Components of A Strategic Plan Paper
Components of A Strategic Plan Paper
Construct a response to your fellow learner based on their Unit 6 Discussion Assignment essay. Your correspondence must meet the following criteria:
- Evaluate the Discussion Assignment essay written by two of your fellow learners posted on the Unit 6 Discussion Board. Create a written response (250 word minimum) debating the facts related to strategic planning.
- Identify the pro’s of your fellow learner’s assessment of strategic planning.
- Using a minimum of one peer-reviewed research resource in each answer response to build on the knowledge in your fellow learner’s essay.
- Identify the con’s of your fellow learner’s assessment of strategic planning.
- Using a minimum of one peer-reviewed research resource, explain the strategy concepts your fellow learner might have missed covering the topics of strategic planning in their essay.
FELLOW LEARNER ESSAY:
A strategic plan maps out where a company is headed, establishes strategic and financial targets, and outlines the competitive moves and approaches to be used in achieving the desired business results. A company’s strategic plan is formed in the first three stages of the strategic management process. These three stages include forming a strategic vision, which will define management’s objectives for the company’s future. A strategic plan also expresses the basic business model, and outlines the competitive moves and operating approaches to be taken to survive the industry conditions, competing against rivals, meeting objectives, and making progress along the chosen strategic course. A strategic plan also includes an assurance to allocate resources to carry out the plan and specifies a time period for achieving goals. (Thompson, Page 35)
Components of a Strategic Plan
Components of a strategic plan are a strategic vision, mission, objectives and strategy. A strategic vision is important because it describes management’s objectives for the company’s future and the course and direction projected to achieve them. A mission statement describes the originality for the company’s current business and purpose. The mission statement is important because it clearly states who the company is, what they do and why they are here. A company mission statement states the company’s products and/or services, specifies the buyer needs that the company pursues to fulfil and the markets that it serves, and gives the company its own identity. Setting objectives converts the vision and mission into detailed performance objectives. Objectives are important because they are a reflection of management’s objectives for company performance in light of the industry’s prevailing economic and competitive conditions and the company’s internal capabilities. “Well-stated objectives must be specific, quantifiable or measurable, and challenging and must contain a deadline for achievement” (Thompson, Page 26).
Single-business and Multi-business Companies
A single-business company focuses on business strategy and strengthens the market position, builds competitive advantage, and improves the performance of a single line of business unit. Key functional strategies for a single business company are finance strategy, human resource strategy, informational technology strategy, sales, marketing and distribution strategies, production strategy, supply chain management strategy, and R&D technology design strategy. Multi-business company focuses on corporate strategy establishing an overall game plan for managing a set of businesses in a diversified, multi-business company. Corporate strategy is composed by the CEO and other senior executives to establish an overall strategy for managing a set of businesses in an expanded, multi-business company. This helps improve the joint performance of the set of businesses the company has expanded into by capturing cross-business collaborations and turning them into competitive advantage.
International Marketplace
Changes in unpredictable and fundamental shifts in market demand can cause multinational corporations to rush to make adjustments too radically in order to gain and sustain competitive advantage. This isn’t very good because they will be facing a new geographical diversity. They face geographical risk diversification. Customer’s tastes for a particular product or service sometimes differ substantially from country to country. A great example of this is novelty ice cream flavors like eel, shark fin, and dried shrimp would be purchased more by East Asian customers than customers in the United States and in Europe. Cultural influences also impact consumer demand. Because of this, multinational companies have to decide whether or not and how much to customize their products or services in each country market to match local buyers’ tastes and preferences. Or whether to pursue a strategy of offering a mostly standardized product worldwide.
Executing a Strategic Plan
Executing a strategic plan is harder than planning it because the company will have to do to achieve the targeted financial and strategic performance it envisions in the plan. It is also difficult because the company will show whether it can meet or beat its strategic and financial performance targets and shows good progress in achieving management’s strategic vision.
Wittmann, R. G., & Reuter, M. P. (2008). Strategic Planning : How to Deliver Maximum Value Through Effective Business Strategy. Philadelphia: Kogan Page. Retrieved from https://search-ebscohost-com.libauth.purdueglobal.edu/login.aspx?direct=true&db=nlebk&AN=224382&site=eds-live
Tallman, S. B. (2007). A New Generation in International Strategic Management. Cheltenham, UK: Edward Elgar Publishing. Retrieved from https://search-ebscohost-com.libauth.purdueglobal.edu/login.aspx?direct=true&db=nlebk&AN=209986&site=eds-live
Thompson, A. Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. [Purdue University Global Bookshelf]. Retrieved from https://purdueuniversityglobal.vitalsource.com/#/b…
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