Strategic Plan

Strategic Management

Selena Samuel

MGT/401

April 23, 2012

Barbara Daniel

Strategic Management

The outline of the paper will explicate steps of strategic management process as it relates to Pre’Fa Resale Shop. According to Katz, and Green (2009), the first stage involves the prestrategy decisions. The second stage considers benefits the business would offer their consumers, which this information is tied to a SWOTT (strength, weakness, opportunity, and threat) analysis. The third stage is where the business chooses a strategy. The final stage is where business work to ensure the firm’s competitive advantage, using a VRIO (value, rareness, limitability, organization) analysis (p. 172).

Prestrategy

In the first stage Pre’Fa Resale Shop will have to decide on the goods or service the business intends to provide and the intended market. Pre’ Fa Resale Shop will have to decide on how much to sell and the areas the business would decide to cover. Pre’Fa Resale Shop will have to decide on the industry name for the line of goods or services being sold. The success of a business is by deciding on the right industry. Pre’Fa Resale Shop will also have to know their market inside out.

Benefits

The second stage of strategic planning is benefits. A key decision Pre’Fa Resale Shop will have to decide on is what benefits the business plans to offer their consumers. Benefits are considered to be characteristics of good or service which target consumers. There are two factors in which Pre’Fa Resale Shop will have to consider. The first one is the value benefits. Value benefits includes altruism, belonging, reputation, place, brand, assurance, personalization, ease of shopping, service, delivery, technology, style, and quality. The second one is the cost benefits. According to Katz, and Green (2009),” Cost benefits come from lower cost, from saving brought on by scale or scope, or from greater efficiencies resulting from throughout learning or superior...