Blackwell Reference Online

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The process of manufacturing strategy formulation is concerned with the way in which organizations determine the objectives of their manufacturing function, the manufacturing resources that are required, and the methods of coordination and control of those resources. It is one of the key tasks for operations managers, yet the process is extremely complex. There are many approaches to strategy formulation, but most find their roots in the rational view of the strategy formulation process developed in the 1960s and 1970s by, among others, Ansoff (1965) and Andrews (1971) . The approach is essentially prescriptive, analytical, and rational. It specifies how strategies should be consciously formulated. Hofer and Schendel's seven‐stage model ( Hofer and Schendel, 1978 ) succinctly summarized this, laying out in overview the steps that organizations need to undergo. The first three steps were essentially auditing the current situation: step 1 was the identification of current strategy; step 2 was an identification of opportunities and threats; step 3 was an assessment of the principal skills and resources available. The next step was the pivotal step, a “gap analysis,” which involved the comparison of the organization's objectives, strategy, and resources against the environmental opportunities and threats to determine the extent of change required in the current strategy. Step 5 was ... log in or subscribe to read full text