Chapter 6 Flashcards
long term success of an organization and their ability to grow is predicated on (2)
=> growth and profitability =
- ability to define and create a strategic direction and market position (strategic plan)
- ability to execute on core tactical initiatives within the plan to ensure success
=> strategy + tactics execution
where do we plan to play?
why is this the best use of resources?
how do we plan to win?
strategy
core elements of business strategy (6) - PMPRBR
- purpose
- markets
- products and services
- resources
- business system configuration
- responsibility and accountability
refers to mission of organization and vision of management
purpose
fundamental purpose the business has identifies as their predominant reason for existence
mission
forward-thinking statement that defines what a company wants to become and where its going
vision
refers to a review of current ____ offered and potential new ones; works with R&D
products and services
refers to modifying the organizations infrastructure and the way it does business to ensure success of plan (i.e. distribution, warehousing, manufacturing, etc)
business system configuration
refers to identifying who in the business will be responsible for each aspect of strategic plan
responsibility and accountability
SMART goals
specific, measurable, actionable, realistic, time sensitive
strategic planning process
revisit purpose
=> undertake I/E analysis to understand environment
==>assess our view of the world
===>choose a direction “where will we play?”
====>implement our strategy
Porter’s 5 Forces
1) rivalry among existing competitors
2) threat of new entrants
3) threat of substitute products or services
4) bargaining power of suppliers
5) bargaining power of buyers
advantage an organization has over its rivals which enables it to generate greater sales/margins and create preference for products in minds of customers -> “more value”
competitive advantage
defines what the organization intends to accomplish and where it plans to compete
corporate-level strategy
outlines specific objectives the organization hopes to achieve for each of its identifies business initiatives/business units
business-level strategy
detailed immediate-term set of objectives and corresponding tactics designed to achieve a specific business initiative
operating plan
- market opportunity identification
- value prop. and pos. analysis
- revenue driver identification and sales forecasts
- upfront and ongoing cost committed requirements
- staffing, infrastructure and process realignment requirements
operating plan formulation fundamentals
the level of financial and operational commitment of an organization incurs as a result of implementing the organizations strategies
directional lock-in
strategic planning in NFP sector: maintain balance between need to create effective economic base and ensuring social mission and goals met
mission balance
strategic planning in NFP sector: enhance through maintenance/growth of membership community/base
vitality
strategic planning in NFP sector: ensuring involvement of community where located and population it serves are reflected in strategy
collective entrepreneurship
strategic planning in NFP sector: strengthen partnerships and NFP networks
rootedness
strategic planning in NFP sector: ensure products and services are priced appropriately
operational effectiveness
