Professional Documents
Culture Documents
10.2
Implementation
Putting the formulated plan to work
Evaluation
Continuously evaluating and updating the strategic plan
Formulating Strategy
Developing the grand- and business-level strategies to be used by the company Companys strengths/weaknesses and threats/opportunities shape the strategies First step is to understand the current position of the company
Identify mission, identify past and present strategies, diagnose the companys past and present performance, set objectives for the companys operation
Formulating Strategy
Identify the mission statement
Outlines why the company exists Describes the companys basic products and/or services and defines markets and sources of revenue Designed to accomplish several goals and ensures a common purpose within the company
Setting Goals
Concise statements that provide direction employees and set standards for achieving the companys strategic plan Established in many areas (see handout) Goals must be reevaluated as the environment and opportunities change Multiple goals are used to reflect the desired performance
Rules detail specific and definite corporate actions that employees must follow
Leave little doubt about what is to be done no smoking in the conference room
SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
Process that allows companies to evaluate overall health
Internal (SW) and external (OT)
Most important result of a SWOT analysis is the ability to draw conclusions about the attractiveness of the companys situation and the need for strategic action
Implementing Strategy
Action stage of strategic management Managers determine and implement the most appropriate company structure, motivate employees, develop short-range goals, and establish functional strategies Strategy must fit with current company policies
Or conflicting policies must be changed
A. T. Cross Company