RF and JT are both former international rugby players who, when they retired, formed their own business, WFH Trading Company. The company that they established at first manufactured replica sports shirts and its own branded casual wear bearing their names and matchless logo. The main route to market at the outset was by the company's own mail order catalogue. As the business has developed it has diversified into a wide range of related products like as footwear, outdoor clothing and accessories.
To date, the growth of the business has tended to happen opportunistically rather than being a planned approach. As, in recent months it has become clear that the two partners, RF and JT, have quite unlike views on the future direction that WFH Trading Company should
Evaluate both the advantages and disadvantages of the formal/rational approach to strategy development for WFH Trading Company.
The formal/rational approach to strategy development assumes that strategies expand as a result of structured and systematic planning which follows a logical process. In this view strategies will be intended as a result of making deliberated choices based on underpinning analysis. The advantages of adopting the formal/rational approach to strategy development include:
- It would help the WFH Trading Company take a longer term sight of the development of the business avoiding a short term reactive approach.
- It should help encourage both RF and JT to consider the business environment which should inform plans and decisions, helping justify future strategic issues