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Strama

In: Business and Management

Submitted By airich
Words 744
Pages 3
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SWOT and Strategic Choice

Strengths and Weaknesses
Opportunities and Threats
(SWOT Analysis)

Strategic Choice
Business
Functional
Global
Corporate

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Why do some firms succeed while others fail? * A central objective of strategic management is to learn why this happens.
What is strategy? * An action a company takes to attain superior performance.
What is the strategic management process? * The process by which managers choose a set of strategies for the enterprise to pursue its vision.

Overview

Basic Strategic Planning Model

Rational planning by top management?

Strategic Planning

Implementation of Chosen Strategies

Selection of Appropriate Strategies

Internal Analysis of Strengths and Weaknesses

External Analysis of Opportunities and Threats

Defining the Mission and Setting Top-Level Goals

The Main Components of the Strategic Planning Process

FIGURE 1.1

Mission and Goals

Mission * Sets out why the organization exists and what it should be doing.
Major goals * Specify what the organization hopes to fulfill in the medium to long term.
Secondary goals * Are objectives to be attained that lead to superior performance.

Identify strategic opportunities and threats in the operating environment. 1. immediate (industry) 2. macroeconomics 3. national

External Analysis

political/legal forces

owners/board of directors managers employees

economic forces technological forces

socio-cultural forces competitors

customers

financial intermediaries local communities

activists

unions…...

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