AFI Strategy Framework
AFI Strategy Framework is a model that links three interdependent strategic management tasks that together help firms conceive of and implement a strategy that can improve performance and result in competitive advantage. The following are the 3 Tasks of the AFI Strategy Framework
- Analyze: The strategic Management Process, External Analysis, Internal Analysis, and Firm Performance.
- Formulate: Business Strategy, Corporate Strategy, and Global Strategy.
- Implement: Organization Design, Corporate Governance, Business Ethics, and Strategic Leadership.
Diagrammatic Illustration of AFI Strategy Framework
source: Joe Mahoney
Practical Application of AFI Strategy Framework
In strategic management, one often takes the perspective of the CEO or person responsible for the strategy of the organization. One would normally use an inductive approach to the analysis. The following is a helpful overview of the AFI Strategy — analysis, formulation and implementation and it's the practical application.
- Perform an external environmental analysis of the:
- Perform an internal analysis of the firm using RBV/RBT:
- Analyze competitive advantage and firm performance:
- Use financial and market-based measures
- Comparison of firm to competitors, peers, industry average
- Assessment of achieving and sustaining competitive advantage
- Formulation: Provide analysis of firm’s business-level strategy and corporate-level strategy:
- Implementation: Explain how to put strategy into action and align strategy/ structure relationship: