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This article aims to explore strategic formulation in order to provide more understanding. Strategic formulation is a partial element of strategic management which includes three stages as follows: strategic formulation, strategic implementation and strategic evaluation. In this article, the author would like to focus only on the strategic formulation known as strategic planning stage that assists organizations to achieve their purposes and to shape their directions from the actual state they are to the target where they want to be in the future amidst fluctuating environment. In this article, principles, theories, and summary of strategic formulation will be presented and the author’s opinions and applications have been explained for those who are interested. Strategic formulation consists of four elements: analysis of strategic environment; development of mission and vision statements; establishment of long term objectives; and generation of strategic options and selection of particular strategies to implement.
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