External environmental analysis is an important part of the process of developing value-adding support strategies. External environmental analysis helps to identify opportunities and threats in the external environment which can be incorporated into strategy formulation. Strategy formulation addresses how best to take advantage of these opportunities and mitigate any potential risks from threats posed by the external environment.
1. What part does external environmental analysis play in the development of value-adding support strategies? What part does strategy formulation play?
Strategy formulation involves creating plans for reaching specific objectives set forth by top management or senior leadership within an organization. It requires decision makers to consider various factors such as competitive advantages, industry trends, resources available to them, technological advances etc., all while accounting for any potential pitfalls identified through external environmental analysis discussed earlier (Encyclopedia Britannica). A well thought out plan should clearly communicate what direction an organization wishes to go strategically so that employees understand their roles within this plan going forward; this may also involve changing processes or policies if need be in order for new strategies put into place become successful over time (Encyclopedia Britannica). Ultimately this step helps create ownership amongst different teams working together towards achieving common goals which ultimately help drive value back up through bottom line profits&profits growth over time!
In conclusion then we can observe that while both internal &external environment play vital role helping strategize value adding initiatives it\’s still important analyze & formulate strategies accordingly manage any possible risks present due lack proper implementation plans&poor execution efforts! By using right combination tools like SWOT Analysis alongside other methods mentioned earlier one can effectively evaluate most suitable course action better ensure success each venture embarked upon!
Citation: Encyclopedia Britannica “Strategy Formulation” Retrieved From https://www.britannica.com/topic/strategy-formulation