The Interplay of Internal and External Dynamics in Corporate Strategic Formulation

This research empirically investigates the salient organizational and environmental determinants shaping the strategic formulation process within the focal company. To systematically assess the interplay of internal and external forces, strategic planning activities were operationalized through matrix analysis, a recognized strategic management tool (Pearce & Robinson, 2018) [25]. The data collection process yielded a comprehensive dataset comprising 16 key external factors and 15 key internal factors deemed pertinent for subsequent analysis. These identified factors were systematically categorized and synthesized into Strengths, Weaknesses, Opportunities, and Threats (SWOT) elements, serving as the foundation for the development of the External Factor Evaluation (EFE) and Internal Factor Evaluation (IFE) matrices (David & David, 2017) [5]. Subsequently, an Internal-External (IE) matrix was employed as an integrative framework to consolidate the current strategic positions of the company's divisions, enabling a more holistic understanding of business strategy formulation at a comprehensive organizational level (Thompson et al., 2020) [37]. The findings of this analysis indicate that the company's strategic posture necessitates the adoption of intensive and aggressive growth strategies, leveraging identified strengths to capitalize on external opportunities and mitigate potential threats.