Chapter 4:

Planning and Strategic Management:

*Situational analysis
-A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.

Alternative Goals and Plans:

*Plans
-The actions or means managers intend to use to achieve organizational goals.

*Contingency plans
-sets of actions to be taken when a company’s initial plans have not worked well or if events in the external environment require a sudden change.

Strategic Planning:

1.Where will we be active?
2.How will we get there?
3.How will we win in the marketplace?
4.How fast will we move and in what sequence will we make changes?
5.How will we obtain financial returns

Strategy Map:

Strategic Planning:
*Strategic management
-A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

Strategic Management Process:

Internal Resource Analysis:

Analysis of Internal Strength and Weaknesses:

*Benchmarking
-process of assessing how well one company’s basic functions and skills compare with those of another company or set of companies.
-goal of benchmarking is to thoroughly understand the “best practices” of other firms and to undertake actions to achieve both better performance and lower costs.

SWOT analysis and Strategy Formulation:

*SWOT analysis
-A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.

Summary of Corporate Strategies:

Strategy Implementation:
1.Define strategic risks
2.Assess organization capabilities
3.Develop an implementation agenda
4.Create an implementation plan

BCG Matrix: