GLOBAL STRATEGY

Global strategy



Global Strategy

Question 1

A simplified view of the strategic planning process is shown in figure. The internal and external analysis of the firm, along with a factory internal to the firm is strength and weakness. Environmental factors external to the form are opportunities and threats. Internal and external are the most important analyzes in the strategy process. The order is important. The strategic planning process is arguably the most significant function of organization boards and managers.

That process includes the following elements: evaluation of the current business model; development of a competitive strategy, the organization's vision and mission, and its strategic and tactical goals; compilation of the formal strategic plan; and establishment of measurement and reporting capabilities and a stakeholder communication plan. It is usually not necessary or desirable to attempt to complete the process in a single board meeting or strategic planning session. A structured, well-planned approach is more likely to result in a strategic plan that is optimal, effective, and likely to be used on an ongoing basis rather than being relegated to a shelf and forgotten until a crisis arises.

Brainstorming should be used throughout the strategic planning process to achieve optimal results. It is important to acknowledge and capture all ideas, not just those that are used immediately, because they may be valuable after refinement or at a future time.

The organization's strategic goals should be consistent with its mission and vision, and they should be shaped by the choice of overall strategy and business model. Strategic goals are typically developed with a 3- to 5-year time frame. For volatile organizations, a shorter time frame may initially be beneficial as long as the goals can realistically be realized within the specified periods.

The strategic goals should address current, major issues facing the organization. Goals that are too narrow do not warrant strategic planning; they should be translated into action items. Goals that are too broad may be difficult to address; they should be limited or subdivided. It is important to tackle only issues and opportunities that the organization can do something about and achieve, from a practical standpoint. A range of three to seven issues/opportunities, translated into high-level goals, is the optimal number that most organizations should undertake. It may be beneficial to have shorter term as well as longer term goals, understanding the timeframe implications associated with each type (Kevan, 2011, 128).

Question 2

Strategic planning in its purest form is deceptively simple and is broken down into the following areas: (1) getting organized, (2) situational analysis, (3) setting direction, (4) refinement and plan adoption, and (5) implementation (Barry, 2001). Bryson (2004, p. xii) defines it as a “disciplined effort to produce fundamental decisions and actions that shape and guide what an organization …is, what it does, and why it does it.”

There are noted benefits (the “whats” and “whys”) to strategic planning. One very important benefit is problem solving and refining results by maintaining focused momentum. Another significant benefit is committed communicative teamwork that influences circumstances to ...