(ALTER) SEMI:PPT.5 Strats Formulation Flashcards
The process of creating a strategic plan by analyzing internal and external environments and defining objectives.
Strategy Formulation
The long-term aspiration of the organization.
Vision
The purpose, values, and primary objectives guiding the organization.
Mission
Assessing internal capabilities such as resources, culture, and performance.
Strengths and Weaknesses
Evaluating tangible (e.g., finances) and intangible (e.g., intellectual property) assets.
Resources and capabilities
Identifying factors like market trends and competition
Opportunities and Threats
Evaluating external Political, Economic, Social, Technological, Environmental, and Legal factors.
PESTEL Analysis
Assessing competition, supplier/buyer power, potential entrants, and substitutes.
Porter’s Five Forces
A tool to identify Strengths, Weaknesses, Opportunities, and Threats.
SWOT Analysis
Objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound.
Strategic Objectives
Creating multiple paths to achieve objectives.
Considering risks, resources, competitive advantage, and alignment with goals.
Evaluating and selecting the best strategy
Allocating resources, setting up structures, and ensuring communication and leadership.
Implementing the strategy/Strategic implementation
Dividing markets into groups based on shared characteristics.
Criteria: Demographics, location, and behavior.
Market segmentation
The specific group of customers most likely to purchase.
Target market
Targeting the entire market with a single offering (useful for mass-market products)
Undifferentiated Strategy
Offering different products or services for different customer segments (for example, premium vs. budget versions)
Differentiated Strategy:
Focusing on a specific niche market (e.g.. targeting high-end luxury consumers).
Concentrated Strategy
Customizing offerings for individual customers or very small segments (e.g., one-to-one marketing or personalized products).
Micromarketing or Personalized Strategy
is a semi-fictional representation of your ideal customer, based on data and insights gathered from market research, current customers, and observations.
Customer persona
