Corporate strategy and business planning,presentation websites like glogster login,html5 presentation tool 2014 - Test Out

Strategic management reflects what a firm is doing to achieve its mission and vision as seen by its achievement of specific goals and objectives. If vision and mission are the heart and soul of planning (in the P-O-L-C framework), then strategy, particularly strategy formulation, would be the brain. DiversificationThe number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another. Whereas corporate strategy looks at an organization as a portfolio, business strategyThe set of strategic alternatives that an organization chooses from as it conducts business in a particular industry or market. SWOT analysisAn assessment of strengths, weaknesses, opportunities, and threats., which stands for strengths, weaknesses, opportunities, and threats, is a tool to help organizations understand internal strengths and weaknesses and external opportunities of the environment. Andrews’s original conception of the strategy model that preceded the SWOT asked four basic questions about a company and its environment: (1) What can we do?
A good starting point for strategizing is an assessment of what an organization does well and what it does less well. Disney’s marketing excellence has spread the tales of Captain Jack Sparrow across the globe.
Understanding of the external environment is also critical to understanding strategic management. Strategy formulation is an essential component of planning; it forms the bridge that enables the organization to progress from vision and mission to goals and objectives. In SWOT analysis, what are some of the tools you might use to understand the internal environment (identify strengths and weaknesses)? In SWOT analysis, what are some of the tools you might use to understand the external environment (identify opportunities and threats)? In the first case, the organisation may be multidivisional in nature to the extent that in principle or even in law, separate parts of the enterprise could operate as viable entities in their own right.These a€?group structuresa€™ may undertake strategic planning as group exercise where under the corporate level strategy, each separate subsidiary or division has its own strategic planning process and strategic plan. Note when we say business unit, it may also, among other designations, be known as strategic business unit strategy or divisional strategy. Remember that at the beginning we said that corporate-level strategies address the entire strategic scope of the enterprise. Business-level strategies are similar to corporate-strategies in that they focus on overall performance.
Strategies for an organization may be classified by the level of the organization responsible for the strategy.
One approach to corporate level strategy that clarifies the task is the "Parenting Advantage Model".
Goold, Campbell, and Alexander list four forms of parental value creation:Stand-alone influence a€“ each subsidiary is viewed as a separate profit centre. Return from Corporate Level Strategy to Definition of Strategic PlanningReturn from Corporate Level Strategy to Simply Strategic Planning Home page. You Are Secure!When you click the Donation Button, rest assured you will land on a page that is encrypted and secure. StratXtra provides updates on what is happening here at the website, and comment on current issues in strategic planning. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The strategic management processA comprehensive and ongoing management process aimed at formulating and implementing effective strategies; it is a way of approaching business opportunities and challenges such that the firm achieves its vision and mission.
Figure 5.3 "Strategizing in P-O-L-C" summarizes where strategy formulation (strategizing) and implementation fit in the planning and other components of P-O-L-C. The first, corporate strategyThe set of strategic alternatives that an organization chooses from as it manages its operations simultaneously across several industries and several markets., answers strategy questions related to “What business or businesses should we be in?” and “How does our business X help us compete in business Y, and vice versa?” Corporate strategy considers an organization to be a portfolio of businesses, resources, capabilities, or activities. SynergyThe interaction of two or more activities, creating a combined effect greater than the sum of their individual efforts.
SWOT was developed by Ken Andrews of Harvard Business School in the early 1970s.Andrews, K. In general, good strategies take advantage of strengths and minimize the disadvantages posed by any weaknesses. VRIO—which stands for Value, Rarity, Imitability, and Organization—is a framework that suggests that a capability, or a resource, such as a patent or a desirable location, is likely to yield a competitive advantage to an organization when it can be shown that it is valuable, rare, difficult to imitate, and supported by the organization. PESTELStands for the political, economic, social, technological, environmental, and legal dimensions of an organization’s external environment. In terms of the P-O-L-C framework, strategy formulation is the P (planning) and strategy implementation is realized by O-L-C. In these cases however, one of the most significant inputs to each divisionsa€™ strategic planning is the output of the corporate strategic planning.
Moreover, functional strategy may apply to cross-divisional or cross-functional processes, or major projects.

This is the "big picture" view of the organization and may include deciding in which product or service markets to compete and the geographic boundaries of the organizationsa€™ operations.For multi-divisional organizations or enterprises, how capital, staffing, and other resources are allocated is usually established at the corporate level. And where should it be in business?How should the organization allocate its resources its various existing lines of business or business units?What level of diversity should exist in the business as it moves into the future? As distinct from corporate-level strategy, however, they focus on just one instead of a range of businesses.
Corporate-level strategies concern top management and address strategic issues of facing the organization as a corporate whole.Business-level strategies deal with major business units or divisions of the corporate portfolio.
Your information is safe with PayPal, one of the largest payment processors on the Internet. We will focus primarily on the strategy formulation aspects of strategic management because implementation is essentially organizing, leading, and controlling P-O-L-C components.
Specifically, a strategy captures and communicates how vision and mission will be achieved and which goals and objectives show that the organization is on the right path to achieving them. For example, McDonald’s is well known for their golden arches, associated exclusively with their restaurants worldwide. Just as with a portfolio of stock, the purpose of diversification is to spread out risk and opportunities over a larger set of businesses. TOMS Shoes, for example, is known for its trendy footwear that helps others by donating a pair of shoes to a person in need for every pair of shoes sold. For example, an aging population could lead to opportunities in numerous industries that cater to that demographic. The value chain dissects the organization and then identifies areas of unique strength or weakness.
Where the value chain might suggest internal areas of strength, VRIO helps predict whether those strengths will give it a competitive advantage. Corporate strategy helps to answer questions about which businesses to compete in, while business strategy helps to answer questions about how to compete.
These outputs from corporate level strategy are usually in the form of performance targets for the divisions. Additionally, because market definition is usually the domain of corporate-level strategy, the responsibility for diversification, or the addition of new products or services to the existing offerings, also mostly comes within the responsibility of corporate-level strategy.
Are there other activities the enterprise should be in or are there current activities that should be targeted for stopped or sold off to others?What should be the nature of this diversity or how diversified should the organization be?
The corporate level strategy of a multi division operation is like a strategy for managing an investment portfolio.Business units are usually individual enterprise-like entities oriented toward a particular industry, product or service type, and or market. Business-level strategies are generally developed by upper and middle-level business unit managers, in negotiation on key targets with the top corporate managers, and are intended to help the organization achieve its corporate level strategy.Functional or business process strategies address issues usually faced by lower-level managers and deal with strategies for the major organizational functions such as marketing, finance, production, and research, which are considered important to achieving the business strategies and enabling the corporate-level strategy. McDonald’s also had a majority stake in Mexican food favorite Chipotle for several years as well.Carpenter, M. Some may be high growth, some slow growth or declining; some may perform worse during recessions, while others perform better. A neighborhood church, for instance, may want to serve existing members, build new membership, and, at the same time, raise surplus monies to help with outreach activities that fulfill their mission. Threats include factors beyond the firm’s control that could place the strategy, or the business, at risk.
For example, while other movie studios can copy Disney’s strategy by marketing their films, they are unlikely to successfully imitate the iconic status Disney has developed over years of marketing commitment and through association with their well-known theme parks. The PESTEL framework directs managers to collect information about, and analyze, each environmental dimension to identify the broad range of threats and opportunities facing the organization.
The best strategies are based on a thorough SWOT analysis—that is, a strategy that capitalizes on an organization’s strengths, weaknesses, opportunities, and threats. The subsidiary units cannot ignore them.The corporate business strategy may also set down a small number of other factors that the divisions, or strategic business units as they may sometimes be called. In addition, whether to compete head on with other companies or to selectively establish cooperative partnering arrangements, or a€?strategic alliancesa€™, is a decision for corporate-level strategy, while requiring ongoing input from business unit or divisional level managers. Should it diversify in similar product or service markets, or into completely different areas; becoming a more conglomerate entity.How should the firm be organized? Brands’ food outlets performs better because they have common ownership and can share valuable inputs into their businesses. Its strategy would answer questions surrounding the accomplishment of these key objectives. For example, Sketchers has launched BOBS Shoes with a similar style and mission to that of TOMS. Like opportunities, these are considered external because managers typically have no control over them, but may benefit from having plans to respond to these opportunities or threats.
For instance, Disney excels at developing and profiting from its branded products, such as Cinderella or Pirates of the Caribbean.

Industry analysis, in contrast, maps out the different relationships that the organization might have with suppliers, customers, and competitors. Business-level strategies look at the business unit strengths, weaknesses, opportunities, and threats; much like corporate-level strategies, except the emphasis in business-level strategies is on the specific product or service, not on the corporate level investment portfolio.
The idea is that the combination of certain businesses is stronger than they would be individually because they either do things more cheaply or of higher quality as a result of their coordination under a common owner.
Perhaps more than a coincidence, RLI was founded some 60 years earlier as Replacement Lens International (later changed to its abbreviation, RLI, in line with its broader insurance products offerings), with the primary business of providing insurance for replacement contact lenses.
In a for-profit company such as McDonald’s, business strategy would help keep existing customers, grow its business by moving into new markets and taking customers from competitors like Taco Bell and Burger King, and do all this at a profit level demanded by the stock market.
As is evidenced by the competitive dynamics of these two shoemakers, the hardest thing for an organization to do is to develop its competitive advantage into a sustainable competitive advantageA competitive advantage that will exist after all attempts at strategic imitation have ceased.
For example, the struggling world economy has posed challenges for countless firms within multiple industries. Whereas PESTEL provides you with a good sense of the broader macro-environment, industry analysis informs you about the organization’s competitive environment and the key industry-level factors that seem to influence performance. For example the subsidiaries of a multinational bank may be defined by the country in which they operate. How will these boundaries impact relationships among parts of the business, with suppliers, customers and other interest groups?
In this case the corporate business strategy would set profit targets for each country bank. How will the organizational functions such as product development, production, distribution finance, marketing, sales customer service, etc.
Corporate-level strategies attempt to deliver benefits to the primary beneficiaries, such as increasing the wealth of shareholders through profitability of the overall corporate portfolio, and business-level strategies are concerned with: matching their operations with the overall objectives of corporate-level strategy while simultaneouslynavigating the environment in which they are active in such a way that they are among the better performers in their industry. Related diversification occurs when a firm operates multiple businesses within the same industry.
An assessment of strengths and weaknesses occurs as a part of organizational analysis; that is, it is an audit of the company’s internal workings, which are relatively easier to control than outside factors. The corporate strategy would yield to the country banks as to the strategies they pursue in generating these profits. Examining opportunities and threats is a part of environmental analysis—the company must look outside of the organization to assess opportunities and threats over which it has lesser control.
The country level banks would have their own business unit level strategies.In the second case corporate level strategy is used to distinguish it from the many other plans and planning processes that get the term a€?strategica€™ in their names. The strategic management process is “the coordinated means by which an organization achieves its goals and objectives.”Carpenter, M. In contrast, unrelated diversification occurs when a firm engages in businesses in different industries that lack similarities between each other.
The word strategy has acquired a kind of aura that seems to make many people want to use it, regardless of how actually strategic the matter at hand is in relation to the overall performance of an organisation. Which will be carried out in-house, and which will be contracted out?Should the firm enter into cooperative, mutually beneficial relationships or alliances with others?
Warren Buffett’s company, Berkshire Hathaway, engages in various businesses with little similarities to each other, such as GEICO, Fruit of the Loom, Justin Brands, Burlington Northern, and See’s Candies.
If not, what impact might this have on future organizational performance?As these questions show, corporate strategies address the long-term direction for the organization as a whole. Corporate strategies deal with plans for the entire organization and change as the capabilities of the organization develop and as the environment of the organization changes.Top management has primary decision making responsibility in developing corporate strategies and these managers are directly responsible to providers of capital to the organization, whether shareholders, donors, members, and so on depending on the type of organization . Figure 5.5 "Corporate and Business Strategy" provides a graphic guide to this kind of planning.
The role of the governing board of is to ensure that top managers actually act to address these owner or primary beneficiary interests. Others have described strategy as the pattern of resource allocation choices and organizational arrangements that result from managerial decision making.Mintzberg, H.
Strategy implementationThe methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved.
The concept of strategy is relevant to all types of organizations, from large, public companies like GE, to not-for-profit organizations, to religious organizations, to political parties.

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