Strategy Formulation The process of choosing among different strategies and

Strategy formulation the process of choosing among

This preview shows page 3 - 5 out of 14 pages.

Strategy Formulation: The process of choosing among different strategies and altering them to best fit the organization's need. Strategic Implementation: The implementation of strategic plan. Strategic Control: Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed. 6.4 Definitions Competitive Intelligence: Gaining information about one's competitors' activities so that one can anticipate their moves and react appropriately. Environmental Scanning : Careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans. SWOT Analysis: Also known as a situational analysis, the search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization: a) S-Strength (Inside Matters) b) W-Weakness (Inside Matters) c) O-Opportunities (Outside Matters) d) T-Threats (Outside Matters) Organizational Strengths : The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission. Organizational Weaknesses: The drawbacks that hinder an organization in executing strategies in pursuit of its mission. Organizational Opportunities: Environmental factors that the organization may exploit for competitive advantage. Organizational Threats: Environmental factors that hinder an organization's achieving a competitive advantage. Forecast: A vision or projection of the future. Trend Analysis: A hypothetical extension of a past series of events into the future. Contingency Planning: Also known as scenario planning and scenario analysis; the creation of alternative hypothetical but equally likely future condition. Scenario Analysis : Also known as scenario planning and contingency planning; the creation of alternative hypothetical but equally likely future conditions. Benchmarking: A process by which a company compares its performance with that of high-performing organizations
Image of page 3
Porter’s Model for Industry: Model proposes that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors. 6.5 Definitions Growth Strategy: One of three grand strategies, this strategy involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. Stability Strategy: One of three grand strategies, this strategy involves little or no significant change. Defensive Strategy: Also called retrenchment strategy, one of three grand strategies, this strategy involves reduction in the organization's efforts.
Image of page 4
Image of page 5

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture