What does the AFI strategy framework link together to help firms develop strategies?

The AFI strategy framework consists of three interconnected components: Analyze, Formulate, and Implement. This framework is essential for strategic management as it provides a structured approach for firms to develop effective strategies.

The "Analyze" stage involves conducting a thorough assessment of the internal and external environments in which the firm operates. This includes analyzing market trends, competitors, and internal capabilities, which helps to identify opportunities and threats. A deep understanding of these factors is crucial for informed decision-making.

In the "Formulate" stage, firms develop strategies based on the insights gained during the analysis. This involves creating strategic plans that align the firm’s resources and capabilities with its goals and the external environment. Effective formulation considers the organization's strengths and weaknesses to leverage competitive advantages.

Finally, the "Implement" phase is where the formulated strategies are put into action. This can involve allocating resources, aligning organizational structures, and communicating the strategy throughout the organization to ensure that all employees understand their roles in achieving the strategic goals.

This framework emphasizes the importance of a comprehensive approach to strategy development, where each stage builds on the previous one, ultimately leading to more coherent and actionable strategies.