BISMILLAHIRAHMANIRAHIM..... 11 OCT 2017 CREATED BY FATIHAH...
Strategic Plan Objectives
Strategic plan objectives can be either internally or externally focused. Internal strategic objectives look within a company to increase its productivity, efficiency, quality standards and overall operational effectiveness. An example of an internally focused objective could be to reduce the costs associated with production mistakes or to increase employee satisfaction and loyalty. Externally focused strategic goals center on a company's performance in the marketplace. Examples of external objectives include goals for market share growth, market leadership and innovation in product development.
Internal Strengths and Weaknesses
A comprehensive strategic plan includes a situational analysis that considers internal strengths and weaknesses. Analyzing a company's current strengths and weaknesses provides a wealth of insight helpful in accomplishing internal goals and internal analyses can provide advantages for achieving external goals, as well. Analyze all components of your businesses when identifying internal strengths and weaknesses. Look into the education, experience and overall competence of your employees to discover competitive advantages in your workforce. Review your production systems to spot any competitive advantages or clear impediments. Review your cost structure, pricing policies and financial ratios to determine you financial strength or weakness compared with competitors.
Assessing the Internal Environment
As we have indicated, when an organization evaluates which factors are its strengths and weaknesses, it is assessing its internal environment. Once companies determine their strengths, they can use those strengths to capitalize on opportunities and develop their competitive advantage. For example, strengths for PepsiCo are what are called “mega” brands, or brands that individually generate over $1 billion in sales1. These brands are also designed to contribute to PepsiCo’s environmental and social responsibilities.
PepsiCo’s brand awareness, profitability, and strong presence in global markets are also strengths. Especially in foreign markets, the loyalty of a firm’s employees can be a major strength, which can provide it with a competitive advantage. Loyal and knowledgeable employees are easier to train and tend to develop better relationships with customers. This helps organizations pursue more opportunities.
Although the brand awareness for PepsiCo’s products is strong, smaller companies often struggle with weaknesses such as low brand awareness, low financial reserves, and poor locations. When organizations assess their internal environments, they must look at factors such as performance and costs as well as brand awareness and location. Managers need to examine both the past and current strategies of their firms and determine what strategies succeeded and which ones failed. This helps a company plan its future actions and improves the odds they will be successful. For example, a company might look at packaging that worked very well for a product and use the same type of packaging for new products. Firms may also look at customers’ reactions to changes in products, including packaging, to see what works and doesn’t work. When PepsiCo changed the packaging of major brands in 2008, customers had mixed responses. Tropicana switched from the familiar orange with the straw in it to a new package and customers did not like it. As a result, Tropicana changed back to their familiar orange with a straw after spending $35 million for the new package design
11 OCT 2017 CREATED BY FATIHAH...
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