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MGT 498 Week 2 DQ2

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Week 2 DQ2
What is the role of strategic planning in creating value for the organization? Provide an example
of how a company uses strategic planning to create value for the organization. What is a
competitive strategy? Choose two or more competitive strategies and compare why each
strategy may be appropriate for different companies. For example, one company may use a low-
price strategy while another may go for high quality.
Strategic planning allows for employees to be involved with the improvement of the internal
environment of the organization. Creating tasks and goals for people to accomplish creates unity
amongst the employees. The culture in the organization has a chance to change because of the
actions of the employees. In a more literal sense, companies create value by enacting policies
during the strategy formulation process. These policies will enable a company to identify
the areas that the company will focus on so that it can as profitable as possible.
A business strategy that is developed to battle with all other competitors is considered a
competitive strategy. Two strategies that can work for different companies are lower cost strategy
and differentiation strategy. Lower cost would be an effective strategy for a company that has the
necessary tools to manufacture a product at a cost lower than all competitors. In my line of work
we custom fabricate acrylic display boxes. If somebody wants large quantities I cannot really
provide a low cost solution because each box is done individually. In this situation I recommend
facilities that have mold injection machines that can mass produce the same product at a much
lower cost. Differentiation is a strategy that is best used by companies that are in a saturated
industry. In Seattle there are more coffee shops than anything it seems. No other is more famous
than the small coffee shop that has become a global brand in Starbucks. Starbucks has created a
brand that is recognizable, a quality product and a lingo that spills into other coffee shops. How
many time have you been at a mom and pop coffee shop and asked for a Venti Latte?
Differentiation has definitely worked for them.

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Week 2 DQ2 What is the role of strategic planning in creating value for the organization? Provide an example of how a company uses strategic planning to create value for the organization. What is a competitive strategy?? Choose two or more competitive strategies and compare why each strategy may be ...
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