Chapter 10 - Strategic Planning - Management
Weaknesses and Threats (WT)
How can you minimize your weaknesses and avoid threats?
Strengths and Threats (ST)
How can you take advantage of your strengths to mitigate or avoid real and potential threats?
Weaknesses and Opportunities (WO)
How can you use your opportunities to overcome the weakness you are experiencing?
Strengths & Opportunities (SO)
How can you use your strengths to take advantage of opportunities?
Strengths
Internal resources that are available or things that an organization does well
Strategic Management Process
A nine-step process that involves strategic planning, implementation, and evaluation
Retrenchment Strategy
A strategy characteristic of a company that is reducing its size, usually in an environment of decline
Growth Strategy
A strategy in which an organization attempts to increase the level of its operations; can take the form of increasing sales revenue, number of employees, or market share
Stability Strategy
A strategy that is characterized by the absence of significant change
Core Competency
Any of the strengths that represent unique skills or resources that can determine the organization's competitive edge
SWOT Analysis
Assessment of an organization's strengths, weaknesses, opportunities, and threats in order to identify a viable strategy that the organization can pursue
Threats
Negative external environmental factors
Acquisition
Occurs when a larger company buys a smaller one and incorporates the acquired company's operations into its own
Merger
Occurs when two companies, usually of similar size, combine their resources to form a new company
Opportunities
Positive external environmental factors
Weakness
Resources that an organization lacks or important activities that it does not do well
Effectiveness
The degree to which manners attain organizational objectives
Efficiency
The degree to which organizational resources are utilized and contribute to productivity
Grand Strategies
The four primary types of strategies - growth, stability, retrenchment, and combination
Mission Statement
The purpose of an organization
Combination Strategy
The simultaneous pursuit by an organization of two or more of growth, stability, and retrenchment strategies