Planning & Strategic Management

Six Steps of Strategic Management

1. Establishment of mission, vision, and goals 2. Analysis of external opportunities 3. Analysis of internal strengths 4. SWOT 5. Strategy implementation 6. Strategic control

Resources

Inputs to a system that can enhance performance.

Distinguish between cost and differentiation strategies to gain competitive edge.

Low-Cost strategy focuses on good quality for lower cost than competitor, whereas the differentiation brings something unique that competitors do not offer or cannot produce.

Strategy Map

Shows the relationship between a firm's practices & long-term success.

Conglomerate Diversification

To add new businesses that produce unrelated products or are in unrelated markets.

Low-Cost Strategy

A strategy an org uses to build competitive advantage by being efficient and offering a standard no-frills product.

Concentration

A strategy employed for an org that operates a single business and competes in a single industry.

Concentric Diversification

A strategy used to add new businesses that produce related products or involve related market activities.

Strategic Control System

A system designed to support managers in evaluating the orgs progress regarding its strategy and when discrepancies exist, taking corrective action.

Core Capability

A unique skill or knowledge an org possesses that gives it an edge over competitors.

Stakeholders

Groups of individuals who affect and are affected by the achievement of the orgs mission, goals, and strategies.

Part of Strategic Planning Process

Ideally, strategic plans integrate all the bottom-line practices of the firm.

Six Steps of Basic Planning

1. Situational Analysis 2. Alternative goals & plans 3. Goal & plan evaluation 4. Goal & plan selection 5. implementation 6. Monitor & control

The Role of Core Capabilities within Strategic Planning

A company's core capabilities are related to something they can do extremely well and or are more efficient at vs the competitor. Depending on the resources, ie., tangible such as access to money or materials, or intangible such as talented staff or knowledge.

Strategy

A pattern of actions and resource allocations designed to achieve the organization's goals.

Strategic Management

A process that involves managers from all parts of the org in the formulation and implementation of strategic goals and strategies.

Tactical Planning

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the org, such as a functional area like marketing.

Differentiation Strategy

An org uses this to build competitive advantage by being unique in its products or services within its market segment in one or more dimensions.

Strategic Planning

An organization's decisions and actions in response to constantly changing business environment.

Strategic Management Process

Both strategic planning and the decision process are similar.

Strategy Map

Creating Value by Aligning Goals. Learning & Growth Goals - Internal Goals - Customer Satisfaction Goals - Financial Goals.

Strategic Goals

Major targets or end results relating to the organizations long-term survival, value, and growth.

BCG Matrix

Most popular technique to analyze a corporations portfolio. Boston Consulting Group. It looks at the relative competitive position & market growth.

Functional Strategies

Strategies implemented by each functional area of the org to support the orgs business strategy.

SWOT

Strengths Weaknesses Opportunities Threats

Vertical Integration

The acquisition or development of new businesses that produce pats or components of the orgs product.

Strategic Vision

The long-term and strategic intent of a company.

Business Strategy

The major actions by which a business competes in a particular industry or market.

Contrast mission from strategic goals

The mission is the basic purpose and scope of operations and strategic goals are more defined targets or end results relating to the orgs long-term survival, value, and growth.

Benchmarking

The process of comparing how well a company is doing vs a competitor.

Operational Planning

The process of identifying the specific procedures and processes required at lower levels of the organization.

Corporate Strategy

The set of businesses, markets, or industries in which an org competes and the distribution of resources among those entities.

Differentiate strategic vision from strategic mission.

The strategic vision includes the long-term intent of the company and the strategic mission is the basic purpose of the businesses scope of operations.