Chapter 7: Strategic Planning Part 1 Flashcards Preview

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Flashcards in Chapter 7: Strategic Planning Part 1 Deck (11)
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1
Q

Strategic Planning

definition

A
  • Outlines a company’s direction and priorities
  • For management to make decisions about the allocation of resources and assets
  • Build commitment to the agreed upon goals and objectives
2
Q

Elements:

1. Situation Analysis

A
  • Internal and external environments are assessed

- Can be conducted using SWOT and PEST

3
Q

Elements:

2. Mission Statement

A
  • Communicate to all stakeholders the core purpose and values of the company
  • Could be in a form of vision statement or the statement of cooperate philosophy
4
Q

Elements:

3. Goals & Objectives

A
  • Goals are set for long term, while objectives are set for short and medium term
  • Objectives include the KPI business will use to measure progress towards the goals
  • The SMART process can be used to set goals
5
Q

Elements:

4. Strategies

A
  • Plan of actions to achieve objectives
  • Developed for operation, marketing, competition and expansion.
  • To guide the development of action plan: Detail what employees need to do in short term to implement the strategies and achieve the objectives.
6
Q

Elements:

5. Review

A
  • Issues are identified and plans are made for any corrective action
  • Occurs at the end of the timeline
7
Q

Key Features:

1) Mission and Objectives

A
  • Outline its purpose, what it wants to achieve and how it is different to its competitors
  • Use SMART process
8
Q

Key Features:

2) Environment Scan

A
  • A scan that researches and analyses the business environment
  • To identify and anticipate factors that affects a business’ growth and success
  • Internal and external environment is scanned for detecting early signs of opportunities and threats that may influence current and future plans
9
Q

Key Features:

3) Strategic Formulation

A
  • Aimed at improving business performance and profits through gaining competitive advantage to succeed in the market
10
Q

Key Features:

4) Strategic Implementation

A
  • Put strategic plans into action
  • Strategy is more likely to work if it builds on and aligns with existing systems and culture.
  • Everyone in the company must understand their role and responsibilities to achieve the overall goals.
11
Q

Key Features:

5) Evaluate and Control

A
  • To measure performance and review operations regularly, and make corrective actions to identified problems
  • Evaluate progress by comparing results to the planned targets and timeframes.