‘Strategy is a course of action for achieving an organization’s purpose’. The process in which an accomplished Plan is formed is known as ‘strategy formation’.
The process of strategy formation encircles both action and formulation. The procedure for strategic reasoning Can be broken into four general kinds of actions:1. Identifying — Refers to all Actions leading to a better knowledge of what ought to be problematic.2. Diagnosing — (1) External evaluation; the action of exploring the dynamics and structure of the environment surrounding the company (2) an inner evaluation; the action of exploring the capacities and operation of the company.3. Conceiving — Refers to all Actions that lead to deciding on what course of action ought to be pursued.4.
Realizing — Refers To each of the technical activities performed by the company (bob de Wit, 2010).Siemens has been able to apply these actions through implementation her project which is called “Top Plus Program”. This project sought to improve business excellence by focusing on productivity, innovation and growth.
This project will be discussed in detail in the term “Strategic Change”.Getting people inside a company to exhibit strategic behavior requires the exchange of information and thoughts, decision-making processes, communication channels, the allocation of assets and the coordination of activities. Movements in the strategy formation process can change as jobs and duties are divided in different manners.
Usually, some actions will be divided amongst members of the best management group, although other activities will likely be pushed farther down to divisional managers, business unit managers, department supervisors, and at times even individuals. Supervisors are accountable for the understanding of strategic choices of interest to the key procedure of their organization. But many companies have staff members engaged in the strategy creation procedure (bob de Wit, 2010).The employees in Siemens engage with a company in the process of forming a strategy, which applies to each person in the company from managing board members to trainees. This process let the company benefit from all experiences to improve the performance of the company. There are more than 140.
000 employees in Siemens company who have shares in it, and for this reason, they are more responsible and more related to (Siemens AG, 2014).In coordinating the plan formation process, need to formalize the mission of actions to the various possible process participants ought to be. The extra plus of formalization is that it provides top management more control within the business, as all significant modifications must be a part of approved programs and the execution of programs is assessed (bob de Wit, 2010).