MGM101H5 Lecture Notes - Lecture 7: Swot Analysis, Pest Analysis, Strategic Planning
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MGM101H5 Full Course Notes
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Document Summary
Planning, business strategy: the long term success of an organization is based on two fundamental principles, ability to create a strategic direction and market position (strategic plan, ability to execute the core tactical initiatives within the plan. Development of a business strategy means making decisions and determining direction in 6 key areas: The organization"s fundamental purpose or reason for existence. A forward-thinking statement that defines what a company wants to become and where it is going. Specific markets/market segments the business sees itself competing in. Review of current and potential new products / services. Allocation of business"s resources in support of its strategic decisions. Modifying infrastructure and systems to ensure success of the plan. Identifying the key objectives to be achieved and who is responsible for them. Strategic model: what do we need to do? (external, what can we do? (internal, what do we want to do? (management priority) Goal is to align these objectives and reduce strategic tensions.
