The process of strategy formulation by major Lebanese firms in the furniture industry. (c1994)

Abstract

Strategy has always been used as a systematic process to understand the future implications of present decisions. Herbiniak and Joyce (1984) define strategy as a decision process concerned with developing long-term objectives and aligning organizational capabilities and environmental contingencies so as to obtain them. Without sound strategic formulation plan, an organization will have to rely on continuing good luck to maintain adequate performance. Thus, the main purpose of this research is to determine whether the key issues in formulating a competitive strategy are applied in the Lebanese furniture industry. In addition, the current research aims at identifying the role of management in coping with the organizational changes in the current environmental developments. Based on the results of the studied major furniture firms in Lebanon, it is concluded that the process of strategy formulation is still very limited in practice. Many managers relate this limitation to the economic conditions and to the fluctuating market in Lebanon. This market is like a thin tube where any tiny drop of water affects the level of water in the tube; whereas; other markets are like wide tubes which are not directly affected by small changes. Finally, by analyzing in depth the current states of major furniture firms in the Lebanese industry, it is recommended that every firm should establish an independent specialized marketing department which works on analyzing the current and future trends in the market. These firms must be equipped with the qualified top managers who have long term prospects and who encourage innovation and involvement on the part of their managers and employees.