DEFINITION Organizational strategy is a dynamic long-term plan that maps the route towards the realization of a company’s goals and vision.” The Strategic Planning Process In today's highly competitive business environment, budget-oriented planning or forecast-based...
The Decision Stage Quantitative strategic planning matrix (QSPM) QSPM determines the relative attractiveness of various strategies based on key internal and external factors. The relative attractiveness of each strategy within a set of alternatives is computed by...
Mission The mission statement describes the company's business vision including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities. Mission Statement It is an enduring statement of purpose...
Objectives Objectives are the ends that states specifically how the goals shall be achieved. They are concrete and specific in contrast top goals, which are generalized. In this manner, objectives make the goals operational. While goals may be qualitative, objectives...
Goal versus Objective comparison chart Goal Objective Meaning The purpose toward which an endeavor is directed. Something that one's efforts or actions are intended to attain or accomplish; purpose; target. Example I want to achieve success in the field of genetic...
DEVELOPING STRATEGIES The various approaches applicable for development strategies are as follows: 1. Adaptive Approach 2. Intuition approach 3. Strategic Factor Approach 4. Entrepreneurial approach 5. Niche approach Adaptive Approach This approach is based on...
Need for Environment Analysis Primary influencers - Environmental analysis gives the strategic manager time to anticipate opportunities & to plan alternative responses to those opportunities. It also helps them to develop an early warning system to prevent threats...
Types of Environment The environment can be classified as an internal & external environment. The environment analysis includes the study of all these dimensions & their interplay as well as impact. INTERNAL ENVIRONMENT can be viewed from different dimensions...
Opportunities and Threats External opportunities provide an organization with a means to improve its performance and competitive advantage in a market environment. Some opportunities can be foreseen, such as being able to expand a franchise into a new city, while some...
Internal Analysis Understanding a business in depth is the goal of internal analysis. This analysis is based on the resources and capabilities of the firm. Resources: A good starting point to identify company resources is to look at tangible, intangible, and human...
In the realm of strategic management, understanding the Functional Areas Resource Development Matrix is crucial. This matrix helps identify an organization's strengths, weaknesses, opportunities, and threats (SWOT) across various functional areas. This guide aims to...
Explore the strengths and weaknesses within key functional areas in your organization – Marketing, Finance, Production, Personnel, and Organization. Learn to harness these insights for better strategic planning.
Stability Strategy Definition: The Stability Strategy is adopted when the organization attempts to maintain its current position and focuses only on the incremental improvement by merely changing one or more of its business operations in the perspective of customer...
Expanding a new venture can be a daunting task, but it can also be one of the most rewarding. However, it's important to have a solid strategy in place to ensure a successful expansion. In this blog, we'll discuss some of the key strategies and issues to consider when...
Retrenchment or Retreat Strategy: An enterprise may retreat or retrench from its present position to survive or improve its performance. Such a strategy may be adopted during a period of recession, tough competition, scarcity of resources, and re-organization of the...
Combination Strategy Definition: The Combination Strategy means making the use of other grand strategies (stability, expansion, or retrenchment) simultaneously. Simply, the combination of any grand strategy used by an organization in different businesses at the...
Forward Integration Forward integration is a business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution or supply of a company's products. This type of vertical integration is...
Backward Integration Backward integration is a form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In other words, backward integration is when a company buys another company that...
Horizontal Integration Horizontal integration is the process of acquiring or merging with competitors, leading to industry consolidation. Horizontal integration is a strategy where a company acquires, mergers, or takes over another company in the same industry value...
Market Penetration Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the...
Market Development Market development is a strategic step taken by a company to develop the existing market rather than looking for a new market. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to...
Product Development Product development strategy is the process of bringing new innovation to consumers from concept to testing through distribution. When existing business revenue platforms have plateaued, it is time to look at new growth strategies. New product...
Concentric Diversification a growth strategy in which a company seeks to grow and develop by adding new products to its existing product lines to attract new customers; also called convergent diversification. Concentric diversification occurs when a firm adds related...
Conglomerate diversification is a strategic move offering new growth avenues while mitigating risks and enhancing innovation. Explore the steps involved & impacts.
Horizontal Diversification Horizontal diversification involves the extension of the production of products or services above and beyond the industry, in which the company operates. Companies Introduce into the production of new products which are based on know-how,...
Joint Venture A strategic joint venture is a business agreement between two companies that make the active decision to work together, with a collective aim of achieving a specific set of goals and increase their respective bottom lines. Through this arrangement, the...
Retrenchment Strategy Retrenchment strategy is a practice done by organizations to gain a better financial position by lowering or reducing the costs of any of its business operations. 1. General strategy: Nowadays, retrenchment is the easiest way to see through the...
Divestiture A divestiture is the partial or full disposal of a business unit through sale, exchange, closure, or bankruptcy. A divestiture most commonly results from a management decision to cease operating a business unit because it is not part of core competency. A...
Learn all about Liquidation Strategy, its concept, types, examples, advantages, and disadvantages. Understand when and how it is used in business to pay off debts and dissolve the company.
Strategic Analysis & Choice The first step in evaluating and choosing a strategy is to review the results of the strategic situation assessment consisting of an analysis of the general, industry, and internal environments, in terms of factors critical to the...
Strategic Choice – Factors Affecting & Process Of Strategic Choice Strategic choice refers to the decision which determines the future strategy of a firm. It addresses the question “Where shall we go”. A SWOT analysis is conducted to examine the strengths and...
Internal Factor Evaluation Matrix IFE (Internal factor evaluation) matrix is one of the best strategic tools to perform internal audits of any firm. IFE uses for internal analysis of different functional areas of business such as finance, marketing, IT, operations,...
External factor evaluation matrix External Factor Evaluation (EFE) Matrix is a strategy tool used to examine the company’s external environment and to identify the available opportunities and threats. External Factor Evaluation (EFE) Matrix is a strategic analysis...
A Competitive Profile Matrix (CPM) can be used to compare one company to another across a range of factors critical to success, and is another strategic tool which can be useful in helping you define your strategy. The total score for a given company shows how competitive that company is in the marketplace relative to other companies.
TOWS Matrix The TOWS Matrix is derived from the SWOT Analysis model, which stands for the internal Strengths and Weaknesses of an organization and the external Opportunities and Threats that the business is confronted with. The acronym TOWS is a variant of this and...
Strategic position and action evaluation matrix (SPACE) Strategic Position and Action Evaluation Matrix (SPACE) is “an approach to hammer out an appropriate strategic posture for a firm and its individual business.” SPACE is an analysis of the following...
Boston Consultancy Group Matrix BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. It classifies the business portfolio into four categories based on industry...
The Internal-External(IE)matrix This matrix positions an organization’s various divisions in a nine-cell display. The matrix is similar to the BCG matrix in several respects. First, both tools involve plotting organizational divisions in a schematic diagram, this is...
The Grand Strategy Matrix This is based on two evaluative dimensions competitive position and market growth. Appropriate strategies for an organization to consider listed in order of attractiveness in each quadrant of the matrix. RAPID MARKET GROWTH Quadrant I 1. ...
Policies Policies are designed to guide the behavior of managers in relation to the pursuit and achievement of strategies and objectives. Policies are an instrument for strategy implementation. The term policy has various definitions in management literature. Some...
Personnel Policies Personnel Policies: Objectives, Principles, Sources, and Other Information! According to Dale Yoder, ‘policy is a pre-determined selected course— established as a guide towards accepted goals and objectives’. A personnel policy should have two types...
Financial Policies Financial policies may be regarded as the most important business policies of the organization. It depends on the entire success and failure of a business unit of the organization. Proper and careful framed financial policies help to the effective...
McKinsey 7 S Model McKinsey 7-S framework or model is one of those few models that have managed to persist even when others came in and went out of trend. It was developed by consultants working for McKinsey & Company in the 1980s and features seven steps or...
Explore the intricate dynamics of Leadership and Management Styles and their impact on the hospitality industry. This blog offers insights into various styles and their strategic implications, guiding hospitality students towards successful careers.
One way to explore leadership is in terms of the use of authority by the leader and the amount of freedom given to their direct reports. Clearly, as one increases the other will decrease and this will have a major impact on the way the leader leads. With this in mind,...
Review bases of Strategy Reviewing the underlying bases of an organization's strategy could be approached by developing a revised EFE Matrix and IFE Matrix. A revised IFE Matrix should focus on changes in the organization's management, marketing, finance/accounting,...
Measure Organisational Performance Another important strategy-evaluation activity is measuring organizational performance. This activity includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and...
The final strategy-evaluation activity, taking corrective actions, requires making changes to reposition a firm competitively for the future. Examples of changes that may be needed are altering an organization's structure, replacing one or more key individuals,...
ENVIRONMENTAL AND INTERNAL RESOURCE ANALYSIS Concept of environment Environment literally means the surroundings, external objects,influences or circumstances under which some one or some thing exists. The environment of any organization is “the aggregate of all...
Environmental Analysis and Internal Analysis Strategic analysis of any Commercial enterprise has two stages that include Internal and External analysis. Environmental analysis: An environmental analysis in strategic management has a vital role in businesses by...