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 initially manufactured replica sports shirts and its own branded casual wear bearing their names and unique logo. The major 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 such as footwear, outdoor clothing and accessories.
To date, the growth of the business has tended to happen opportunistically rather than being a planned approach. Though, in recent months it has become clear that the two partners, RF and JT, have quite dissimilar views on the future direction that WFH Trading Company should
Describe, with reference to WFH Trading Company, the main stages involved in the formal/rational approach to strategy development.
The formal or rational approach to strategic planning can be explained as a series of interrelated stages. The first stage in the process would involve WFH Trading Company decisive its mission, which essentially sets out a broad statement of the purpose of the company.
The next stage would be the setting of specific goals and objectives for the company which translates the mission into planned milestones for the business strategy to reach. The strategy of WFH Trading Company must achieve a 'good fit' with its environment, as the next stage in the process involves undertaking analysis to understand the company's strategic position. This part of the process will engage undertaking a position audit to assess the internal resources and capabilities of the company. The internal position could also be analysed by undertaking a resources audit. The value chain framework could also be used in order to measure how the activities performed by WFH Trading Company add value.