![]() Different types of organizations include not-for-profit, for-profit, public, private, government, voluntary, family owned and operated, and publicly traded on stock exchanges. As such, organizations operate in different external environments and are organized and structured internally to meet both external and internal demands and opportunities. Organizations are groups of people deliberately formed together to serve a purpose through structured and coordinated goals and plans. To succeed and thrive, organizations must adapt, exploit, and fit with the forces in their external environments. Define the external environment of organizations.Macro (external) environment – larger societal forces that affect the microenvironment. ![]() Internal environment – can be controlled, however, it can’t influence an external environment.Micro (External) environment – small forces within the company that affect its ability to serve its customers.We will focus on micro and macro factors in this module: ![]() No discussion of strategic planning can ignore the micro and macro factors that are relevant in the success and possible failure of the retail business. The business environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful customer relationships. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. Therefore, strategic innovation and tinkering with the ‘strategic plan’ have to be a cornerstone strategy for an organization to survive the turbulent business climate. Strategic planning may also be a tool for effectively plotting the direction of a company however, strategic planning itself cannot foretell exactly how the market will evolve and what issues will surface in the coming days in order to plan your organizational strategy. The resulting document is called the “strategic plan”. ![]() In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. In many organizations, this is viewed as a process for determining where an organization is going over the next year or more-typically 3 to 5 years, although some extend their vision to 20 years. In business strategic planning, the third question is better phrased “How can we beat or avoid competition?”. All strategic planning deals with at least one of three key questions: Strategic planning is the formal consideration of an organization’s future course. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats ) and PEST analysis (Political, Economic, Social, and Technological analysis) or STEER analysis involving Socio-cultural, Technological, Economic, Ecological, and Regulatory factors and EPISTELS (Environment, Political, Informatic, Social, Technological, Economic, Legal and Spiritual) Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. It is the process of specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. ![]() Differentiate between macroenvironment and microenvironment considerations in strategic planningīusiness (or Strategic) management is the art, science, and craft of formulating, implementing and evaluating decisions that will enable an organization to achieve its long-term objectives. ![]()
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