Business Strategy - Terminology, Planning Techniques and Tools

4219 Words May 28th, 2011 17 Pages
Business Strategy

Introduction

In this report I will be investigating what business strategy is all about, its context and terminology and the various issues involved in planning. I will look at the different techniques that can be used in strategic planning and will proceed to carry out an audit on my chosen business (Sega Corporation) using some of these techniques and analyse / evaluate my findings and offer any ideas or recommendations I might have.

“Planning means the deliberate and systemic determination of what to do in the future in order to fulfil the organisations mission and meet its objectives, given certain predicted or intended conditions” (Bennett, 1999) (1)

Strategic planning is a very important tool when it
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SWOT is the acronym for “Strengths, Weaknesses, Opportunities and Threats”. Strengths and weaknesses exist within the business itself and opportunities and threats are outside the business. Just a few examples of what could be strengths and weaknesses are; customer care, production efficiency, cash flow situation and suitability of premises. Possible opportunities could be; developing new products, mergers or exporting. Threats to the business could be; economic depression or stock market collapse. When preparing for a swot analysis it is a good idea for the firm to do a break down of the contributions of the company’s profits from each of the company’s divisions, products and other major activities followed by a look at the resources which are devoted to these. The advantage of a SWOT analysis is when weaknesses are identified the knowledge of them can enable a business to avoid future bad decisions even if past ones cannot be rectified. Adding to this also the company can build on the identified strengths and allocate resources more effectively. Important decisions regarding the feasibility of expansion or acquisitions can be made using facts rather than people’s opinions in meetings.

“The SWOT analysis presents a practical way of assimilating the internal and external information about the business unit, delineating short and long term priorities, and allowing an easy way to build the
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