Podcast
Questions and Answers
Who should ideally be responsible for creating strategic plans for specific businesses?
Who should ideally be responsible for creating strategic plans for specific businesses?
- Senior management only
- Individuals intimately involved with the business (correct)
- External consultants
- Strategic planners with no business function involvement
What is a critical factor that can lead to the failure of strategic plans?
What is a critical factor that can lead to the failure of strategic plans?
- Identification of key metrics
- Long-term commitment from management
- Failure to communicate the plan effectively (correct)
- Flexibility in planning
What aspect is crucial for effective strategic planning aside from analytical skills?
What aspect is crucial for effective strategic planning aside from analytical skills?
- Detailed market analysis
- Critical thinking and creativity (correct)
- Strict adherence to previous plans
- Reliance on traditional methods
Which of these is listed as a major difficulty in strategic planning?
Which of these is listed as a major difficulty in strategic planning?
What tends to happen if strategic plans lack flexibility?
What tends to happen if strategic plans lack flexibility?
Which of the following is NOT a reason why strategic plans tend to fail?
Which of the following is NOT a reason why strategic plans tend to fail?
What role does external focus play in successful strategic planning?
What role does external focus play in successful strategic planning?
What is a common trait of individuals who fail to plan strategically?
What is a common trait of individuals who fail to plan strategically?
What is the primary purpose of strategic planning within a company?
What is the primary purpose of strategic planning within a company?
Which question does NOT relate to the strategic planning process?
Which question does NOT relate to the strategic planning process?
How does the mission statement impact strategic planning?
How does the mission statement impact strategic planning?
What aspect of business does strategic planning primarily focus on?
What aspect of business does strategic planning primarily focus on?
Which of the following is emphasized as a necessary resource for effective strategic planning?
Which of the following is emphasized as a necessary resource for effective strategic planning?
What is a key consideration when evaluating operational planning strategies in a company?
What is a key consideration when evaluating operational planning strategies in a company?
Supplier relationship management is crucial for strategic planning because it:
Supplier relationship management is crucial for strategic planning because it:
What should be considered when determining the company’s market coverage in strategic planning?
What should be considered when determining the company’s market coverage in strategic planning?
What is the primary purpose of a vision statement within a company?
What is the primary purpose of a vision statement within a company?
Which of the following is typically NOT considered a corporate value emphasized by companies?
Which of the following is typically NOT considered a corporate value emphasized by companies?
In the context of strategic planning, what question addresses the development and maintenance of technology?
In the context of strategic planning, what question addresses the development and maintenance of technology?
How can companies measure their operational planning strategies effectively?
How can companies measure their operational planning strategies effectively?
In terms of resource allocation efficiency, what is a key consideration for a company?
In terms of resource allocation efficiency, what is a key consideration for a company?
What role does supplier relationship management play in strategic planning?
What role does supplier relationship management play in strategic planning?
What is an essential aspect of innovation metrics in a company?
What is an essential aspect of innovation metrics in a company?
Which of the following best describes a mission statement?
Which of the following best describes a mission statement?
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Study Notes
Strategic Planning
- Strategic planning aligns company resources to achieve short and long-term goals.
- Resources include core competencies, know-how, technologies, skilled labor, and business relationships.
Questions Answered by Strategic Planning
- What is the company's mission, vision, and value system?
- What business should the company be in?
- Does the company need to change its product portfolio, market coverage, production system, or service capabilities?
- What specific goals should the company achieve, by when, with what investment, and by which core competencies?
- What business networks should the company establish via supplier alliances, co-marketing partnerships, production joint ventures, and other collaborations?
- Which new products should the company offer?
- What core technologies should the company maintain, develop, acquire, or utilize?
- How should the company manage relationships with customers, suppliers, competitors, and other stakeholders?
Strategic Management Terminology
- Mission statement: Defines the company's purpose, target market, and how it serves them.
- Vision Statement: Outlines aspirations for asset size, market position, business standing, and rankings.
- Value system: 5-6 specific corporate values the company emphasizes (quality, innovation, social responsibility, etc.)
Examples of Mission and Vision Statements
- Google:
- Mission: To organize the world's information and make it universally accessible and useful.
- Vision: "to provide access to the world's information in one click.“
- Tesla:
- Mission: To accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.
- Vision: To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.
Who Should Do The Planning?
- Planning is most effective when those intimately involved with the business and specific activities are entrusted with it.
Inexact Nature of Strategic Planning
- Strategic planning requires critical thinking, synthesis, intuition, creativity, and an understanding of the random process of strategy making.
Major Difficulties of Strategic Planning
- Predicting the future
- Applying experience and insight
- Random process of strategy making
Why Do Strategic Plans Fail?
- Not thinking strategically
- Failure to identify critical success factors
- Lack of both internal and external focus
- Lack of long-term commitment from management
- Reluctance of senior management to accept responsibility for tough decisions
- Not leaving enough flexibility in the plans
- Failure to properly communicate the plan and secure support and buy-in.
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