Tags: Sexual Abuse Research PaperHow To Write A Persuasive Essay OutlineA Critical Essay Upon The Faculties Of The MindStrategic Planning In Business ManagementOcr As Electronics CourseworkGeography Coursework Walton On The NazeSpeculative Cover Letters For Graduates
This includes evaluating an organization’s external and internal environments and analyzing its competitors.During an external environment analysis managers look into the key external forces: macro & micro environments and competition.
Vision is the ultimate goal for the firm and the direction for its employees. It informs organization’s stakeholders about the products, customers, markets, values, concern for public image and employees of the organization (David, p.
93) Components: Internal environment analysis, External environment analysis and Competitor analysis Tools used: PEST, SWOT, Core Competencies, Critical Success Factors, Unique Selling Proposition, Porter's 5 Forces, Competitor Profile Matrix, External Factor Evaluation Matrix, Internal Factor Evaluation Matrix, Benchmarking, Financial Ratios, Scenarios Forecasting, Market Segmentation, Value Chain Analysis, VRIO Framework When the company identifies its vision and mission it must assess its current situation in the market.
In an organization, strategies are chosen at 3 different levels: Components: Annual Objectives, Policies, Resource Allocation, Change Management, Organizational chart, Linking Performance and Reward Tools used: Policies, Motivation, Resistance management, Leadership, Stakeholder Impact Analysis, Changing organizational structure, Performance management Even the best strategic plans must be implemented and only well executed strategies create competitive advantage for a company.
At this stage managerial skills are more important than using analysis.
The other very important part of strategy implementation is changing an organizational chart.
For example, a product diversification strategy may require new SBU to be incorporated into the existing organizational chart.It also redistributes responsibilities and powers between managers.Managers may be moved from one functional area to another or asked to manage a new team.Most often, the strategic planning process has 4 common phases: strategic analysis, strategy formulation, implementation and monitoring (David The starting point of the process is initial assessment of the firm.At this phase managers must clearly identify the company’s vision and mission statements.Internal analysis includes the assessment of the company’s resources, core competencies and activities.An organization holds both tangible resources: capital, land, equipment, and intangible resources: culture, brand equity, knowledge, patents, copyrights and trademarks (Rothaermel, p. A firm’s core competencies may be superior skills in customer relationship or efficient supply chain management.Or market development strategy may require an additional division to be added to the company.Every new strategy changes the organizational structure and requires reallocation of resources.Communication in strategy implementation is essential as new strategies must get support all over organization for effective implementation.The example of the strategy implementation that is used here is taken from David’s book, chapter 7 on implementation The first point in strategy implementation is setting annual objectives for the company’s functional areas.