ö). In this case, for example, before determining what their goals for the company are, the chairman and CEO should investigate the companyÆs position relative to its power with buyers and suppliers. If it is a buyerÆs market, then it needs to tailor its offerings to suit what buyers want, or they will likely go elsewhere. If it is a supplierÆs market, they need to predicate their strategy on the strength of supplier power. Barriers to entry, threat of substitutes, and rivalry all need to be factored into their strategy to produce a strategic plan that will leverage their strengths, sidestep threats and weaknesses, and help them successfully accomplish their goals.
An industry analysis can provide some of the same information, but in different terms. The strength of the industry as a whole and its areas of weakness are important information to combine with the five forces affecting the company to come up with a strategic plan that considers the positives and negatives on every front. Strategic thinking demands an understanding of these factors so that they can be weighed into the companyÆs strategy.
c. In this scenario, the challenges facing strategic planners with regard to thinking strategically include opposed and competing goals and objectives that are not in sync with the industry context or the environmental panning results. The first order of business for achieving an effective strategy is to employ the environmental panning results in developing the strategy, and then to agree on the goals and objectives to be accomplished. Next, information that feeds strategic thinking needs to be incorporated into the strategy sessions; this would be information on competitive strategies that apply to the particular opportunities available to the company, as well as the niches that could be developed based on customer demographics. The companyÆs strengths are good food for strategic thinking, also, since they can be parl...