Chapter 3 The external assessment and internal assessment

Today this class is so happy...We were move to next chapter about internal and external assessments..Erm i think is so interesting for us to learn more about that..If you have an established business where the mission is established then, most often, the mission guides the vision statement and the rest of the strategic plan. Either way, you need to know your fundamental purpose: the mission, your current situation in terms of internal resources and capabilities (strengths and/or weaknesses) and external conditions (opportunities and/or threats), and where you want to go - the vision for the future.

What is INTERNAL ASSESSMENT????

 

All organizations have strengths and weaknesses in the functional areas of business.  No enterprise is equally strong or weak in all areas.  Internal strengths/weaknesses, coupled with external opportunities/threats and a clear statement of mission, provide the basis for establishing objectives and strategies.  Objectives and strategies are established with the intention of capitalizing upon internal strengths and overcoming weaknesses. 

 

And now for EXTERNAL ASSESSMENT....

There are several factors to assess in the external situation analysis:

• Markets (customers)
• Competition
• Technology
• Supplier markets
• Labor markets
• The economy
• The regulatory environment

This is external audit

#Gather competitive intelligence

#Assimilate information

#Evaluate

#Resulting in a list of the most

#Important key external factors

 

Porter developed his Five Forces analysis in reaction to the then-popular swot analysis. Porter's five forces is based on the Structure-Conduct-Performance paradigm in industrial organizational economics. It has been applied to a diverse range of problems, from helping businesses become more profitable to helping governments stabilize industries.

The nature and degree of competition in an industry hinge on five forces:
1) the threat of new entrants
2) the bargaining power of customers
3) the bargaining power of suppliers
4) the threat of substitute products pr services
5) the jockeying among current contestants.

Chapter 1 & 2

17/9/2013

CHAPTER 1  Course introduction...

Today the second week lecture subject of strategic management. Lecturer continue teach us the subject and enter to chapter one. In a nutshell, strategic management is the process in which an organization develops and implements plans that espouse the goals and objectives of that organization. The process of strategic management is a continuous one that changes as the organizational goals and objectives evolve. Small businesses engage in strategic management to ensure that they adapt to trends and external changes such as globalization. Several key concepts characterize strategic management and the development of organizational goals. There are several concept that i can share to all of us:

 1) Strategic management involves deciding what

is important for the long-range success of your

business and focusing on it.

2) Strategic management asks, “How should I

position my business to meet management and

business goals?”

3) A business strategy is a series of business deci-

sions that lead to achieving a business goal.

4) Strategic management involves the “big picture”

of your business.

5) Strategic management involves planning, analyz-

ing and implementing a business strategy.

That all overall for this chapter. So, now i will continue to next chapter. So let's ENJOY...:)

CHAPTER 2 The Nature Of Strategic Management

The conclusion of this chapter that I can share is  the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change. We also can learn about art and science of formulating, implementing, evaluating, cross functional decision an enable of organization to achieve its objectives.

As this definition implies, strategic management focuses on integrating management, marketing, finance or accounting, production or operations, research and development, and computer information systems to achieve organizational success.  Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation.  The purpose of strategic management is to exploit and create new and different opportunities for tomorrow, long-range planning, in contrast, tries to optimize for tomorrow the trends of today.   

       Formulating is develop mission and vision and also identify organization external and internal environment (SWOT) analysis. It also establish long term objectives and generate how to achieve vision and mission.

      Second, implementing. In the next step we also establish objectives, device policies, motivate employees, allocate resources so that formulate strategic can be executed.  And finally we need to evaluate.

Developing a vision statement is often considered the first step in strategic planning, preceding even development of a mission statement.

Mission statements are “enduring statements of purpose that distinguish one business from other similar firms.  A mission statement identifies the scope of a firm’s operations in product and market terms.” 

Okey..thats all..thanks for reading..;)...I will continue for next entry..See you again..keep smiling...