Please enable JavaScript.
Coggle requires JavaScript to display documents.
Strategic Planning ((Corporate-level - pertains to the organisation as a…
Strategic Planning
Corporate-level - pertains to the organisation as a whole and the combination of business units and product lines that make up the corporate entity.
Business-level - Pertains to each business unit or product line.Strategic decisions at this level concern amount of advertising, the extent of research and development, and new product development etc.
Diversification -refers to the number of diff goods or services a company produces and the number of different markets it serves
Functional-level - pertains to the major functional departments within the business unit. Involves all of the major functions, including finance, research & development, marketing and manufacturing
2. Diagnose Threats and Opportunities - Managers must look at the nature and intensity of competition in the industry using Poter's Five Competitive Forces
a) Rivalry among Existing Firms (Competitors) - Factors are -number of competitors rate of industry growth, price competitiom, advertising battles, new product introduction
d) Threats of New Entrants - New competitors can enter the same product or service market
BARRIER TO ENTRY are factors that make entering an industry relatively easy or difficult Eg. High start-up sum, specialised knowledge about an industry
c) Bargaining Power of Suppliers - supplier can exert power over businesses by threatening to raise price or reduce the quality of goodsHigh bargaining power when:
- small numbers of suppliers sell to a large number of buyers
- suppliers do not have to worry about substitute goods
b) Bargaining Power of Customers (Buyers) - the extent to which customers are able to force down prices, bargain for higher quality or more service at the same priceCustomers have high bargaining power when:
- customers can easily snitch from one seller to another
- small number of customers purchase large volumes
e) Threat of Substitute Products or Services - extent pf which businesses in other industries offer substitute products
-
-
-
3. Access Strengths and Weaknesses - enable managers to identify an organisationsdistinctive capabilities and competencies relative to its competitors. Eg HR skills, financial resources, technological capabilities
5. Develop Strategic Plan - Plan should specify the action to be taken to achieve the goals. Also addresses how the required technological, marketing, financial and human resources will be obtain, how manufacturing and research and development will be conducted
-
7. Correct and Assess Results- Planning must be accompanied by controls to ensure implementation of the plans and evaluation of their results. If the plans do not produce the desired results, managers should consider changing the mission, goals, strategies or the plans themselves.
8. Repeat Planning Process - it is imperative that management proceedsd to develop the tactical plan, implement, monitor and assess performance.
-
-