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Unit 4: Planning and Controlling. Strategic Planning. Strategy. Strategy is a planned course of action undertaken to achieve the goals and objectives of an organization. A Strategic Plan is a coordinated and systematic direction for an organization. Essential to the success of a business.
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Unit 4: Planning and Controlling Strategic Planning
Strategy • Strategy is a planned course of action undertaken to achieve the goals and objectives of an organization. • A Strategic Plan is a coordinated and systematic direction for an organization. • Essential to the success of a business
Strategic Planning Process • (1) Identify Mission and Objectives • (2) Analyse Internal and External Environment • (3) Formulate Strategy • (4) Implement Strategy • (5) Evaluate Results and Control
Management Tools for Analysis • SWOT Analysis • Strength, Weakness, Opportunities, Threats
Levels of Strategic Planning • Many of today’s large corporations are conglomerates composed of several businesses or several product lines. • Large corporations have three levels of strategy: corporate, business, and functional.
Types of Strategic Plans • Growth, Retrenchment, and E-business strategies • Growth Strategy • Expanding current operations • Diversification – In other industries
Types of Strategic Plans • Retrenchment Strategy • Used in crisis • Correct weaknesses by changing practices • Restructuring and downsizing • E-business Strategy • Involves Internet technology to buy/sell