A-Level商科-公司战略性计划Corporate Planning

Revision: Corporate Planning

A mission statement is a phase or set of phrases set out by the business that dictates in effect, what its broad aims are what its purpose is and why it is in existence. Microsoft's for example is "A computer on every desk" demonstrating what they aim for and why the company is doing what it is doing. It is useful in giving employees a sense of direction, they know what they are working towards, what the business is pushing for and it also gives a sense of ambition to the employees and also to any stakeholders.

Strategic plans are important because they dictate where the business is going therefore making sure that it can be kept on track and its progress monitored. Also, it allows employees to know what is going on in the company, what it is aiming for and what it hopes to achieve. Shareholders will look at a strategic plan and evaluate a business' ambition depending on it therefore it is important to make sure the plan is forward looking and positive. Without a strategic plan a business could well end up wasting huge amounts of money and resources by heading in the wrong direction and achieving nothing. Finally, a strategic plan can give the company an ethos and a culture that can be very important in achieving its aims.

Corporate strategic vary hugely depending on the type of company and also the type of market in question. For example, the Sun and the Times (owned by Rupert Murdoch) followed a price competitive strategy in the 1990's concentrating on offering cheaper newspapers in an effort to boost market share. Reebok, when faced with a stiff competitor and a better management in Nike decided not to compete on the fashion models of trainers but aimed to concentrate their efforts on the more stable and dependable adult ranges and to cut costs to offset the fall in market share. McDonald's strategy was to aim to meet the needs of an increasingly mobile population with cheap and quick food and also creating huge added value through careful marketing allowing prices to be raised but the image of value to be retained. Other strategies would be to come in at the very bottom price wise and aim to just provide the cheapest possible goods and go for mass sales which would be the strategy of bargain stores such as Primark and Matalan. Finally, an equally commendable strategy could be to remain as a small business with a dependable customer base and to maintain a niche in the market therefore surviving and building up reserves for a possibility of expansion in the future should it become essential.

A strategic plan should incorporate what the business intends to do in the future with regard to its strategy, be it for expansions, increasing sales or incorporating a new company. Then it should set out how this will be achieved; what finances will be needed and how they will be provided, what extra man power might be needed and how it will be sourced and what effect marketing and promotion might have on the businesses plan.

Strategic objectives are the overall objectives of the business and what it aims to achieve with the plan in question whereas operational objectives would set out how this is going to be achieved in detail, how its operations (such as production) will need to be changed in order to meet that 5% increase in sales of whatever the objective might be. Strategic objectives move the business forward over a long period of time and in a certain manner, operational/tactical objectives are how this is going to be achieved in an operation sense.

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