In the following document a detailed strategic plan for a DVD company will be presented. It will demonstrate the ways in which the company's performance could be improved. It will consider details on Technical, Financial, Sales, Marketing and Production aspects of the product and company.
Why have a strategy? [1,2, 14, 15]
It is vital that an organisation has a shared sense of direction, knowing what needs to be changed and also how those changes will be implemented. It will give assurance to managers, among other things, assisting in resource decisions and in their sense of purpose. There is however no correct strategy as such, due to the uncertainty and complexity of the future, but a sense of direction is better than no direction at all and it will aid with the day-to-day running of management activities, making sure they fit in with the long-term interests of the organisation.
It is possible to avoid having a strategy by running the business on an ad hoc basis, where the company continues to do things relevant to the market, but there have been many major failures from adopting this approach. Thus it is now standard practice for organisations to have a strategic plan.
As indicated above setting up a strategy is not a trivial task. Inherently it is based on an unknown future, where there are many alternative paths that the company could follow. The environment the firms operate in is competitive and of a dynamic nature, which also adds to the complexity.
There are three main stages to producing a strategy:
This means before a strategic plan can be drawn up an analysis of where the company currently stands needs to be carried out. This will be in relation to its customers, competitors and its skills and capabilities. This will...