2. Definition
comprehensive and in-depth
comprehension of all aspects related
to a company's operations, goals,
competitive environment, and
long-term vision. It involves a holistic
analysis of both internal and external
factors that influence the company's
performance and decision-making
processes. understanding enables
an organization to make informed
choices, allocate resources
effectively, and develop plans and
initiatives that align with its mission
and strategic objectives.
Core Values
Monitoring and Adaptation
Mission and Vision
Business Objectives
Internal Factors
External Factors
Competitive Landscape
resource allocation
Performance Metrics
3. MIssion and Vission
The mission of a company
articulates its core purpose,
answering questions like "Why
do we exist?" It defines the
fundamental reason for the
company's existence, beyond
profit.
The vision statement outlines the
company's aspirational long-term
goals, painting a vivid picture of
what the company aims to
achieve in the future. It acts as a
guiding star for decision-making
and goal-setting.
Core values are the ethical principles and beliefs that
shape the company's culture. They serve as a moral
compass, guiding employees in their daily actions and
interactions.
These values often influence strategic decisions, as they
reflect the company's commitment to integrity,
responsibility, and other important principles.
4. Business
Objectives
Business objectives provide clarity
on what the company intends to
accomplish. They should be
specific, measurable, achievable,
relevant, and time-bound (SMART).
Objectives can range from financial
targets (e.g., revenue growth, profit
margins) to broader goals (e.g.,
expanding market share, entering
new markets).
5. Internal and External Factor
A SWOT analysis dives into internal
factors. Strengths and weaknesses
relate to the company's internal
capabilities and limitations.
Strengths might include a skilled
workforce, while weaknesses could
be outdated technology.
Identifying these factors helps in
leveraging strengths and addressing
weaknesses to gain a competitive
edge.
The PESTEL analysis evaluates
external factors that can influence
the company's operations. For
example, understanding political
factors involves assessing
government policies and regulations
that may impact the industry.
Environmental factors can include
sustainability trends, and
technological factors can involve
innovations that affect the industry
landscape.
Internal Factor External Factor
6. Competitive
Landscape
In analyzing the competitive landscape, it's
crucial to identify key competitors and
understand their strengths and weaknesses.
Furthermore, assessing your company's
competitive advantage, whether through cost
leadership, differentiation, or other strategies,
is pivotal in positioning your business
effectively.
7. Strategic Planning - resource allocation
Allocating resources involves
determining how to best allocate
financial, human, and other resources to
support strategic initiatives.
This process requires careful
consideration to ensure resources are
used efficiently and effectively.
Strategic planning involves setting clear,
actionable goals aligned with the
company's mission, vision, and values.
It encompasses choosing appropriate
strategies (e.g., growth, stability,
retrenchment) and outlining the steps to
achieve those goals.
Resource Allocation
Strategic Planning
8. Establishing KPIs enables the measurement of
progress towards strategic objectives. Metrics
might include revenue growth rates, customer
satisfaction scores, or market share percentages.
KPIs help in tracking performance and making
data-driven decisions.
Regularly monitoring the strategic plan allows a
company to adapt to changing circumstances. This
includes conducting periodic reviews, gathering
feedback, and being agile in response to
unexpected challenges or opportunities.
Effective monitoring and adaptation ensure the
company remains on course towards its strategic
objectives.
performance metrics:
Monitoring and Adaptation