Question

Explain the benefits of the multidivisional structure for managing a firm that competes in several industries.

Explain the formal strategic planning process. Name each step in the process and describe the specific activities included in each step and the relationship between the steps.

Answer 1

Describe the steps in formal planning process

The six steps in the formal planning process are:

1) situational analysis; - To know where you want to go, you must first understand where you are. Gather data about your company's present situation, including sales figures and customer feedback. Identify the company's strengths and weaknesses, soliciting both the internal voices of your staff and the external voices of your clients.

2) alternative goals and plans;- Determine the values and outcomes you want your company to achieve, and state them clearly. Craft a vision statement by articulating the central ideas and values that keep your business on track, such as stellar customer service or a commitment to protecting the environment. Work with your management team to clarify this vision, and make sure there is consensus around adopting it as a guiding principle for your company.

3) goal and plan evaluation;

4) goal and plan selection; - Use the vision you have crafted to create measurable goals. For example, if you value customer service, you may work toward the goal of responding to every piece of customer feedback; if you're committed to environmental values, you may set the goal of having a carbon-neutral workplace in three years. Be as clear and specific as possible when creating your goals, using numbers to measure progress and success, and charting timelines for achieving your objectives.

5) implementation; - Develop systems for evaluating progress as you work toward achieving the goals you have set. Put different managers and staff members in charge of domains, such as tracking sales figures or carbon emissions. Create a chain of accountability showing who is ultimately responsible for different outcomes. Have backup plans so you can shift gears and dedicate additional resources if the process isn't going according to plan.

6) monitor and con-trol.- Create formal protocols for assessing your progress. Bring as many voices as possible into this evaluation process, and encourage honesty and objectivity. Assess how well you are progressing toward your goals, but also be open to reassessing the goals themselves, as long as you do so in ways that are still consistent with your long-term vision. Technologies and circumstances may change, making your goals less achievable or relevant. But if you do revisit your goals, do so with your vision in mind so you can find other ways of expressing it in your work.