Business Ian Magazine

One Response to “Managerial effectiveness in strategic planning and ultimately operational planning is unlikely to occur unless”

1. MrBizPlan on June 19th, 2010 at 4:17 pm

   The general environment is made up of six key components as described below:

   1.Economic Forces – include interest rates, inflation, unemployment, and economic growth.

   2.Demographic Forces – changes in characteristics of population such as age, gender, ethnic origin, race, sexual orientation, and social class.

   3.Social/Cultural Forces – pressures emanating from the social structure of a country or society or from the national culture.

   4.Technological Forces – the effects of technology on design, production and delivery of goods and services.

   5.Global Forces – outcomes of changes in international relationships…economic, political and legal environments.

   6.Political and Legal Forces – changes in laws and regulations.

   Until management understands how the above forces effect their organization they will have a difficult time planning their strategy and therefore implementing effective and efficient operations.

   The above criteria are part of the External Environment which is part of the Opportunities and Threats portion of the SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis. Other parts include Internal Environment (Credit, Financial Position, etc) and some feel that a final one includes Driving Forces which is the internal and external issues that affect a corporation.

   All of the above are designed to analyze a company’s strategy and implement an action plan to become/maintain profitable.

   This is a very basic answer to your (somewhat vague) question but I hope it helps.

   Mr BizPlan