When formulating strategies, there are 5 categories of strategy formulation available to utilize: directional strategies, adaptive, market entry, competitive, and implementation strategies. To be effective, the strategies must be formulated in a specific order.
Why is it so important to formulate strategies in this specific order?
- Provide an example of each category of strategy formulation for discussion.
- Is one type of strategy formulation more effective than another for an acute care hospital? Why or why not?
A directional strategy is a plan used for an organization that wishes to achieve its objectives, by considering opportunities for growth and increased profit margin. The directional approach helps the organization focus on what its main objectives are and to stay focused on its mission. However, for the organization to stay moving in the desired direction, all members must understand what they can do to support the objectives and mission (Vogt, 2014). An example of directional strategy is Apple's decision to introduce the iPhone. The company could
grow by introducing new computer models and computers with more features, to increase the level of consumer purchase. But, it has chosen its growth strategy of expanding its product offerings through new technology instead.
Adaptive strategy is a plan a firm develops, to determine how it will respond to changes within the industry it competes or within the markets it competes. An adaptive strategy may involve adopting new technologies, such as social media, to achieve a goal, such as increased awareness and promotions. Another adaptive strategy may be to adjust pricing, so that the product or service is more desirable to consumers and makes it easier for customers to ...
This discussion provides examples of 5 basic business strategies and when each is most appropriate. It also explains which strategy is best utilized by an acute care hospital and why.