Strategic Planning Flashcards
Steps of the Strategic Planning Process
- Establish mission, vision, and goals
- Analyzing external opportunities & threats
- Analyzing Internal strengths & weaknesses
- SWOT (Strength, Weakness, Opp. Threats) analysis
- Strategy Implementation
- Strategic Control
SWOT Analysis
Strengths- Internal Resources and effective processes
Weaknesses- Lack of resources, & ineffective processes
Opportunities- New technologies or markets
Threats- Competitors
Strategic Mission
A clear and concise expression of the company purpose(s).
Strategic Vision
Provides perspective on where the company is headed and what it could become.
Core Capabilities
Knowledge, expertise, and skills that allow a company to be a leader in its industry
Competitive Advantage Strategies
Cost Leadership - Become the lowest cost producer
Differentiation - offering highest quality or most innovative to differentiate from competitors
Focus - cater to a narrow target market
Vertical Integration Strategy
Company expands to include not only the supply chains but the distribution channels as well.
Concentric Diversification Strategy
Company moves from primary industry to new but still related business. Ex. Healthfood company moving to sell vitamins
Conglomerate Diversification Strategy
Company expands from their primary industry into unrelated industries.
Strategic Goals
Major targets or results that relate to and help ensure the long-term survival, value, and growth of the company.
Organic Structural Model
Decentralized control, communication is lateral and its formalization is that of a low degree. Coordination is low and the definition of tasks is flexible. Has simple differentiation and its influence is based on the expertise.
Mechanistic Structural Model
Very firm or inflexible such that it is slow in adapting to the changes of environmental conditions. Not well suited by market competitive conditions such as the conditions used in the telecommunications. Communication is vertical.
Value Chain
The sequence of events/activities that a product undergoes from raw materials to delivered goods/service with each step adding to quality and value for the customer.
Six Sigma
A set of statistical tools to analyze the cause of product defects and increase quality to the degree of 99.99966% (less than 3.4 defects per million units).
Managing Company Resources
- Analysis of Organizational Plans and Objectives
- Preparing a Human Resources Inventory
- Assessing Future Supply and Demand
- Matching Supply and Demand
- Establishing an Action Plan
