One of the essential parts of creating and running a small business is creating a mission or vision for the business and a set of goals the company aims to achieve. Strategic decision making, or strategic planning, describes the process of creating a company's mission and objectives and deciding upon the courses of action a company should pursue to achieve those goals. 2.what is meant by stratagic intent ?
To develop an effective strategy – you need to have strategic intent. Invariably – companies look at competition traditionally – i.e. focus on existing position & resources, rather than at the resourcefulness of competition and their pace at which they are building competencies. Accessing the current tactical advantages of known competitors will not help to understand the resolution, stamina and inventiveness of potential competitors.
Strategic intent envisions a desired leadership position and establishes the criterion the organization will chart its progress – it is simply something more than just unfettered ambition. It captures the essence of winning and is stable over time. It sets a target that requires personal effort and commitment and also a bit of luck – it is not a soft target. The important question that companies ask is not “How will next year be different?” – but they ask, “What must we do differently next year to get closer to our Strategic Intent?” Most companies look at change and innovation in isolation – i.e. try and keep a few people isolated and let them free – but real innovation comes from everywhere – top management role is to add value.
Strategic intent is clear about the ends, but flexible about the means – it leaves room for improvisation and creativity and the top management gives the direction. The difference is resource as a constraint versus resources as leverage. In both, it is implicit that there must be balance in the scope so as to reduce risk. In the first you do it through building a balanced portfolio of cash generating and cash consuming business, in the other you ensure a well balanced and sufficiently broad portfolio of advantages.
Strategic intent implies a sizeable stretch for an organization. Current capabilities and resources will not suffice. This will force inventiveness to make the most of existing resources. It will create a sense of urgency and force a competitor focus at all levels through widespread use of competitive intelligence. The companies will invest and train employees with the skills they need to work effectively. The management will keep on invoking challenges, but also not overwhelm the employees with unreasonable pressures and demands. They give the organization time to digest one challenge before launching another challenge. There are clear milestones, which are communicated without any ambiguity and also review mechanisms to monitor the milestones 3.SWOT Analysis
A SWOT analysis is a common strategic planning tool that managers can use to examine internal and external factors that may influence the ability to achieve goals. A SWOT analysis involves creating a list of a businesses strengths and weaknesses and the external threats and opportunities it faces. Identifying strengths, weaknesses, opportunities and threats can help managers create strategies to exploit strengths or minimize weaknesses to take advantage of opportunity and avoid threats.
4.What is meant by Organisational Appraisal?
The process of observe an organizational internal environment to identify the strengths and weaknesses that may influence the organization's ability to achieve goals. A firm can exploit its opportunities successfully, depending on its corporate strengths. It can be said that the corporate capabilities of the firm become the focal point for its performance and survival. They play a crucial role, both in identifying the strategy and its success. Corporate capabilities go beyond sales, profit and net worth. It is...