Signature Assignment: Environmental Scanning Ayisa Vargas MGT/495 March 6, 2017 Professor Lillie Hibbler-Britt A strategic management plan is an important factor that acts as a guideline to operational goal and objectives. The process involves scanning the environment, formulating the strategy taking into account the dynamics of the business climate, implement the techniques and finally controlling the strategies to ensure the organization achieves the desired goals and objectives (Roberts & Berg, 2012). However, the effectiveness of a strategic plan depends on the ability to understand forces influencing business operations and these forces can be internal or external. Analyze the competitive advantage of your selected …show more content…
Also, changes in trading policies in different economies have contributed difficult in expanding the business into other countries with different ideologies. External environment Political: These factors influence the expansion strategies of the company. For instance, changes in tax compliance affect the operations of the company since it has to stick to the new rules. Also, trade investments affect the company’s operations in different markets (Roberts & Berg, 2012). These changes influence the patronage of the customers affecting the company growth. Economical: The global financial crisis affects the buying behavior of the customers. As a result, it cannot expand its operations into new markets with an unstable economy (Roberts & Berg, 2012). Also, the economy affects the buying power of the customers because when there is an economic decline, they will have little disposable income to spend. Social: The changes in consumer tastes and preferences affect their buying behavior. On the other hand, socialization has created market opportunity people love to drink and eat outside their homes as they socialize with others (Rumelt, 2011). Most importantly, population growth has created a market for the products and services. Technology: The changes in global technology have created an avenue for the company to sell its products globally (Rumelt, 2011). For instance, it uses e-commerce to build awareness of its products
A strategic plan is a tool that delivers guidance in achieving a mission or goal with maximum proficiency and control for an organization. Strategic planning is used to transform and revitalize organizations. The plan helps provide an inclusive understanding of opportunities and challenges both internally and externally for the organization. The plan delivers an assessment of the strengths and limitations that are realistic within the company. A well-developed strategic plan will offer a comprehensive approach and empowerment for the stakeholders involved. It is an opportunity for learning and understanding priorities that will drive the business to succeed. Jones (2010), describes how in health care organizations, strategic plans
There are two types of social factors that can affect a business; there is external affects and internal affects. Internal affects are about demographics and lifestyle whereas external is about social costs and benefits
"Strategic management is a set of managerial decisions and actions that determine the long-run performance of a corporation" (Wheelen & Hunger, 2006, p.3). The benefits of strategic management helps the firm focus on the objectives and develop the steps involved in obtaining the vision and financial wealth of the organization. An effective strategic management plan should include the following three questions: (1) Where is the organization now? (2) If no changes are
Strategic planning is designed to leverage the strengths of a firm while minimizing the effects of its weaknesses. It is difficult to know the potential advantage a firm may have unless external analysis is done well. For example, a company may have a talented marketing department or an efficient production system. However, the organization cannot determine whether these internal characteristics are sources of competitive advantage until it knows something about how well the competitors stack up in these areas.
Strategic planning can dictate the success of any organization if properly planned as well as the failure of an organization if not implemented as planned. Strategic planning is all about making choices. It is a process designed to support leaders in being intentional about their goals and methods. Simply stated, strategic planning is a management tool, and like any management tool, it is used for one purpose only—to help an organization do a better job. This portion of the strategic plan will explain why an
Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities as well as emerging market conditions and opportunities. This process begins with a clear company mission statement. However, this is only a small piece of a dynamic and perpetual process. Other activities involved with strategic planning also include setting supporting organizational objectives, designing a sound product mix as well as coordinating functional strategies. Strategic planning works to set the groundwork for the rest of the subsidiary planning functions in the company.
Environmental analysis is largely strategic thinking and strategic planning and consists of understanding the issues in the external environment to determine the implications of those issues for the organization (Ginter,2013). Strategic management does not replace traditional management activities such as budgeting, planning, monitoring, marketing, reporting, and controlling. Rather, it integrates them into a broader context, taking into account the external environment, internal organizational capabilities, and your organization's overall purpose and direction. With having a strategic plan and someone to administer the plan, the organization can flow
Managing a strategic plan is about setting the underpinning aims of an organization, choosing the most appropriate goals and fulfilling them overtime (Masood et al., 1995). Furthermore, managing a strategic plan can be defined as the art of formulating, implementing and evaluating cross-functional decisions that helps as organization to achieve their objectives (Analoui & Karami, 2003, p. 5).
Strategic Planning is one of the most fundamental factors in the success of an organization. This research project will discuss the importance of strategic planning as well as the different components of strategic planning. Many organizations fail to accomplish their goals and tasks due to the lacking of strategic planning. In order for their businesses to be successful, organizations need to be well informed about how the strategic planning process works.
What Is Strategic Management a process for defining and addressing the management implications of an organization's strategic and operational plans? A long-term context for short-term activities. Strategic management is the analysis of the work done by the management of an organization on behalf of the owners. It gyrates around expressing the purposes of the organization and coming up with an appropriate mission and vision statement. Mission and vision statement together are used to help develop policies and plans to be used in long term and short term goals often categorized as projects or programs. It also involves the right resources of management to ensure that the business profit are maximized to grow the company. Strategic Competitiveness
According to literature, strategic planning is vital for strategic management. Burgelman (1994) points that strategic planning is a process which decides how, when and who is going to plan and how the results will be implemented. Drucker (1974) identified that the planning for an organization’s future that includes setting major overall objectives, the determination of basic approaches to be used in
Strategic planning is the process of gathering information from stakeholders, market players, professional entity, and government agency. The purpose of gathering information is formulating a realistic and a workable framework that any organization can implement and work with. Evaluation of information is a key aspect in determine the kind of plans that the organization wish to a chive over certain a period. Strategic planning ensures the implementation is, crafted well, and parties involved be acquitted with it. Developing a good Strategic plan helps a company to implement its missions and visions effectively, and helps the company to evaluate
Strategic planning clearly defines organisations’ objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track (Bradford et al, 2008). According to Robbins and Coulter (2005), the strategic management process model is given below:
Economic factors the main impact every product and service is inflation. When there is inflation it has a ripple effect on all products and services. As a result companies incur an increase in their cost of production, and that leads to an increase in retail and wholesale prices. This can decrease the consumer buying
Strategic planning is central to management study. It defines the long term direction for the company and all other business functions orbit around their established strategies. This article studies how a company formulates business-level strategies, optimize their competitive positioning and obtain a competitive advantage over their rivals.