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MGT603
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Individuals and organizations are alike in many ways. Each has competitors and each should plan for the future. Each and every organization faces opportunities and threats and has some internal strengths and weaknesses.
All these make it possible for the individuals and organizations to use and apply many strategic management concepts and tools.
You are required to select any firm operating in Pakistan from Telecom sector and visit that firm (if possible). After a thorough analysis of that firm, use the following strategic management concepts and tools to critically investigate the firm and prepare a 10-15 pages report of your findings and submit that research report on or before 15th January,
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Strategists themselves, not analytic tools, are always responsible and accountable for strategic decisions. Lenz emphasized that the shift from a words-oriented to a numbers-oriented planning process can give rise to a false sense of certainty; it can reduce dialogue, discussion, and argument as a means to explore understandings, test assumptions and foster organizational learning. Strategists, therefore, must be wary of this possibility and use analytical tools to facilitate, rather than diminish, communication. Without objective information and analysis, personal biases, politics, emotions, personalities, and halo error (the tendency to put too much weight on a single factor) unfortunately may play a dominant role in the strategy-formulation process.
Stage 1: The Input Stage
External Factor Evaluation (EFE) Matrix
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information. The EFE matrix consists of five steps process.
Five-Step process:
List key external factors (Opportunities & threats)
We have to prepare a list of all external factors which will affect the EFE matrix. These factors should be two points to be kept in mind these are opportunities and threats.
Assign weight to each (0 to 1.0)
Sum of all weights = 1.0, Now we have to arrange them according to their weight age that
All organizations will encounter strategic challenges over their duration of years in business. These challenges will come at all different levels across the company. Knowing that these challenges have happened in the past and will happen in the future, it is important to see how an organization will react to overcome the challenges.
External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.
This research paper will compare and contrast two organizations in the same industry. There will be analysis on the two organizations’ elements of business. This includes the basic legal, social, and economic environment, the managerial, operational, and financial issues impacting the organizations, and an analysis on the impact of potential change factors.
Identify elements of the external environment and internal resources of the firm to analyze before formulating a strategy.
LVMH has a wide range of consumers from different backgrounds. It is imperative that they are aware of religion, race, culture, and buying habits in every country. For instance, worldwide people are more dependent on the Internet, signifying that the methods of how people purchase goods are changing.
This could also work to the firm’s disadvantage, since gathered intelligence should never be considered static. New developments are always transpiring that render recently collected intelligence obsolete and invalid. The firm that fails to recognize this will have surely wasted its CI efforts.
These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.
Strategic Planning is one of the most fundamental factors in the success of an organization. This research project will discuss the importance of strategic planning as well as the different components of strategic planning. Many organizations fail to accomplish their goals and tasks due to the lacking of strategic planning. In order for their businesses to be successful, organizations need to be well informed about how the strategic planning process works.
The strategic management process is sometimes improperly perceived as a unidirectional flow of objectives, strategies and decision parameters from management to the employees. In fact, the process should be highly interactive since it is designed to stimulate input from creative, skilled and knowledgeable people working at every level of the business.
There will be 2 parts to external analysis; it will be done based on general environment and competitive environment. External analysis is basically analyzing the factors that are not within the control of an organization for the general environment part. As for the competitive environment part, the strength of an organization’s current competitive position, and the strength of a position it is considering moving into will be identified to help prepare itself for every possible happenings in the near future.
External environment is quite important for the any company, because it creates the conditions that the organization need to run the business in. In order to develop company strategy successfully, the external environment need to be analyzed properly. One of the best techniques to do that is Five Porter’s Forces analysis.
Q3) In terms of the external environment analysis, we will focus on three areas, namely, general environment, industry environment and competitor’s environment.
‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully. Strategy formation may take various forms such as implicit, explicit or emergent. Implicit strategy is a strategy formed by intuitions of an individual. As per implicit strategists, strategic management is about reading the environment
The External Factor Evaluation (EFE) matrix is a tool that helps management visualize and prioritize opportunities and threats that the business may
An organization’s survival depends on factors such as increasing their market share in the industry, eliminating competitors, increase bargaining power with customers, successful collaboration; etc. However, perhaps the best way to