MGMT 2100 Chapter Notes - Chapter 6: Competitive Intelligence, Market Environment, Strategic Planning

• School: University of Iowa
• Department: Management
• Course: MGMT 2100
• Professor: All

Document Summary

Importance of organizations to develop strategic management and planning: three principles of effective strategy in large versus small firms. A business plan helps an entrepreneur communicate the goals, strategy, and measurements of the new business. Strategy is a comprehensive plan for how the organization is to achieve its goals. This should be fluid and change as the business progresses. Strategic management is the process of implementing the strategy and involves all managers. Managing, from the middle managers stand point, is how the plan will be carried out. Strategic planning is the formulation of goals long-term and short-term. This gives direction to business practices the organization uses. Creativity and innovation are fostered as a result of the encouragement of ideas to all levels of the business: a competitive advantage must be sustainable to be effective. An organization needs to get ahead and stay ahead in the market. Four areas to measure this are innovation, effectiveness, customer"s responsiveness, and quality products.