This sub-task of the essay will address how strategy development processes and implications for the "learning organisation" concept in relation to strategy development are applied in China-based Haier Group (HG) (See the background information on HG in Appendix A). Strategy development processes reflect the ways in which strategy is either formally and consciously developed or emerges as part of a pattern of critical decisions over time (University of Southern Queensland 2009). This task looks at strategic planning which encapsulates the strategy development processes (Lynch 2003). In addition, strategic planning can also be viewed as an organisational learning process (Lynch 2003).
Intended strategy is an expression of desired strategic direction deliberately planned by managers (Johnson, Scholes & Whittington 2008, p.565). Strategic planning is formally/intentionally developed in HG by first carrying out an SWOT analysis. SWOT is an acronym for the internal resource strengths and weaknesses of an organisation and the external opportunities and threats to the organisation (Stapleton & Thomas 1998, p.332). A SWOT analysis summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development (Johnson, Scholes & Whittington 2008, p.148). Although this model is used, but HG starts strategic planning by first scanning its internal environment to identify internal resource strengths and weaknesses by examining factors such as top management, finance, R&D, purchasing, manufacturing and accounting. This is because HG management believes that internal strengths are the key to ensure long-term success. According to the
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