A few common examples of strategic planning tools include:
- SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
- OKR (Objectives and Key Results)
- PEST (political, economic, socio-cultural, and technological) analysis
- Balanced scorecard
Full Answer
What are the tools and techniques of Strategic Management?
1 TOOLS AND TECHNIQUES OF STRATEGIC MANAGEMENT 1. CRITICAL QUESTION ANALYSIS 2. ... 2 Critical Question Analysis Formulating appropriate organizational strategy is a process of critical question analysis. ... 3 Contd.. ... 4 SWOT Analysis o A useful technique for analyzing a firm's position in the market. ... 5 Contd ... More items...
What is strategic option and choice techniques?
Strategic option and choice techniques Strategic options generation is the process of establishing a choice of possible future strategies.Strategic choice is a key step within the strategic planning process.It involves in Generation of strategic options,
What are the 4 strategic planning tools for 2021?
4 Strategic Planning Tools and Models for 2021 and Beyond 1 SWOT analysis. How does it work? ... 2 Objectives and Key Results. How does it work: Famously used for strategic planning by Google, Microsoft, and Intel, OKRs work by establishing a clearly defined goal (the objective) along ... 3 PEST analysis. ... 4 Balanced scorecard. ...
What is the purpose of Strategic Analysis and choice?
Strategy analysis and choice seeks to determine alternative courses of action that could best enable the firm to achieve its mission and objectives. The firm’s present strategies, objectives, and mission together with the external and internal audit information, provide a basis for generating and evaluating feasible alternative strategies.
What is strategy analysis and choice?
What is alternative strategy?
Why does Hofer criticize the BCG matrix?
How does WO strategy work?
Why is evaluation important in decision making?
How does time affect strategic decision making?
How can a product be moved towards the leadership box?
See 2 more
8 Tools & Techniques To Apply To Strategic Analysis & Planning - LinkedIn
There are many definitions, tools, and techniques that can be applied to strategy analysis. If you do an internet search you will find all sorts of options available.
Strategic Analysis and Choice - theintactone
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 success of the business. George Steiner stated that three types of data are required to perform a situation…
Strategic Management :: Strategy Analysis And Choice
Strategy Analysis And 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 success of the business.
Strategic Choice: Factors Affecting & Process of ... - CommerceMates
Strategic choice simply refers to the strategy chosen out of available alternatives for attaining organizational objectives. It is termed as the most appropriate one that is selected after analysis of various facts by experts.
What is strategy analysis?
It is best to simply say that strategy analysis is an approach to facilitating, researching, analyzing, and mapping an organization’s abilities to achieve a future envisioned state based on present reality and often with consideration of the organization's processes, technologies, business development and people capabilities.
What is the standard cycle?
The standard cycle is chaotic, reactive, proactive, service, and value. If you were looking at processes in a department, you would look to see where that process is on the continuum. Then you would determine where you need to be and what it would take to get to that point of maturity. This is a simple explanation.
What are Porter's Five Forces?
Porter’s Five Forces: This tool helps you understand where your business power lies in terms of present competitiveness and future positioning strength. It forces you to analyze the bargaining power of suppliers and customers, the threats to new entrants and substitutes, and competitive rivalry in your marketplace. Using this tool helps you understand the balance of power and to identify areas of potential profitability. According to Porter, this model should be used at the line of business level.
Why is root cause analysis important?
Root Cause Analysis: This is important, as there are times in the strategy analysis process you need to dig deeper into a problem. This is where RCA is used. The key is that you need to identify and specify the problem correctly, analyze the root cause using a systematic approach, verify the causes, and determine the corrective actions. Implementation of the corrective action is extremely important.
What is preparation for planning?
Preparation for planning through the identification and review of information relevant for strategy analysis
Can you use a tool checklist in a blog?
In a short blog, there is no way to mention them all. But you could create a tool checklist that you could use in your next planning and analysis engagement to help you and your team define the present, future, risk and change state that you need to succeed.
What is strategy analysis?
It is best to simply say that strategy analysis is an approach to facilitating, researching, analyzing, and mapping an organization’s abilities to achieve a future envisioned state based on present reality and often with consideration of the organization’s processes, technologies, business development and people capabilities.
What is the standard cycle?
The standard cycle is chaotic, reactive, proactive, service, and value. If you were looking at processes in a department, you would look to see where that process is on the continuum. Then you would determine where you need to be and what it would take to get to that point of maturity. This is a simple explanation.
What are Porter's Five Forces?
Porter’s Five Forces: This tool helps you understand where your business power lies in terms of present competitiveness and future positioning strength. It forces you to analyze the bargaining power of suppliers and customers, the threats to new entrants and substitutes, and competitive rivalry in your marketplace. Using this tool helps you understand the balance of power and to identify areas of potential profitability. According to Porter, this model should be used at the line of business level.
What is preparation for planning?
Preparation for planning through the identification and review of information relevant for strategy analysis
Why is root cause analysis important?
Root Cause Analysis: This is important, as there are times in the strategy analysis process you need to dig deeper into a problem. This is where RCA is used. The key is that you need to identify and specify the problem correctly, analyze the root cause using a systematic approach, verify the causes, and determine the corrective actions. Implementation of the corrective action is extremely important.
What is strategic choice?
Strategic Choice involves a whole process through which a decision is taken to choose a particular option from various alternatives. There can be various methods through which the final choice can be selected upon. Managers and decision makers keep both the external and internal environment in mind before narrowing it down to one.
How many categories are there in management dictionary?
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.
What is the initial process of identifying a problem?
The initial process involves identifying the problem completely. Once, we have the clear picture of the problem in hand, and then the process of short listing various solutions is undertaken. Then comes up the strategic choice process where decision for final choice is taken considering the various parameters in mind.
What is a contd strategy?
Contd.. Strategy as a Plan – Strategy is developed consciously and purposely for a future situation. Strategy as a Ploy - Mintzberg says that getting the better of competitors, by plotting to disrupt, dissuade, discourage, or otherwise influence them, can be part of a strategy.
What is SWOT analysis?
4. SWOT Analysis o A useful technique for analyzing a firm's position in the market. o Considers the firm's internal strengths and weaknesses against external opportunities and threats. o This can allow a firm to exploit opportunities using its strengths, while at the same time improving upon its weaknesses in order to avoid external threats.
Abstract
In the field of strategic management, the researches carried out about strategic planning tools and techniques used by business managers in Turkey is almost negligible. However, in the other countries, the researches revealing the similarities and differences in use of strategic tools and techniques in various countries are often carried out.
Keywords
Procedia - Social and Behavioral Sciences 99 ( 2013 ) 1016 – 1025 1877-0428 © 2013 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility of the International Strategic Management Conference.
What are strategic planning tools?
Strategic planning tools are techniques and models that business leaders use to determine where their business is at present, where they want it to be in the future, and which key metrics and initiatives they should track and pursue to achieve that target state.
What type of businesses should use SWOT analysis?
These businesses might include startups and solopreneur operations.
How does SWOT analysis work?
How does it work? In SWOT analysis, strategic planning teams brainstorm to come up with several strengths, weaknesses, opportunities, and threats for their business, then list those items in four quadrants.
What is SWOT analysis?
The great thing about SWOT analysis is that it can be used for annual strategic planning, or everyday decision making. Adapt SWOT analysis to a rapidly evolving market by using it at the individual project level. For example, say your office cleaning service was considering expanding just before COVID-19.
Why is the PEST analysis so complex?
PEST analysis is somewhat complex, due to the breadth and depth of the factors it accounts for. On one hand, this necessitates an experienced strategic planning team to effectively use PEST analysis. On the other hand, this makes PEST adaptable for changing conditions. Think of each of the factors that make up PEST as levers.
How much time is wasted in strategic planning?
Gartner research has found that executives believe more than half of their time spent in strategic planning is wasted, and the quality of those plans fail to meet expectations.
What type of business should use a balanced scorecard?
What type of businesses should use this? The balanced scorecard is open-ended enough to be used by almost any type of business, including automotive, financial, healthcare, manufacturing, technology, education, and almost anything in between.
What is strategic option?
Unit-5 Strategic option and choice techniques Strategic options generation is the process of establishing a choice of possible future strategies.Strategic choice is a key step within the strategic planning process.It involves in Generation of strategic options, e.g. growth, acquisition, diversification or concentration, Evaluation of the options to assess their relative merits and feasibility.,Selection of the strategy or option that the organisation will pursue. There could be more than one strategy chosen but there is a chance of an inherent danger or disadvantage to any choice made. Although there are techniques for evaluating specific options, the selection is often subjective and likely to be influenced by the values of managers and other groups with an interest in the organisation. In addition to deciding the scope and direction of an organisation,choices also need to be made about how to achieve the goal. Five main qualitative areas should be examined when considering strategic options:consistency, validity, feasibility, business risk and flexibility.
Who developed the five generic strategies?
Porters five generic strategies (way of competing) • These strategies were first set out by Michael Porter in 1985 in his book, "Competitive Advantage: Creating and Sustaining Superior Performance.".
Is selection subjective?
Although there are techniques for evaluating specific options, the selection is often subjective and likely to be influenced by the values of managers and other groups with an interest in the organisation.
What is strategy analysis and choice?
Strategy analysis and choice focuses on generating and evaluating alternative strategies, as well as on selecting strategies to pursue. Strategy analysis and choice seeks to determine alternative courses of action that could best enable the firm to achieve its mission and objectives.
What is alternative strategy?
The alternative strategies represent incremental steps that move the firm from its current position to a desired future state. Alternative strategies are derived from the firm’s vision, mission, objectives, external audit, and internal audit and are consistent with past strategies that have worked well.
Why does Hofer criticize the BCG matrix?
Hofer criticizes the BCG matrix because it inadequately represents new businesses in new industries that are just starting to grow. Hofer offers an extension of BCG analysis that remedies that inadequacy. Hofer analyzed businesses in terms of their competitive position and stage of product-market evolution.
How does WO strategy work?
WO strategies focus at improving internal weaknesses by taking advantage of external opportunities. Sometimes a firm may have key external opportunities but it may have internal weaknesses that can prevent it from exploiting them.
Why is evaluation important in decision making?
‘Evaluation methods are therefore central to the decision-making process and are expected to provide quantified ‘answers’ regarding the relative merits of various options and to indicate the ‘right’ course of action’. Sometimes objectives need to be adjusted to the strategy. It is essential for the strategist to assess that the strategic options fit specified objectives of the organization.
How does time affect strategic decision making?
The timing of decisions and time pressures affect the strategic decision process and the quality of the decision. The deadlines for making a strategic choice is often set not by the manager but by others. Sometimes, the strategist must make decisions in time frames set by other. In other cases, the strategist has more time to seek alternatives and choose among.
How can a product be moved towards the leadership box?
The implication is that the product can be moved towards the leadership box by judicious application of resource. In these circumstances the company should certainly consider making available resources in excess of what the product can generate.
