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In business analysis, PEST analysis (political, economic, social and technological) is a framework of external macro-environmental factors used in strategic management and market research. PEST analysis was developed in 1967 by Francis Aguilar as an environmental scanning framework for businesses to understand the external conditions and ...
In strategic planning and strategic management, SWOT analysis (also known as the SWOT matrix, TOWS, WOTS, WOTS-UP, and situational analysis) [1] is a decision-making technique that identifies the strengths, weaknesses, opportunities, and threats of an organization or project.
Strategy as perspective – executing strategy based on a "theory of the business" or natural extension of the mindset or ideological perspective of the organization. In 1998, Mintzberg developed these five types of management strategy into 10 "schools of thought" and grouped them into three categories.
If a firm's business strategy could not cope with the environmental and market contingencies, long-term survival becomes unrealistic. Diverging the strategy into different avenues with the view to exploit opportunities and avoid threats created by market conditions will be a pragmatic approach for a firm.
For strategic planning to work, it needs to include some formality (i.e., including an analysis of the internal and external environment and the stipulation of strategies, goals and plans based on these analyses), comprehensiveness (i.e., producing many strategic options before selecting the course to follow) and careful stakeholder management ...
However, sometimes it is hard for other firms to get access to the resources and imitate the innovative company's strategy. As a result, innovative companies that implement strategies based on costly-to-imitate and valuable resources can gain long-term competitive advantage. [4]
Since strategic risk comes from the business strategy of a company, it is important for top management and the board of directors to be involved in creating a plan to reduce risk in this area. Management should use their knowledge of the company and its industry to formulate a strategy, and work in collaboration with the board of directors to ...
The most effective way to enforce geocentrism is with a formal reward system that encourages both subsidiary and headquarters managers to work for global goals rather than just defending home country values. This ideology is a great example of how today's business must manage both global and local issues in order to succeed in the end. [2]