Analysis of Relations among Variables Affecting Strategy Formulation in the State Sector

Abstract

The present paper briefly introduces theoretical fundamentals of strategy formulation in organizations. It points out that realization of three stages of strategic management cycle is an effective factor for the success of strategy formulation. Using this approach, it identifies a comprehensive process for the strategy implementation in the state sector. It also uses a field study to explain the model used for the implementation of national strategies in the Executive Branch of the Islamic Republic of Iran, regarding it as a requisite stage in the realization of strategic management cycle. In terms of goals, the present study is an applied, developmental study, while in terms of methodology; it uses a descriptive method to explain subject matters of the study through survey. Then, it expounds relations among variables of the proposed model using co-variance correlation matrix analysis. General structure of the research model is based on the model of structural equations using score card simulation model in the state sector. Findings show that implementation of national strategies in the Executive Branch should take place in two stages. The first stage is preparation by the government, while the second stage deals with operations of executive bodies, which requires appropriate adjustments in the structure, human resources, internal processes, distribution of financial resources for implementation of the adopted strategies. In addition, the proposed model allows for analysis of relations among its variables, prediction of the effect of each variable, as well as for determination of the quality of their relation to national development variable.

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