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What is strategic planning?
Strategic planning is developing detailed business strategies, putting them into practice, and analyzing the outcomes of a company’s long-term goals.
Strategic management assists in creating a strategic vision.
True
Which of the following is NOT a step in the strategic planning process?
What is the purpose of conducting a SWOT analysis?
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The three important steps of strategic planning are Strategy Formulation, Strategy __________, and Strategy Evaluation.
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What does strategy formulation involve?
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Study Notes
Strategic Planning
- Strategic planning involves developing business strategies, implementing them, and analyzing the outcomes to achieve long-term goals.
- It aims to combine a business's marketing, financial, and human resources to achieve strategic goals.
Strategic Management
- Strategic management focuses on maintaining a competitive advantage and controlling the market.
- It involves evaluating, guiding, and adapting strategies to changing business environments.
- It encompasses creating a strategic vision, defining goals, setting direction, and implementing strategies aligned with the organization's objectives.
Strategic Planning Process
- The strategic planning process consists of three main steps: strategy formulation, implementation, and evaluation.
Strategy Formulation
- This involves determining strategic objectives derived from the company's mission and vision statements.
- Strategic objectives are specific performance targets that define how the company's mission will be achieved.
- Examples of objectives include expanding delivery services by 25% within a year or increasing production by 50%.
- Before developing a strategy, a company conducts internal and external audits to assess its current situation and identify opportunities, threats, strengths, and weaknesses (SWOT analysis).
- The SWOT analysis helps managers decide which plans or markets to focus on, allocate resources, and determine if expansion through mergers or joint ventures is necessary.
Strategy Implementation
- After formulating a strategy, the business allocates resources and establishes specific targets for implementation.
- Effective communication of the chosen strategy throughout the company and employee commitment are crucial for successful implementation.
- Strategy implementation involves building a solid structure, optimizing resource usage, and reorienting the organization's activities to support the chosen strategy.
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Description
This quiz covers the fundamentals of strategic planning and management, including the process, formulation of strategies, and the importance of aligning objectives with business goals. You will explore how organizations maintain a competitive advantage through strategic evaluation and implementation.
