MGM101H5 Lecture Notes - Lecture 7: Strategic Planning, Pest Analysis, Swot Analysis
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MGM101H5 Full Course Notes
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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 core tactical initiatives within plan. If there is no plan, it is hard to know who you are, how resources should be allocated. Mature firms will spend more time in analysis/ monitoring changes. Customized for each business given market conditions and desired goals. Understanding what opportunities exist in market place and which to pursue. Development of a business strategy means making decisions and determining direction in 6 key areas: purpose. Mission: organization"s purpose/reason for existence; company"s broad goals. Vision: a forward-thinking statement that defines what a company wants to become and where it"s going: markets. Harvesting: a strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability potential. Value proposition is different in different markets: products & services.