The process of crafting a strategy is a systematic sequence of activities that begins with an analysis of the external environment. It is essential to understand the interaction of the external and internal environments and their influence on the firm and how they impact the choice of strategy.

This includes the process of forming a vision after analyzing the external and internal environments. Some strategists suggest a holistic vision comes prior to analysis, with others suggesting analysis drives the vision. Irrespective of this lack of consensus, developing vision and values, designing and executing strategy are determined by the extent and power of forces in the external environment and the internal capabilities of the firm to achieve the vision, with the success of a strategy reliant on two vital factors.