Importance, Benefits And Risks Of Strategic Planning And Strategic Management

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L Ntentesa Student Number: 43675034 Subject: MNG3701 Strategic Planning Assignment Number: 629489 20 February 2015

Table of Contents
Strategic Planning and Strategic Management 3
The importance, benefits and risks of having a strategy
Gaining and sustaining a competitive advantage
Bibliography 10

FORMULATING A STRATEGY ADVANTAGE THAT IS BOTH COMPETITIVE AND SUSTAINABLE

Organisations of today work in a globalised macro environment, whereby competitors are not just in your back yard (your country), but they are also global players in markets around the world. A question arises as to, how can an organisation ensure that it has an edge over their
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Strategic planning can be used to ensure all staff and stakeholders, everything they do in the organisation is in line with the organisation’s goals. Strategic planning is a controlled effort that shapes and guides what the company becomes, focuses on, does and it’s future plans. Good strategic planning informs the organisation as to where it is going, what it needs to do, where it is going wrong and if it is succeeding. After doing the strategic planning exercise, an organisation puts down their strategy in a strategic plan document. The strategic plans all the formulated plans and it is used by the organisation to communicate how it plans to gain a competitive advantage and succeed. Looking at Apple Inc. you can see how they have done this. As part of their strategy planning, they have listed a few pillars of their strategy, offering a small number of products, focusing on the high end customers, giving priority to profits over market share and creating an aspirational effect whereby people starve and look forward to new Apple…show more content…
Top management do the following five strategic management process, they set the goals the organisation needs to achieve giving direction, they analysis internal and external environments, strategy formulation, strategy implementation and strategy review and control or monitoring. Although gaining market share has not been part of Apple Inc. they have been careful not to deviate from their core strategy, which is producing profitable, high quality, innovative and advanced products. Part of Apple’s strategic management has been to ensure that hen they release a new device example, a new iPhone or iPad, it is best product in the world in that product segment. This has helped Apple to continue charging a high premium on their products, thus becoming profitable and maintaining a competitive and innovative advantage over their

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