfect strategy and better-implementing actions to reach your goals.

Strategy Formulation vs Strategy Implementation

In strategy formulation, you need to create a plan to implement your ideas. When the available language is used for document creation, then it is called strategy formulation. It is an actionable thing to reach your goals. Strategy formulation is nothing but allocation resources, planning, and your business goals. The one clear vision to achieve the goals is called strategy formulation. Tracking the performance is also a part of strategy formulation. Every single or small things matters in the strategic implementation.

Strategic implementation is nothing but the execution of your plans. The management of activities also comes under strategic implementation. The delivery of the strategic plans has several circumstances. The total activities from the starting point to the end of the product delivery are called strategic implementation. The organizational action towards reaching the goals of the company is also strategic implementation.

Comparison Table

Parameters of comparisonStrategy FormulationStrategy Implementation
DefinitionPlanning and decision-making is called strategic formulationExecution of actions is called strategic implementation
ForcePlacing the force before the execution is called strategic formulationPlacing the force during the execution is called strategic implementation.
ActivityThe strategic formulation is an entrepreneurial activityStrategic implementation is an administrative activity
Emphasize parameterThe effectiveness speaks in strategic formulationEfficiency speaks in strategy implementation
ProcessRational processOperational process

What is Strategy Formulation?

The process of creating plans and choosing the appropriate things is called strategy formulation. The long-term goal in strategy formulation is reaching your destination with your perfect plans. the formulation involves planning, decision making, resource allocation, doubt clearance, and time management discussions. Every single process and plan will be considered in reaching the goals. All the employees must aware of the plans and need to get clear thoughts about the goals.

The strategy formulation involves six steps. They are Setting Organizations’ objectives, Evaluating the Organizational Environment, Setting Quantitative Targets, Aiming in context with the divisional plans, Performance Analysis, and Choice of Strategy. Every step has a separate process and goals to achieve within the given time. These steps are in chronological order in order to maintain the correct order for better delivery of the output.

The strategy is the medium between the producer and the consumer. If the strategy works well, then it is a profit. The strategy depends on the problems and the situations. The strategy formulation also depends on the problems, employees’ ability, and time. It is vital to consider the factors which influence strategy formulation. The organizational strength, potential of the staff, and limitations are the major factors that need to consider in strategy formulation. The organization needs to maintain quantitative target goals for each employee.

What is Strategy Implementation?

The process of making the plans real and doing the actions is called strategy implementation. The strategic goals and objectives are a part of the strategy implementation. The development of the plan, utilization of resources, and maintenance of control systems are strategy implementation. There are many ways to follow the formulas and one must maintain their culture and honesty inside the organization. The competitive world will help to create better plans and implement better ideas in the field.

Developing tasks is not an easy task but implementing those tasks is quite difficult than developing. In the competitive world, customer satisfaction can make a good reputation for that particular organization. Your plans and executions must satisfy the customers or clients. The employees must be motivated to reach the goals by doing the actions. The values and attitudes of the organization will affect the reputations and output products. In 1978, the terms were first published in a book.

Strategy implementation involves the following process. They are Strategy encouraging policies, Using the resources wisely according to their availability, Constant improvement both qualitatively and quantitatively, rewards on reaching the weekend goals for employees, strategic leadership skills, sudden decision changing ability. Every step is needed to implement properly for a better output. Not all organizations have similar targets, but the way to reach them is similar for everyone.

Main Differences Between Strategy Formulation and Strategy Implementation

  1. The planning and organizing of the resources are coming under the strategy formulation, and the execution of those actions is coming under the strategy implementation.
  2. Coordination of a few people is enough for strategy formulation, but strategy implementation needs the cooperation of a large number of people.
  3. Strategy formulation is an initial process with logical skills, and strategy implementation is a next-level process with leadership skills.
  4. You need to put more effort before the actions for strategy formulation, and strategy implementation needs force during the process.
  5. Strategic formulation is an entrepreneurial activity, whereas strategy implementation is an administrative activity.
Difference Between Strategy Formulation and Strategy Implementation


  1. https://www.emerald.com/insight/content/doi/10.1108/00251749510100203/full/html
  2. https://www.researchgate.net/profile/Shahnawaz-Saqib/publication/284601403_The_Role_of_Leadership_in_Strategy_Formulation_and_Implementation/links/565563ef08aeafc2aabc49d2/The-Role-of-Leadership-in-Strategy-Formulation-and-Implementation.pdf
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