D073 WGU Lesson 4: Strategic DecisionMaking & Operational Planning Already Passed

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Objectives short, measurable actions, are usually written to provide more detail. The objectives should state what will be accomplished, when it will be done by, and how much will be done. Strategy... action plan for a company defines its competitive advantage and delineates how it will achieve economic, social, and environmental performance objectives; in essence, it helps bridge the gap between the long-term vision and the short-term decisions. Strategic Objectives and Analysis An evaluation called a SWOT analysis is commonly used to perform both a thorough internal investigation of an organization to assess its strengths (S) and weaknesses (W) and an appraisal of the external competitive environment looking for any opportunities (O) or threats (T). A useful acronym, PESTLE, can be used to evaluate political, economic, social, technological, environmental, and legal factors that may affect an organization's strategy.Strategic Formulation Goals and objectives are written based on the information obtained from the PESTLE and SWOT analyses. Goals are broad, primary outcomes the organization is hoping to achieve. Objectives are measurable, quantitative statements a manager can use to evaluate an organization's, department's, or employees' progress toward meeting their goals. Strategic Implementation Sometimes referred to as strategic execution, this stage is when the planning stops, and the action begins. Strategic Evaluation and Control Because internal and external conditions are always changing, this stage is crucial. Operational Strategies can be classified into the following categories: developing a well-integrated company using corporate strategies, producing products and services with a focus on customer satisfaction,maximizing the organization's core competencies, and creating a system to measure competitive priorities. Corporate Strategies focus on seeing the company as made up of interconnected parts concentrated on driving the company mission. There are four essential components of corporate strategy: allocation of resources, organizational design, portfolio management, and strategic trade-offs. Decentralized decision-making authority is spread out among employees. Centralized allows for more consistency and control in decision-making but may increase the length of time customers must wait for answers or a resolution for a problem.Well-Diversified Portfolio will mitigate risk if the market changes significantly but may also stretch the core competencies of the organization further than a more focused approach would. It is more difficult for a company to be the market leader in three companies producing a range of products or services than it would be if all efforts were focused on one product or service. Market Position Customer-driven strategies involve any activities a company needs to undertake to meet the few needs of many customers, the many needs of a few customers, or the broad needs of customers in a narrow market. 00:06 01:14Core Competencies the skills and areas of knowledge shared across business units that distinguish a firm and provide a competitive advantage over others. They are the collective intelligence of an organization. Market Segmentation narrow in scope (both cost leadership and differentiation are relatively broad in scope) and is a cross between the two strategies. Segmentation targets finding specific segments of the market, which are not otherwise tapped by larger firms. Cost Leadership pertains to a firm's ability to create economies of scale through extremely efficient operations that produce a large volume. Differentiation refers to a firm's ability to create a good that is difficult to replicate, thereby fulfilling niche needs.Operations Management includes the planning, implementing, and supervising of that production on a short-term basis. [Show More]

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