In this paper a framework is proposed for the formulation of a higher education institutional (HEI) strategy. This work provides a practical example, through a case study, to demonstrate how the proposed framework can be applied to the issue of formulation of HEI strategy. The proposed hybrid model is based on two operational research methodologies. These techniques help to formulate a strategic decision-making model which represents different factors and alternatives, assess their priorities, and provide a decision-making mechanism. In addition, our proposed approach incorporates derived global priorities of strategic options in order to optimise different types of resources. The proposed model is dynamic in that it adapts to changing economic and environmental conditions and hence has the capability to provide "what-if" analysis. The framework is applied in the context of strategic decision-making for a business school and involves key stakeholders who have responsibilities for strategic functions within the HEI and the school.