Strategy formulation refers to the creation of a comprehensive program to define and meet an organization's goals. Planning often deals with the practicalities of setting goals, choosing tactics, and setting schedules. Conversely, the strategy tends to be broader in scope. By definition, it is a broad concept that describes the intentions of an organization.

In addition, a strategy describes how the company intends to meet its goals and includes the organization's responsiveness to new challenges and new needs. Because a well$-$formulated strategy is so vital to a company's success, most senior managers devote substantial attention and creativity to this process.

Strategy formulation, according to the authors, involves three basic steps, what are the three basic steps proposed by the authors?