Strategy analysis is the process of reviewing external environment (PEST & Industry Analysis) and internal capabilities of an organisation to identify factors that are effecting organisation in achieving it’s future goals. This analysis will help organisation to identify its strengths, weaknesses, opportunities and threats.
Strategy formulation is the process by which an organisation chooses the most appropriate courses of actions (strategic objectives) to achieve its defined goals. Strategy formulation forces an organization to carefully look at the changing environment and to be prepared for the possible changes that may occur. A strategic formulation proses also enables an organization to evaluate its resources, allocate budgets, and determine the most effective plan for maximizing ROI (return on investment).