Chapter 4 Summary
1. Contrast formal with informal planning. Discuss why planning is beneficial.
a. Informal planning has nothing written down, no plan of action. There is little or no sharing of goals with others in the organization and informal planning lacks continuity. Formal planning has specific goals covering a period of time. Organizational leaders share their ideas and have specific action plans to achieve goals. Formal planning is connected with positive financial results. Doing a good job in planning and setting goals helps your organization succeed.
2. Describe in detail the six-step strategic management process.
b. Step 1-Identifying the Mission Statement i. Purpose of an organization ii. ID goals and strategies c. Step 2-External Analysis iii. Positive trends in external environmental factors, what’s going on iv. Negative trends, threats d. Step 3- Internal Analysis v. Resources-assets that are used to develop, make, and deliver vi. Capabilities- how organiztn is doing work vii. Core competencies- organiztn major value-creating capability and skills viii. Strengths-things they do well or any unique resources it has ix. Weaknesses- things they don’t do so well or don’t have x. SWOT-STRENGHTS WEAKNESSES OPPORTUNITIES THREATS e. Step 4- Formulating Strategies f. Step 5- Implementing Strategies g. Step 6-Evaluating Results xi. How effective are the strategies? xii. Did they help reach goals? xiii. Adjustments??
3. What is SWOT analysis and why is it important to managers?
h. A SWOT analysis is a combination of external and internal analyses. It is an analysis of the organizations strengths, weaknesses, opportunities, and threats. Managers are ready to formulate appropriate strategies that: xiv. Exploit and org. strengths and external opportunities
a. Informal planning has nothing written down, no plan of action. There is little or no sharing of goals with others in the organization and informal planning lacks continuity. Formal planning has specific goals covering a period of time. Organizational leaders share their ideas and have specific action plans to achieve goals. Formal planning is connected with positive financial results. Doing a good job in planning and setting goals helps your organization succeed.
2. Describe in detail the six-step strategic management process.
b. Step 1-Identifying the Mission Statement i. Purpose of an organization ii. ID goals and strategies c. Step 2-External Analysis iii. Positive trends in external environmental factors, what’s going on iv. Negative trends, threats d. Step 3- Internal Analysis v. Resources-assets that are used to develop, make, and deliver vi. Capabilities- how organiztn is doing work vii. Core competencies- organiztn major value-creating capability and skills viii. Strengths-things they do well or any unique resources it has ix. Weaknesses- things they don’t do so well or don’t have x. SWOT-STRENGHTS WEAKNESSES OPPORTUNITIES THREATS e. Step 4- Formulating Strategies f. Step 5- Implementing Strategies g. Step 6-Evaluating Results xi. How effective are the strategies? xii. Did they help reach goals? xiii. Adjustments??
3. What is SWOT analysis and why is it important to managers?
h. A SWOT analysis is a combination of external and internal analyses. It is an analysis of the organizations strengths, weaknesses, opportunities, and threats. Managers are ready to formulate appropriate strategies that: xiv. Exploit and org. strengths and external opportunities