...the firm's strategy, then communicate it down the organization for implementation. The following is a flowchart model of this process: The Strategic Planning Process Mission | V Objectives | V Situation Analysis | V Strategy Formulation | V Implementation | V Control This process is most applicable to strategic management at the business unit level of the organization. For large corporations, strategy at the corporate level is more concerned with managing a portfolio of businesses. For example, corporate level strategy involves decisions about which business units to grow, resource allocation among the business units, taking advantage of synergies among the business units, and mergers and acquisitions. In the process outlined here, "company" or "firm" will be used to denote a single-business firm or a single business unit of a diversified firm. Mission A company's mission is its reason for being. The mission often is expressed in the form of a mission statement, which conveys a sense of purpose to employees and projects a company image to customers. In the strategy formulation process, the mission statement sets the mood of where the company should go. Objectives Objectives are concrete goals that the organization seeks to reach, for example, an earnings growth target. The objectives should be challenging but achievable. They also should be measurable so that the company can monitor its progress and make corrections as needed. Situation Analysis Once the...
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...elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan. Situation Analysis The situation analysis provides the information necessary to create a company mission statement. Situation analysis involves "scanning and evaluating the organizational context, the external environment, and the organizational environment" (Coulter, 2005). This analysis can be performed using several techniques. Observation and communication are two very effective methods. To begin this process, organizations should observe the internal company environment. This includes employee interaction with other employees, employee interaction with management, manager interaction with other managers, and management interaction with shareholders. In addition, discussions, interviews, and surveys can be used to analyse the internal environment. Organizations also need to analyse the external environment. This would include customers, suppliers, creditors, and competitors. Several questions can be asked which may help analyse the external environment. It examines the company’s relationship with its customers and its suppliers. It also seeks to find out if the company have a good rapport with its creditors, if it’s actively trying to increase the value of the business for its shareholders and who the competition is. Strategy Formulation Strategy formulation involves...
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...this highly competitive business environment, a firm must engage in strategic planning process that could define its objectives and assess both the internal and external situation; allowing the company to formulate strategy, implement strategy, evaluate progress and able to make adjustment as necessary to stay on track. There are many approaches to strategic planning but typically a three-step process may be used: * Situation - evaluate the current situation and how it came about. * Target - define goals and/or objectives (sometimes called ideal state) * Path / Proposal - map a possible route to the goals/objectives The Strategic Planning Process Mission & Objectives Mission & Objectives Environmental Scanning Environmental Scanning Strategy Formulation Strategy Formulation Strategy Implementation Strategy Implementation Evaluation & Control Evaluation & Control Mission and objectives It describes the company’s business vision. It includes a firm values, purpose and goals that help to pursue future opportunities. Having a business vision helps firm’s leaders to define measurable financial and strategic objectives. Financial objectives involve measures such as sales target. Environmental Scan It involves the following components: * Internal analysis of the firm * Analysis of the firm’s industry (task environment) * External macro environment (PEST analysis) Having to define the internal analysis, it identifies the firm’s...
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...assessing both its internal and external situation and formulating strategies, implementing the strategies, evaluating progress and making adjustments as may be necessary to ensure the organization stay on track. It is a method organizations use to conceive and implement a strategy that can lead to a sustainable competitive advantage. Through strategic management organizations establish goals and objectives, formulate actions (strategies) designed to meet these objectives in the desired timescales, implement the actions and assess progress and results. The process is a systematic or emerged way of performing strategic planning in organizations, through analysis, strategy formulation, its implementation and evaluation. The strategic management process model chosen by a company will depend on the organization’s culture, leadership style, and the experience the firm has in creating successful strategies. The components of a strategic management planning process fall in five main categories: initial assessment, strategic analysis, strategy formulation, implementation and monitoring. At the initial assessment phase the organization needs to identify its mission and vision. The vision will help the managers visualize the company’s future, managers will be able to know where they want to go and what they want to achieve. It is the ultimate goal for the firm and the direction for the firms’ employees. The mission will describe the company’s business. It will inform the organizations stakeholders...
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...strategic management. These types vary from one business to another, depending on the leadership styles, the experience a company has earned in coming up with a successful strategy and organizational culture (Smircich et al., 1985). There are different components of strategic procedure that are spread all over the stages of strategic planning. In most cases, strategic planning system consists of four most common phases which include a strategy analysis, formulation of the strategy, the implementation phase, and finally monitoring stage. However, this assignment will look at the five steps and offer an in-depth analysis of the different stages (Covin & Slavin, 1989). The first stage of strategic management is the initial assessment. This is usually the starting point for every company and it involves the managers identifying the company vision and the mission. In this case, the vision states where the company desires to be, whereas the mission describes the organization’s business operations and standards of working. After the identification of the enterprise mission and vision, the manager should evaluate the company’s internal and external environment and analyze its competitors (David, 2007). This is the second stage of the strategic process, which involves the analysis of the strategy. In internal analysis, the managers look at the company's core competencies, resources, and the activities. On the other hand, the external analysis involves an evaluation of the enterprise’s...
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...Process Introduction The strategic management process is more than just simple rules. It is a rational approach used in businesses. It starts with management thinking strategically, then applying steps and thought to a process. This process should be understood by everyone in the business. Although it starts with upper management, it should be implemented throughout the entire business and everyone should be included. According to Popescu, in the International Conference on Management and Industrial Engineering “The process of strategic management consists of an ongoing analysis, decisions, and actions activities to create and sustain competitive advantages in order to obtain desired competitive position and achieve strategic objectives”(Popescu,2013). This process is not one simple step and can be complex. It is not a onetime occurrence and can happen multiple times. The ongoing analysis, decisions, and actions that are performed should include all people involved. Everyone should be on the same page throughout the strategic management process. Goal Setting It is important for any business to set goals. Goals give businesses a purpose. It helps to organize the direction in which a business should take. Businesses should always have goals and let the goals be clear. Goals should be clear to both managers and employees. Short term and long term goals should be established. These goals should be evaluated throughout the strategic management process. According to Campbell...
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...1. 2. 3. Which strategies aim at improving internal weaknesses by taking advantage of external opportunities? a. b. c. d. e. SO WO SW ST WT 4. How many cells are in a SWOT Matrix? a. b. c. d. e. Two Four Six Eight Nine 5. What are two external dimensions of the SPACE Matrix? a. b. c. d. e. Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength 6. In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. b. c. d. e. A strong industry An unstable environment A stable environment A weak industry A weak financial position 7. Selling all of a company’s assets in parts for their tangible worth is called a. Joint venture. b. Divestiture. c. Concentric diversification. d. Liquidation. e. Unrelated integration 8. Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. b. Stage 1 Stage 2 c. d. e. Stage 3 Stage 4 Stage 5 9. 10. Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. Backward integration b. c. b. c. Divestiture Forward integration Cost leadership Related diversification 11. What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. e. Competitive Profile Matrix...
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...Using Correlation Analysis What is the purpose of using correlation analysis? How might correlation analysis be used in business decisions or in strategy formulation and implementation? Provide an example Correlation is a synonym that describes how someone or something is similar. It can also be used to illustrate instances of similarity among situations, people, or things that are otherwise different in nature to the other situations, people, or things. Businesses can effectively use correlation analysis to determine what common factors impact undesirable outcomes so that the managers are able to make changes, and the process also helps in determining the factors that impact desirable outcomes so that managers can take note of what to continue doing. Correlation analysis basically allows those evaluating various aspects of the business to make connections by analyzing cause and effect of various outcomes. It can be used in business decisions or in strategy formulation and implementation if a business were to use it effectively.Take an example of a small business. that determined that, over the course of the last six years, the business' revenue shot up over 40% each year when the business invested in professional, targeted marketing services versus the other three years in which the business lost money or broke even when the business owner whose skill set is in construction took on the task of building the company's marketing campaign by experimenting and using new...
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...What is the purpose of using correlation analysis? How might correlation analysis be used in business decisions or in strategy formulation and implementation? Provide an example Correlation is a synonym that describes how someone or something is similar. It can also be used to illustrate instances of similarity among situations, people, or things that are otherwise different in nature to the other situations, people, or things. Businesses can effectively use correlation analysis to determine what common factors impact undesirable outcomes so that the managers are able to make changes, and the process also helps in determining the factors that impact desirable outcomes so that managers can take note of what to continue doing. Correlation analysis basically allows those evaluating various aspects of the business to make connections by analyzing cause and effect of various outcomes. It can be used in business decisions or in strategy formulation and implementation if a business were to use it effectively.Take an example of a small business. that determined that, over the course of the last six years, the business' revenue shot up over 40% each year when the business invested in professional, targeted marketing services versus the other three years in which the business lost money or broke even when the business owner whose skill set is in construction took on the task of building the company's marketing campaign by experimenting and using new marketing software and reading...
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...2013 Company: Mace Group Ltd. Zahid Table of contents 1. Introduction 1 2. Mace Group: A brief overview 1 3. Strategic analysis 2 3.1 Industry Analysis 2 3.1.1 Porter’s five forces 2 3.2 Strategy Description 4 3.2.1 Ansoff Matrix 5 3.3 Strategy Evaluation 5 SWOT analysis 6 Strengths 6 Weaknesses 7 Opportunities 7 Threats 7 3.4 Strategic Issues 8 3.5 Strategic Recommendations 8 4. Strategy formulation 9 5. Strategy implementation 12 6. Conclusion 14 References 15 Table of figures Figure 1: Porter's five forces model 2 Figure 2: Ansoff Matrix 5 Figure 3: SWOT analysis 6 Figure 4: Strategic formulation and implementation 9 1. 2. Introduction Strategic management is the integratedaction to manage the resources and performance of the firm, aiming the optimum output. The whole process initiates with the commencement of specific mission and visionary objectives for the organization, following the policies and plans required to achieve these. In simple sense, strategic management is the combination of strategic analysis, strategy creation, implementation and monitoring(Thompson, 2001). The final outcome is the competitive advantage which in turn ensures the sustainability of the firm for the long run. According to Rothaermel, F. T. (2012) strategic management is an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.” So, in broader sense, Strategic management entails the whole...
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...used to simplify the management by establishing policies to deal with situations that are likely to occur. Policies are operating rules that can be referred to as a way to maintain order, security, consistency, or otherwise furth a goal or mission. For example, a town council might have a policy against hiring the relatives of council members for civic positions. Each time that situation arises, council members can refer to the policy, rather than having to make decisions on a case-by-case basis. In the automotive industry, policy-based management is used as an administrative tool throughout an enterprise or network, or on automated-machines that have multiple users. Policy-based management includes policy-based network management, the use of delineated policies to control access to and priorities for the use of resources. Policy-based management is often used in systems management. Policy-based management of a multi-user workstation used in the computing section of the automotive industry, typically includes setting individual policies for such things as access to files or applications, various levels of access (such as "read-only" permission, or permission to update or delete files), the appearance and makeup of individual users' desktops and so on. There are a number of software packages available to automate some elements of policy-based management. In general, the way these work is as follows: business policies are input to the products, and the software communicates to...
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...The systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices. The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. The strategic management defines in many ways according to business variables on: the management process and functions; environment scanning ; turbulent environment; collective processes; strategic plan; and organization road map that will extensively and comprehensively expound the applicability of this concept to the corporate world. 1. It is the management process through the formulation, organization, execution and evaluation of the organizational resources to meet the desired goals in the future. This definition provides an assessment as to the management process and functions of the different levels of managers on how the formulation of the organizational goals, the designed structure and systems, the strategic position to implement the quality assurance program and evaluate the designed systems of improvement. 2. The systematic study of the environmental analysis of the competitors and customers to provide an optimum profitability of the investment in the organization. This definition emphasizes the environmental scanning of the internal environment (materials, manpower and financial resources) and external environment (political...
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...University of Phoenix STR GM/581 July 19, 2010 Approaches to Global Strategy Introduction Arc welding machine manufacturing will be producing welding machines, and selling them to Canada. Their most popular machine is to consider the XM-350, because of the flexibilities of the machine. The machine can be set to perform gas tungsten arc welding (GTAW) or shield metal arc welding (SMAW). Foreign Country and Domestic Country United Kingdom (foreign) population was approximate 62.2 million in 2010 with an annual growth rate of 0.56 percent. The United Kingdom has the sixth largest economy in the world, which is the second largest economy in the European Union (Department of State, n.d.). The country primary religions consist of Church of England (Anglican), Church of Scotland (Presbyterian), Muslim, and Roman Catholic. The literacy rate is estimated to be around 99%, the workforce consist of 31.25 million with a breakdown of 80.4% services, 18.2% industry, 1.4% agriculture (Department of State, n.d.). Canada (Domestic) is the second largest country in the world. The population was estimated to be around 33.7 million in 2009. The religious make of Canada consist of the following: Roman Catholic 43.6%, Protestant 29.2%, Christian 4.3%, Muslim 2.0%, Jewish 1.1, Buddhist 1.0, other 1.3 % and others 16.5% ( Department of State, n.d.). The predominant language spoken in Canada is English. The country Gross Domestic Product (GDP) in 2008 was $1.2 trillion, Canada export...
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...Strategic Planning For Business Unit The Strategic Planning for Business Unit is briefly sketched as below: External Environ-ment Mission Stateme-nt Strategies formulat-ion Program formulat-ions Goals formulat-ion Feedback and Control Impleme-ntation Internal Environ-ment SWOT Analysis Strategic Planning Process For Business Unit Mission Statement: * Defining basic purpose or * Reason behind the existence of an Business Peters Druckers classic questions * What is our business * Who is the customer * What is value to the customer * What will our business be * What should our business be Goals Formulation: Every business unit set their own target goals. The targeted goals must be SMART (specific, measureable, achievable, realistic and time band). For setting the goals, a manager must consider the capabilities of the business unit and after that set the goals. SWOT Analysis: SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. For setting the rational goals, every Business unit must analyze the environment, internally; Strength and weaknesses, and externally; opportunities and threats. Assessing the External Environment External scan refers to exploring the environment outside the organisation in order to identify the opportunities...
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...ABSTRACT Knowledge Management (KM) is the key factor for the organizational success and survival. In the competitive business environments, knowledge management involve strategic management processes. The processes consist of formulating stages, implementation stages, and controlling stages. With a systematic strategic management approach, organizations are able to generate competitive advantage and achieve organizational objectives. This paper provides an approach for organization to manage KM through strategic management process. KM currently is a discipline which is growing very fast. Therefore to support business viability and competitiveness, organization needs to integrate fragmented landscape of KM with strategic management process. Keywords: Knowledge Management, Strategic Management. 1.0 INTRODUCTION According to Webb (1998), KM is the process of identification, optimization and active management of intellectual assets to create value, increase productivity and gain and sustain competitive advantage. Meanwhile, Murray (1998) said KM is a strategy that turns an organization’s intellectual assets and the talents of its members to produce new productivity, value and increase competitiveness. Therefore, we can conclude that KM is a discipline, designed to provide strategy, process, and technology to increase organizational learning. A part from that, strategy is the major plan to be undertaken and allocating resources to organization (Cannon, 1968). Aaker (1984) also suggested...
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