∙ Determine the competitive position
∙ Implement the strategy
∙ Evaluate the performance
One Step: Analyze the external environment. To achieve the company’s objectives, managers must be aware of threats and opportunities in the external environment. By scanning and monitoring technology, laws and regulations, the economy, sociocultural factors, and changing demographics, managers can make reactive and proactive changes to the strategic plan.
97. Concepts of strategy are numerous. Describe two.
ANSWER: Strategy: A declaration of intent
Strategic intent: A tangible corporate goal; a point of view about the competitive positions a company hopes to build over a decade
Strategic planning: The systematic determination of goals and the plans to achieve them
Strategy formulation: The entire process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals
Strategy implementation: Those activities that employees and managers of an organization undertake to enact the strategic plan and achieve the performance goals
Objectives: The end, the goals
Plans: The product of strategy, the means to the end
Strategic plan: A written statement that outlines the future goals of an organization, including long-term performance goals
Policies: Broad guidelines to action that establish the parameters or rules
98. Are employees always an organization’s most valuable resource? Why or why not? What criteria is required for organizations to achieve competitive advantage through their human resources?
ANSWER: In order to determine whether an organization’s resources will contribute to competitive advantage, four criteria must be satisfied. The resources must be:
a. valuable
b. difficult to imitate
c. rare
d. hard to substitute
99. Refer to Scenario: Tentree Apparel. Tentree Apparel is an example of an organization that is making strategic decisions in its attempts to become profitable. Describe two concepts of strategy that Tentree Apparel is using.
ANSWER: A few concepts include:
Strategy: A declaration of intent
Strategic intent: A tangible corporate goal; a point of view about the competitive positions a company hopes to build over a decade
Strategic planning: The systematic determination of goals and the plans to achieve them
Strategy formulation: The entire process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals
Strategy implementation: Those activities that employees and managers of an organization undertake to enact the strategic plan and achieve the performance goals
Objectives: The end, the goals
Plans: The product of strategy, the means to the end
Strategic plan: A written statement that outlines the future goals of an organization, including long-term performance goals
Policies: Broad guidelines to action, which establish the parameters or rules