​There are four main phases that must be applied with each strategy, and decision-makers must understand the purpose of each phase.

 

1. Formulating a Plan

Formulation is the process of choosing the most profitable course of action for success. This is the phase for setting objectives and identifying the ways and means of achieving them. An analysis of corporate strengths, weaknesses, opportunities and threats reveals critical areas surrounding the products and services that need attention.

 

2. Implementation of Strategies

Implementation is the execution of the necessary strategies to meet the objectives that have been set. To ensure success, all employees should understand their roles and responsibilities. Appropriate activity measures provide necessary feedback with facts that identify positive impacts and areas for change.

 

3. Evaluating the Strategy's Results

Evaluating strategies used in the implementation phase serve as performance feedback. Some companies use a gap analysis to compare how the company performed to set goals. Analyzing present state compared to desired future state identifies the need for new products or additions to existing products.

 

4. Modification and Amplification

The modification phase is essential in correcting any weaknesses or failures found during evaluation. Strengths identified can lead to implementation in other areas.