Implementing a strategic plan The purpose of strategic planning The purpose of strategic planning is to set your overall goals for your business and to develop a plan to achieve them.
Financial objectives involve measures such as sales targets and earnings growth. Environmental Scan The environmental scan includes the following components: This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.
Strategy Formulation Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats. To attain superior profitability, the firm seeks to develop a competitive advantage over its rivals.
A competitive advantage can be based on cost or differentiation. Michael Porter identified three industry-independent generic strategies from which the firm can choose. Strategy Implementation The selected strategy is implemented by means of programs, budgets, and procedures.
The way in which the strategy is implemented can have a significant impact on whether it will be successful. In a large company, those who implement the strategy likely will be different people from those who formulated it.
For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected.
Evaluation and control consists of the following steps: Define parameters to be measured Define target values for those parameters Perform measurements Compare measured results to the pre-defined standard Make necessary changes Recommended Reading Bradford, Robert W.Encyclopedia of Business, 2nd ed.
Hair Salon Business Plan Business Plan: Business Plans - Volume The course is designed to provide students with insights into the complex environment that organizations of any size operate.
Organizational leaders’ and organizational members’ responsibility to use ethical thinking to balance stakeholder interests with organizational duty are examined. Strategy (from Greek στρατηγία stratēgia, "art of troop leader; office of general, command, generalship") is a high-level plan to achieve one or more goals under conditions of uncertainty.
In the sense of the "art of the general", which included several subsets of skills including "tactics", siegecraft, logistics etc., the term came into use in the 6th century AD in East Roman. Your first-ever Ten3 Business e-Coach: Porter's model outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related.
The model suggests that in order to develop effective organizational strategies, managers must understand and react to those external forces within an industry that determine . Strategy scholars have used the notion of the Business Model to refer to the ‘logic of the firm’ – how it operates and creates value for its stakeholders.
The Business Plan is the result of a strategic planning process by which the actions required to successfully create and develop a business are determined.