strategy and implementation Flashcards
business objectives and starategy
a strategy is the means by which a business seeks to achieve their aims and objectives in the medium/ long term
designed by senior management team and requires allocation of resources in terms of time and physical equiptment
shouldnt be rigid shpuld allow for regular feeback to check that its working how its supposr to in reponse to changing circumstances- feedback loop
business objevtive should be inline with SMART model in relation to business environment as well as internal factors- financial resources, brand strength, skills and managaement/ employees
influences upon strategies- evaluation
- do have sufficent skills
- is brand strong enough to changing stratedy
- do have sufficient skills managment and employees
external impact on strategies success - do employees need more training
heurarchial process-
starts with setting corportate strategy and puts into action by business functions that designs strategies to fufil objectives
corporate strategy
decisions that will effect the entire business and its profitability and performance , a plan that helps the business achieve long term goals, sets out goals and objectives for long term and how intend to achieve
strategic decision
course of action that leads to achievement of stated goals of the corporate stategy
establish firectuin and decide how objectives will be achieved
normally contains a clear mission statement help focus on objectives
measures achievement of objectives
divisional strategy
directing divisions within organisation. overall corporate strategy will be communicated to divisional managers
e.g corporate strategy focusing on rapid growth in demand, divisional managers decisions tailored to meet tis demand
eath division, responsible for a product line, market or geographical area
each division may develop on=wn strategy based on competitive enviro and market conditions but in line with corp strategy
functional strategy
where strategy relates to a single function e.g. marketing strategy decisions made at this level are guided and limited by higher level corporate and divisional strategies
what is a corporate plan
sets out what business is trying to achieve and how they intend to do this.
includes corporate objectives and strategies, strategies for each function
strengths of corporate plan
based on SWOT analysis helps firm identify each component and act accordingly
encourages proactive approach to planning
provides clear targets motivate staff
weaknesses of corporate plan
risk plan becomes too outdated
uses up a lot of management time
must be flexible or risk missing out on opportunities
what are tactics
- short term responding to opportunities and threats
- increase size WF
- in store promotions, predatory pricing
- middle management in functional areas
- flexible and adaptable due to PESTLE factor influences
- less commitment resources
why use SWOT analysis
-help create corporate objectives
how to build on strengths exploit opportunities
minimise impact of weaknesses and threats
gain overall picture potential influences on future business success
gain competitive avantage
