Strategic Planning

Question 1

Strategic management

Answer 1

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

Question 2

External Opportunities and Threats
Analysis

Answer 2

• Industry and Market
• Competitor
• Political/Regulatory
• Social/Demographic
• HR/Labor
• Macroeconomic
• Technological
• Remember Stakeholders!

Question 3

Internal Strengths and Weaknesses Analysis

Answer 3

• Financial situation
• Market position
• Operations
• Human Resources
• other analysis of internal activities as needed

Question 4

Core Competencies

Answer 4

• This is the unique combination of skills, knowledge and resources that an organization possesses, and which gives it an edge over the competition.

Question 5

Benchmarking

Answer 5

• process of assessing how well one company’s basic functions and skills compare with those of another company or set of companies.
• goal of benchmarking is to thoroughly understand the “best practices” of other firms and to undertake actions to achieve both better performance and lower costs

Question 6

The Generic Value Chain

Answer 6

The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

The value chain highlights both primary and support activities as a product or service makes its way from development to sales and after-market service, with each step adding value that generate a margin that translates into profit

Question 7

External Enviroment

Answer 7

all forces outside the organization’s control, including its Competitive Environment and the Macroenvironment, which are depicted here in graphical form.

Question 8

Internal Environment

Answer 8

conditions, routines, and beliefs that influence the decisions and behavior at all organizational levels.

Question 9

Porter’s 5 Forces

Answer 9

1.Rival Firms- these are the current firms in an industry

2.New Entrants- new competitors may be limited by Barriers to Entry

3.Customers- can decide where to spend their money!

4.Substitutes/Complements- customers can use alternative and complimentary products.

5.Suppliers- can affect firms in many ways, such as in switching costs.

Question 10

Strategy Implementation

Answer 10

• Define strategic tasks
• Assess organization capabilities
• Develop an implementation agenda
• Create an implementation plan

Question 11

Strategic Control

Answer 11

• Once you complete the other steps and have implemented the strategy, there has to be a way to see how you the organization is doing and take corrective action when things are not going according to plan…