SEMIFINALS:PPT.5:STRATEGIC FORMULATION Flashcards
the process of creating a strategic plan for an organization by defining its direction and making decisions about how to achieve its objectives
Strategic formulation
The long-term aspiration of the organization-what it wants to become In the future
Vision
A concise statement describing the organization’s purpose, values. and primary objectives.
Mission
Identify the firm’s internal strengths and weaknesses by evaluating resources, capabilities, core competencies, organizational structure, culture, financial health, and current performance
Strength and weaknesses
Assess tangible and intangible resources and evaluate operational efficiency, innovation capabilities, and marketing strengths.
Resources and Capabilities:
What r the tools for external analysis?
- Opportunities and threats
- Pestle analysis
- Porters five forces
Assets and capabilities firm utilizes to create value, build competitive advantage, and sustains it’s operation.
Resources
Physical, measurable assets like buildings, machinery, and inventory.
Tangible Resources
Non-physical assets like intellectual property, brand equity, and organizational culture.
Intangible Resources
The skills, knowledge, and creativity of employees contribute to innovation and competitiveness.
Human Resources (People)
Abilities to utilize resources and coordinate activities to meet objectives.
Organizational Capabilities
Funds available for growth, expansion, and economic resilience.
Financial Resources and Capital Structure
Infrastructure and equipment essential for operations.
Physical Assets and infastructure
The ability to leverage resources to perform activities efficiently and meet strategic goals.
Internal Capabilities
Developing new products, services, or processes for differentiation and competitive advantage.
Innovation Capability
Managing day-to-day activities to maintain quality and competitive costs.
Operational Capability
Building lasting relationships to enhance loyalty and satisfaction.
Customer Relationship Capability
Creating, maintaining, and enhancing brand identity to achieve loyalty and market share.
Brand Management Capability
Attracting, retaining, and deploying skilled employees effectively.
Human Resource and talent Management Capability
Handling financial resources to ensure operational stability and growth.
Financial Management Capability
Using technology to improve operations, innovate, and enhance customer experiences.
Technological Capability
Promoting products/services and converting leads into customers.
Marketing and Sales Capability:
Setting goals and executing plans effectively.
Strategic Planning and Execution Capability
Gathering, storing, and applying knowledge to drive innovation and efficiency
Knowledge Management Capability
Unique capabilities critical to gaining competitive advantage.
Example:Integration of resources and capabilities to deliver exceptional value.
Core competencies
