What are the five types of strategies organizations engage in?
corporate restructuring growth maintenance business + competitive position
The strategic planning process includes (7):
- corporate governance
- economic, societal, technological, political + demographic trends and HR
- leadership theories
- organization development principles + practices
- organization design + structure
- change management
- risk management
Organizational strategy is
the formulation of strategies as well as the goals, objectives, and action plans for gaining competitive advantage.
Intended Strategy is
a strategy that is formulated at the beginning of the planning year.
Emergent Strategy is
a strategy that is formulated in response to an unexpected event
Realized Strategy is
a strategy that is implemented, which could be the intended strategy or an emergent strategy
What are three growth strategies?
- organic or incremental growth
- global or international growth
- mergers + acquisitions
What are four restructuring strategies?
- turnaround also known as retrenchment- refocus efforts on particular products or services, launch a new product or service, stop selling unsuccessful products, reduce workforce, create efficiencies etc.
- divestiture- selling a division or part of the business that creates a certain product or service to another organization
- liquidation- selling off assets at bargain prices, closing businesses, and laying off employees
- bankruptcy- when businesses cannot pay creditors, they may be forced to cease operations
The Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act both provide a proposal regime to allow the debtor (company) to:
-reorganize and reach compromises with its creditor.
If the plan of arrangement is approved both by the court and creditors, it continues forward following the plan.
Why do organizations choose a Maintenance or Stability Strategy?
- organizations choose this strategy to maintain stability
- some may choose this in times of difficult economic conditions
- these strategies have less impact on human resources
What are five competitive positioning strategies?
- low-cost provider (pricing product or service lower than competition)
- broad differentiation (differentiate product to appeal to broad range of customers)
- best-cost (more value for their money)
- focused or market niche based on lower cost (to a select group of customers)
- focused or market niche based on differentiation (ex. luxury goods)
A vision statement answers the question:
where are we going?
A mission statement answers the question:
why do we exist?
Values describe:
- the behaviours that enable the organization to accomplish it’s mission
- the basic beliefs that govern behaviour in an organization
Objectives can be both hard and soft. What are hard objectives? What are soft objectives?
Hard// the goals that express, in measurable terms, what an organization intends to achieve
Soft//the goals that define the targets of social conduct for the organization and may not always be quantifiable
What does PESTD stand for?
Political Economical Social Technological Demographic
