Strategic Planning

Question 1

What is Strategic Planning?

Answer 1

Strategic planning is a process that involves describing the organization’s destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward. The main goal of strategic planning is to allocate resources in a way that provides organizations with a competitive advantage.

Question 2

Purposes of Strategic Planning

Answer 2

1. Helps define the organization’s identity
2. Helps organizations prepare the future
3. Enhances ability to adapt to environmental changes
4. Provides focus and allows better allocation of resources Produces an organizational culture of cooperation
5. Allows for the consideration of new options and opportunities
6. Provides employees with information to direct daily activities

Question 3

Performance management systems must rely on the _______ ____ to be useful.

Answer 3

strategic plan

Question 4

Process in creating a strategic plan - steps

Answer 4

(1) the conduct of an environmental analysis
(2) the creation of an organizational mission
(3) the creation of an organizational vision (
(4) setting goals
(5) the creation of strategies that will allow the organization to fulfill its mission and vision and achieve its goals

Question 5

Gap Analysis

Answer 5

A gap analysis consists of pairing strengths and weaknesses with opportunities and threats and determining whether the situation is advantageous (i.e., lever- age), disadvantageous (i.e., problem), or somewhere in between (i.e., constraint and vulnerability).

Question 6

Mission include:

Answer 6

• Basic product or service to be offered (does what?)
  Primary markets or customer groups to be served (to whom?)
• Unique benefits and advantages of products or services (with what benefits?)
• Technology to be used in production or delivery
• Fundamental concern for survival through growth and profitability
  Mission statements also typically include information about the organization’s values and beliefs, including:
• Managerial philosophy of the organization
• Public image sought by the organization
• Self-concept of business adopted by employees and stockholders

Question 7

Vision must be

Answer 7

Brief, Verifiable (reality test), bound by a timeline, current, focused, understandable, inspiring, a stretch