Strategic Planning and Organizational Structure

Posted on Nov 29, 2024 in Other subjects

Strategic Planning

Targets

Results selected and committed to by managers for long-term business growth (e.g., high-quality products and services, increased sales, reduced costs).

Strategies

Main courses of action implemented to achieve one or more goals. The key challenge is developing unique and efficient strategies for market competition.

Resource Allocation

Allocating money, personnel, facilities, equipment, buildings, and other resources to various business opportunities, projects, and tasks.

Strategic Planning Processes

Mission/Goals Development

Defining the business purpose, commitments, and desired outcomes. Overarching goals provide direction for decision-making (e.g., profitability, growth, long-term survival).

Threats and Opportunities Diagnosis

  • Threats of new entrants: Barriers to entry, high company profits.
  • Customer power: Negotiation power of customers.
  • Supplier power: Negotiation power of suppliers.
  • Substitute goods: Threat of substitute products.
  • Industry rivalry: Competition between existing firms.
  • Industry profile: Principal product lines, market segments, industry growth.
  • Regulatory policy: Analysis of relevant regulations.
  • Human resource analysis: Assessment of human resources.
  • Macroeconomic analysis: Economic factors affecting supply and demand.
  • Power plants: Recent innovations and new product areas.

Strengths/Weaknesses Diagnosis

  • Strengths: Competitive position, process innovation, human resource skills, technology infrastructure, financial resources, quality.
  • Weaknesses: Lack of employee commitment, slow decision-making, indifferent leaders.

Strategic Alternatives Generation

Evaluating major strategies based on environmental forces, organizational strengths and weaknesses, and the probability of contributing to the mission and goals.

Growth Strategies
  • Market Penetration: Growth in existing markets with existing products; increasing market share.
  • Market Development: New markets for current products.
  • Product Development: Developing new and improved products and services for existing markets.

Strategy Implementation

Ensuring new strategies are implemented effectively and efficiently. Managers and consultants are increasingly focused on implementation, which is crucial for success and requires commitment from all managers.

Strategic Control

Checking if goals are being met. A support system helps managers assess organizational progress, correct discrepancies, and includes budgeting for monitoring and controlling disbursements.

Organizational Structure

A team working towards a common goal, managing the efficient achievement of business objectives. The organizational structure enables effective employee work through:

  1. Assigning various tasks to human resources.
  2. Clearly defining employee responsibilities.
  3. Communicating expectations through rules, procedures, and performance standards.
  4. Establishing procedures for collecting and evaluating information to aid managerial decision-making and problem-solving.