Planning And Strategy Formulation Flashcards
Why plan?
To id future opportunities
Anticipate and avoid future problems
Develop courses of action
Understanding the risks and uncertainties associated with various options
What does strategic planning include?
Longer term master plan
Shorter term functional and operational plans
Contingency planning, preparing for the unexpected and major and quick changers
What are the three questions addressed by strategic planning?
Where are we now?
Where do we want to be?
How are we going to get there?
Define “Vision”
What kind of organization do we want to be at some point in the future
What are the four main components of “mission”
Core purpose
Core strategies
Core values
Core behavior standards
Define Core Purpose
Fundamental reason for organization existing, distinguish between what an organization does and what business it is
Define core strategies
The handful of things the organization has to do well in order to thrive in the industry
Define Core Values
Key principles for which the organization stands and which guides the behavior of employees they can be of ethical and moral values or business-performance related
Define Core behavior standards
Behavior expected of employees to ensure they stick to the core values and carry out the core strategies
What is SWOT analysis?
An assessment of strengths, weaknesses, opportunities and threats
What are the characteristics of strategic objectives?
Set for the longer term (at least five years) Essential for both strategy formulation (planning) and strategy evaluation (controlling) They must "SMART" Specific Measurable Ambitious, but achievable Relevant to firms strategic intent Time related
Define corporate-level strategies
Are concerned with the types and number of businesses and industries in which an organization should operate
Name the four corporate-level strategies
Internal growth strategies
External growth strategies
Turnaround strategies
Co-operative strategies
What are internal growth strategies?
Market penetration Market development Product development Consolidation Innovation
What are the external growth strategies?
Vertical forward integration
Vertical backward integration
Horizontal integration
Diversification
