Strategy Management: 'Strategic Planning Management Strategy Management Term Paper

Strategy Management: 'Strategic Planning

Management

Strategy Management

'Strategic Planning"

The purpose of this work is to explain in a precise manner several elements that strategic planning is inclusive of and further to tell how the planner should properly perform a strengths and weaknesses through the SWOT model and determine the impact of the findings which is what is given consideration for planning. Further to distinguish this from long-range planning and financial-planning as well as to discuss the relationship between mission statements, planned change, and unplanned change with use of illustrations and finally having confirmed to conclude.

Strategic planning can be stated as the evaluation of the internal and external environment of the organization and deducing the necessary adjustments based on findings focused on the future goals. There are several "essential steps in the strategic planning process. The steps begin with what is termed:

The identification of the vision and mission of the organization is essential in the strategic planning process. The organization's vision and reason for existence as well as the goals that are in focus for achievement are identified as well as the performance objectives.

to identify the strengths, weaknesses and distinctive competencies in the organization the analysis of the external and internal environment must be performed. The environmental scan is performed through the "Five Forces Model and "SWOT" to analyze information about the organization's external environment (economic, social, demographic, political, legal, technological, and international factors) the industry as well as the internal organizational factors.

I. SWOT model Analysis

There exist three basic foundations or models that strategic planning was formed upon. Those are the "SWOT analysis that analyzes elements affecting the optimum future outcomes as well as the internal strengths and weaknesses and threat and opportunities of the outside or external environment of the organization. The findings identify the organizations distinctive competencies and key success factors. Then these findings are applied with consideration given to societal and company values which lead to evaluation in order to create or form the choice of strategy for the organization.

The objective of the SWOT is toward recommendation of strategies that ensure the external and internal alignment in the organization. (Andrews, et al. 1980, Christensen et al., 1982 in Mintzberg, p. 36-37; Hax & Majluf, 1996, p.27; CSUN strategic planning leadership retreat, April 1997; Hill & Jones, 1992, p. 14).

The 'SWOT analysis' is usually presented in the form as follows:

Table 1.0

Strengths

Opportunities

Weaknesses

Threats

II. Porter's Five Forces Model:

Michael E. Porter developed this model which is inclusive of "new competitors" entry into the industry; threat of potential "substitutes," the "buyers bargaining…