Strategic Planing

a. What is a company’ s strategy?

A company’s strategy consists of competitive moves and businesses approaches management has developed to attract and please customers, conduct operations, grow the business, and achieve performance objectives. Thus a company’s strategy is all about the “how’s”: how to outcompete rivals, how to respond to changing economics and market conditions. How to take advantage of growth opportunities and all aspects of business action plans.

b. Do you think that a rational, step-by-step strategic planning process can inhibit strategic

thinking? Why or why not?

I think it won’t, the strategic planning process will not be successful if it is not integrated into the “business” or operational side of the organization. It is not a process that should be entered into with the expectation that it can be done quickly, and it must be open to change. External stakeholders or customers are an integral piece of the planning process, as they help identify or clarify objectives and goals. The step by step allows the company to view where they are at and what resistors they need to overcome without losing aim on the long term goal.

c. What are the three tests of a winning strategy?

They are questions raised to evaluate the process of the strategic planning and identify flaws in the plan.

Does the strategy fit the company’s situation?

To qualify as a winner, a strategy has to be well matched to the company’s external and internal situations. The strategy must fit competitive conditions in the industry and other aspects of the enterprise environment.

Has the strategy yielded a sustainable competitive advantage?

Strategies that fail to achieve durable competitive advantages over rivals are unlikely to produce superior performance for more than a brief period of time.

Has the strategy produced good financial performance?

Two kinds of performance improvements tell the most about the caliber of a company’s strategy: 1 gain in profitability...