Introduction to Business Strategy and Market Analysis

Question 1

What is strategic planning?

Answer 1

Procedures for determining an entity’s long-term goals and identifying the approaches for achieving those goals and objectives

Question 2

What are the general steps to strategic planning?

Answer 2

1) Establish mission, values, and goals
2) Assess environment in which it is operating
3) Establish objectives
4) Formulate strategies
5) Implement Strategies
6) Evaluate and control activities

Question 3

What is a mission statement?

Answer 3

Express of the purpose and range of it’s activities

Question 4

Define goals?

Answer 4

General purpose towards which entity endeavors are directed

- Typically mid-long term

Question 5

How does an an entity assess it’s external and internal environment?

Answer 5

• Analyze macro-enviornment (external)
• Analyze the industry (external)
• Analyze its own strengths and weaknesses, opportunities and threats in the environment, and relationship between environment and entity

Question 6

How does an entity establish objectives?

Answer 6

State the desired measure results to be achieved

Question 7

How does an entity formulate strategies?

Answer 7

Porter generic strategies:

• Cost leadership
• Differentiation
• Focus