1. An explanation of what is meant by strategic terminology
Strategic terminologies are words or phrases which allow an organisation to achieve and review its desired position within its own structure and the external world, they help the organisation to create an action plan based on the company’s ethos and the stakeholder’s expectations. Once a business has chosen a direction, biased on its corporate business and operational strategies, it can create a mission statement, vision goals and objectives to push the organisation in a certain direction to achieve its desired position. Before creating these points the organisation must consider the social economical and environmental repercussions along with the desires of the main stakeholders. The mission statement will state the organisations intent and the vision will show aspirations for the future. Goals are statements on how to achieve the vision and the objectives allow the goals to be measured and quantified. Once the goals are set the organisation will review its competencies to identify its strengths so it can create a strategy to achieve its goals. Finally controls must be put in place so that the system can be monitored and reviewed. This is a constantly developing process that will need reviewed and adapted on a regular basis.
2. An explanation of three different planning techniques used in business
SWOT-(Strengths, Weakness, Opportunities, Threats)
In this technique managers analyse strengths and weaknesses and make quantative judgements based on performance and assessments of customer satisfaction on key issues such as employee motivation, workflow and processes. Planners appraise the external environment depending on potential opportunities and threats. To do this they look at technology economic potential and social factors as well as their competitors to see how this will impact the organisations goals. (e.g. the price of oil can not only stunt the growth of a business but could threaten its ability to exist)The next part of the process is to create a list of alternative corporate strategies to make a blue print for a final corporate plan. These strategies are created looking at actions and objectives that need done and what resources are required to achieve the mission statement. Moreover these strategies will give the operation a direction over the next year or so and will relate to the company plan. These are not long term goals that will change in a constantly moving market place. Targets will be issued to departments or divisions in various forms such as budgets, direct and indirect costs and profits. This system requires constant review and adaptation.
Case study Skoda 1990
Skoda was looking for a strong foreign partner to increase their market strength. They applied the SWOT analysis and using data gathered through internal and external market research they assessed their own market position. They passed this info to their network of financial dealers to increase their own brand.
MOST- (Mission, Objectives, Strategies, Tactics)
MOST analysis is a tool for analysing the internal functions of a company it requires the organisation to take a holistic, deductive management approach to analyse the internal workings of the organisation. Alternatively management can use an inductive approach to identify why a system is failing.
STEER-(Social, Technological, Economic, Ecological, Industrial Regulations)
STEER analysis is to review external factors that can affect an organisation. STEER was derived from an older model called PEST but it has been adapted to include more factors that can affect an organisation in the modern world. This method of analysis also depends on the products and services that a company provides, which country the company is in for shipping and political factors and the scale of the review within the organisation.
3. An analysis of two approaches to strategy evaluation and selection
Strategy evaluation is to gain a clear understanding of the