There are several models on designing a company’s strategy. Some
strategy design models focus on the contents while others focus on the
process. However, none of them consider risks as part of the strategy
formulation while risks are important ingredients on decision making at
strategic level as well as operational level. Furthermore, social and
environment become two main, emerging issues that potentially raise
risks and may put a company into trouble. For that reason this study
attempts to propose a strategy design model that incorporates risks into
the strategy formulation process. Social and environmental issues
become integral part of the strategy formulation process. This proposed
model attempts to combine both content and process approaches on
strategy design. By putting risks at this stage, the company may
anticipate major changing in the external and internal environments,
mainly the shift in strategic group in which the company competes and as
a result, the company may be able to build sustainable competitive
advantages.