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Is the role of strategic management changing in the context of current economic processes and the development of new information technologies typical of the current fourth technological revolution, known as Industry 4.0?
Strategic management is an important area of ​​management in the context of management of both individual enterprises (microeconomically) as well as domestic economic policy (macroeconomics).
In connection with the development of internationally operating corporations, strategic management acquires a new character, it becomes a part of the study of information and economic globalization processes.
In addition, strategic management can also change its charler in relation to processes such as prolonged business cycles, shortened life cycles of products, increased importance of information, technology, innovation, etc. as particularly important production factors in knowledge-based enterprises and economies in which an ever-increasing role of fully computerized advanced information processing technology, ie technologies typical of the current fourth technological revolution, known as Industry 4.0.
The current technological revolution, known as Industry 4.0, is determined by the development of the following technologies of advanced information processing: Big Data database technologies, cloud computing, machine learning, Internet of Things, artificial intelligence, Business Intelligence and other advanced data mining technologies.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
Is the role of strategic management changing in the context of current economic processes?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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Dear Fuad Gattaz Sobrinho,
Thanks for answering the question:
Is the role of strategic management changing in the context of current economic processes in the era of Industry 4.0?
Yes, an important issue is currently the use of Industry 4.0 technology to support the strategic management process of a company, including, inter alia, take into account the Internet of Things mapping to improve the functioning of the business.
Thank you, Regards,
Dariusz Prokopowicz
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Hello,
I am about to start work on a volunteer level with a local community, around issues of sustainability. The plan is the map sustainable business and initiatives in the region, and then work with the community to co-create an action plan. Does anyone have any experience here and advice? Things to be weary of? I would like to obtain a paper from the work so want to do a good job academically as well as driving some great outputs for them. Initial thoughts:
- Citizen Science Focus
- Co-creation is key
- Pathways from Current practice to next practice is essential.
- Obtaining buy-in from local key individuals will help.
- Collaboration from local authorities beneficial.
- Predominant focus on workshops, focus groups, interviews.
- Potential frameworks: Framework for Strategic Sustainable Development, Comprehensive Strategic Analysis for Sustainability, Business Model Canvas, Value Mapping Tool.
Thanks,
Graeme
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Hi Graeme, one approach that I know of actually responds to some of your conditions. It comes from and is often implemented in a different context but it does tick most of your boxes with regard to the design: https://ccafs.cgiar.org/climate-smart-villages There are actually many more academic and white papers where this approach is explained and appraised.
Perhaps you could also reach out to Ashoka fellow Mike Morrice: https://www.ashoka.org/en-nl/fellow/mike-morrice He's a social entrepreneur who seems to have done similar work that you plan to do in Canada's Waterloo area.
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The unpacked-food stores (Unverpackt-Läden) got attention in Germany since 2014. There are different studies related to unpacked-food stores in Germany ( Splendid, PWC, and many articles) but none of them could able to give a clear insight on Market Size of the unpacked-food stores in Germany. I am very interested to know how to calculate the market size for Unpacked-Food Store in Germany.
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I appreciate Nayan Kadam for the valuable and demanding topic. Would be interested to know as well.
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The formulation of the strategy depends on identifying the activities that must be accomplished, and using the organization's distinctive capabilities and strengths in a way that is not found in other organizations and depends on three main elements: the strategic goals, strategic analysis, strategic choice.
Many strategic analysts rely on analyzing the financial ratios of performance appraisal, analyzing the strategic gap and knowing its internal and external causes. It is the starting point in exploring the financial conditions in the facility and an effective way to obtain a clear view of the operations of its various activities
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recommend to begin with screening 8 to 10 (or more) corporate reports to identify the most "valuable" ratios (the ones that are monitored by the "elephants") and then use the short-list of ratios to run a preliminary diagnostics. Matching ratios with physical performance data (i.e. unit economy or sales/output data) and comparing those with the industry average or the nearest/biggest competitor could help draft a strategy, at least the generalized one.
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SWOT is one of the most important tools of strategic analysis, which is the basis for strategic decision-making
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I agree and made a short wiki on youtube to explain our students in few minutes the SWOT analyse
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Currently, I am working on designing a summer school program for the university in Germany. We have decided to implement the pilot program & evaluate the results based on its success before implementing the actual summer school program.
Which strategic methods or educational tools would be helpful to evaluate the entire summer school pilot program?
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Dear,
it is very interesting question in the present context of very high complex project. A Pilot testing of any program is a small scale implementation of potential solutions that allows team members to assess the effectiveness of the solution before making changes in the entire system. The effectiveness of pilot program can be evaluated by insuring the following :
· Whether the objectives of the pilot program evaluation are defined specifically assure that pilot project is able to meet the objectives. Whether sufficient and relevant activities are included into project.
· Ensure the gathered data to evaluate the program are appropriate
· Whether proposed analysis tools are appropriate
· Whether recommendation of the project are in conformance to the proposed project objectives.
To conclude, effectiveness can be enhanced by developing the tool that would allow for a comprehensive and effective review of each of the term that cover areas like service delivery, finance, department operations, and employee satisfaction.
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I want to be sure that my investigation of the extant literature is thorough in identifying all terms used to describe the manner in which deliberate/intended and emergent strategy (Mintzberg, 1978) unfold to become realized or unrealized/ephemeral strategy (Mirabeau & Maguire, 2014). For instance, another name I've found is adaptive strategy (Andersen & Nielsen, 2009). Does anyone else have additional terms I may need to research?
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Dear Ann:
I remember an author whose name is Quinn who coined the name "incremental strategy" (in spanish "estrategia incremental"). You can read some book by himself or several readings by Scholes/Whittington/Johnson or Mintzberg et al in "Strategy Safari". According to Quinn, managers have an initial strategy they pretend to use, while developing it they realize certain problems so they have to adapt it. These steps are small compared to the first one, so that´s why he speaks about "incremental strategy".
Regards
Gustavo Concari
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I would like to present the proposal to start summer school program at university and as per my research, there is a need. I did study of Market Analysis, Customer Segmentation, Size & Growth of Market, Competitors analysis..etc. and now I would like to know how could I prepare the proof of concept. The one solution is a pilot program but on a piece of paper, how would I illustate the Poc using my research?
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The proof of concept is a a test of the prototype of the system intended to be implemented. This will determine if the project is feasible or not.
You can look on sample templates online to give you an idea. The result of your initial research will form part of the POC.
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I am designing the summer school program for university and I'm interested to calculate the market size by either top-down or bottom-up approach. Please give your best rough figures!
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Dear Nayan,
The size of the market depends on relative quality and relative price. The lower the price for participating students, the higher is the potential market size for the given quality level.
Success!
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I am designing a new Summer School Course for Bachelor Students and I would like to know the need of customers. Which strategic analysis would be helpful to understand the need of the students?
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I ask the above because needs of students will vary between the subject areas of study, how long they have been studying, etc. and more particularly on their own backgrounds and aspirations.
If you want to use a strategic tool, you may do so. But if you want to sow a flower bulb in your garden, you can use a small hand-held spade, or you can use a large gardener's spade or you can use a mechanical digger. It seems a recourse to a strategic tool sounds much like a mechanical digger.
I would create a small questionnaire and in that I would ask a couple of questions including few questions ( without names) about themselves and then a few along the lines of :
What do you want to achieve with your study?
What kind of work attracts you?
What kind of industry do you want to work in?
What is it that you find difficult in your studies, etc.
In what way can this school help you to achieve success in your studies?
Then, a simple frequency distribution should be more than suffice.
Here are a few ideas to think about:
First , Occam’s razor or the law of parsimony which says the simplest solution tends to be the right one
What about Albert Einstein’s assertion: “The definition of genius is taking the complex and making it simple.”?
Apologies for a long answer...
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I have collected a bunch of data from Summer Schools in Germany and I would like to know which one of this is the best Summer School based on specified criterias using MCDM analysis.
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Dear Nayan!
Similar cases from the author of this method T. Saati:
1) Saaty, Thomas L.; Peniwati, Kirti (2008). Group Decision Making: Drawing out and Reconciling Differences. Pittsburgh, Pennsylvania: RWS Publications. ISBN 978-1-888603-08-8.
2)Saaty, Thomas L. Decision Making for Leaders: The Analytic Hierarchy Process for Decisions in a Complex World. — Pittsburgh, Pennsylvania : RWS Publications, 1999-05-01.
3)Saaty, Thomas L. The Hierarchon: A Dictionary of Hierarchies. — Pittsburgh, Pennsylvania : RWS Publications, 1992. — ISBN 0-9620317-5-5. 496 pages, spiral bound. Each entry includes a description and diagram of an AHP model; the models are grouped in categories: educational, government/public policy, government public/strategy, health military, non-profit, personal, planning, political, etc.
Best Regards, Andrey Khorolskiy
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Hi everyone,
I would like to conduct a study which takes about 2 weeks to be completed. Prior the 2 weeks, Participants are introduced to the concept of ideation or  generation of ideas, then they are asked to come up with at least 10 ideas a day. These daily 10 ideas are supposed to be in one category (For example: 10 ideas about how I can be more productive today, 10 ideas about how to solve a certain problem and etc.) .
They complete tests of creativity, subjective well-being and some other tests before the completion of 2 weeks and after 2 weeks to see if coming up with 10 ideas a day makes any changes in the results of those tests. As research indicates, creativity correlates with subjective well-being *. But is it creativity to come up with 10 ideas a day?
I am asking to please reflect on my hypothesis, as I feel something is missing, or the hypothesis can not be studied.
I also would like to ask what psychological concepts do you think may correlate with creativity or idea machine?
Thank you
Sincerely,
Hossein
* Peyvastegar, M., & Dastjerdi, E. (2010). Relationship between creativity and subjective well-being. International Journal of Behavioral Sciences, 4(3), 207-213.
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I see two different issues:
The first thing to do is to clarify Sylvia's critique to the terms and how they relate to one another. My take is that creativeness and ideas are linked via the appraisal of creativeness of that idea. The idea itself must be valued (that becomes another issue completely different. One which I have taken interest on).
The second is that one must be careful that one set of problems do not reinforce and bias the study. For example, given that I work on X and my work focuses on analizing productivity I reinforce my well being and the next day I may be able to tackle 10 ideas about how to solve a certain problem. The same can be said in reinforcing frustration or anxiety of coming only with 5 instead of 10 ideas. I would space the problems further apart to avoid biases. I would also narrow it down to a specific profile of individual.
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What knowledge management activities appear in the four perspective of Balanced Scorecard? Knowledge creation, knowledge loss, knowledge accumulation, knowledge sharing, knowledge utilization, or knowledge internalization?
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there are many direction for operationalizing strategic orientation, can someone recommend the most comprehensive one for that.
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Dear Murad,
In 2012, we developed with Borge Obel a comprehensive model to evaluate strategic orientation. See below the linl to our working paper - https://www.researchgate.net/publication/256034135_Revisiting_Miles-Snow_Typology_of_Strategic_Orientation_Using_Stakeholder_Theory
Sincerely,
Igor Gurkov
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Hello,
I'm searching for academic references that critically explore how recent strategic analysis tools from the Osterwalder & Pigneur - Kim & Mauborgne (Strategy canvas, 4 action framework, Business Model Canvas) complement traditional strategy tools as the Porter 5 Forces, PESTEL, SWOT and Ansoff?
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Joseph,
The models you refer to are created by consultants and have received less academic and business validations that the classics you refer too. They cannot be called "frameworks". This does not make them uninteresting, but they require to be taken with a grain of salt. It is true that the classics are somewhat dated. If you want to look at contemporary academically solid frameworks, look also at the Resource Based Theory, Knowledge Based, etc. Look at
Conner, K.R., 1991. A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm? Journal of Management 17, 121–154.
This can also help you structure your comparison.
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I am looking for literature on something link a consumer trait or a tendency of consumers to buy the more expensive option of something, such as the premium mobile phone contract with all inclusive, more storage for the phone (e.g. 128 GB instad of 64 GB) etc. 
Not necessarily because they need the additional service but rather because they (always) want to have the best product around for themselves (if it is not too expensive). They buy the product merely because it is available... 
The motivations behind this behavior could be risk avoidance, but how is the phenomenon called?
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Many of the individuals would not like to associate with the cheapest item in the market, because it is below their prestige to be seen with the cheapest product. Art the same they cannot afford a premium product they like. Thus they are willing to a little more for an enhanced/ or better brand product for satisfying their ego/ or we are superior to many others.
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How it can be classified in traditional RBV?
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Strategic resources are those key resources which are race, difficult to imitate and difficult to substitute.
Location of business can be a strategic resource or an ordinary one. For example, a prime location in high street is a strategic resource to a flagship retail shop of a luxury brand. However, a random location on a small street in a second tier city is not.
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Strategic analysis of the costs; take various types.
Where we find the analysis which is based on the analysis of activities, analysis Kaison, etc.
The question arises; what is the appropriate method for strategic analysis of the costs in health institutions? Which can contribute to cost control
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The basic problem is as follows. On one hand, costs for treating a certain patient in some cases can go without limit. On the other hand, due to asymmetric information hospital can overspend. That is why regulator is interested in such contract with hospitals that they spend money in the most efficient way.
I heard about incentive-compatible contracts where compensation for spending is not full but creates incentives to spend less. At the same time, absolutely necessary services for patients should not be rejected.
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I want to find out how the effect of strategic control on startegy of coorpration , Do you have any suggestions on what (recent) papers would be suitable for this matter?
I am grateful for any ideas, suggestions, or information that you may have!
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Dear Jafar,
In addition to the response by Nadeem and excellent links provided, there is a huge body of knowledge within the strategic management area. While the question that you have posed is also very broad and doesn’t limit or narrow the scope to the specific industries, I will attempt to limit my responses to examples drawn from the construction and manufacturing industries as to how ‘strategic control’ might have some impact on the overall strategy of organisations or corporations (irrespective of their size, i.e. large versus small and medium sized enterprises)
The starting point might be by examining some seminal studies such as Flitman (1996); Woodcock (1989). The first study cited (Flitman, 1996) provides a methodology for measuring such impacts and provides examples of the benefits (arising from the effect of implementation...). The second study by Woodcok (1989) sought to measure strategic control and demonstrated some tangible outcomes such as increased competitiveness reference below):
Flitman, A. (1996) "Reporting for strategic control ", Management Decision, Vol. 34 Iss: 3, pp.62 - 71
Woodcock, D.J. (1989) "Measuring Strategic Control and Improvement in Manufacturing", International Journal of Operations & Production Management, Vol. 9 Iss: 5, pp.47 – 55.
From the construction industry perspective, we have also just completed a project on reverse logistics (RL) titled “Designing for reverse logistics (DfRL) within the building life cycle: practices, drivers and barrier” and identified some linkages between strategic planning (control included...) with effective implementation of reverse logistics. A good reading in this area is the book by Johnson et al. (2008):
Johnson, G., Scholes, K. and Whittington, R. (2008), Exploring Corporate Strategy: Text and Cases, 8th ed., Pearson, Harlow.
Other studies on supply chain management and strategic control can be found in the following:
Autry, C.W (2005), “Formalization of reverse logistics programs: a strategy for managing liberalized returns”, Industrial Marketing Management, Vol. 34, No. 7, pp. 749-757.
If for example you were keen on exploring the impact of ‘strategic control’ on a firm’s decision (strategic) to pursue ‘sustainability’, then the following recent study is a good read:
Crutzen, N. and Herzig, C. (2013), A review of the empirical research in management control, strategy and sustainability, in Lucrezia Songini , Anna Pistoni , Christian Herzig (ed.) Accounting and Control for Sustainability (Studies in Managerial and Financial Accounting, Volume 26) Emerald Group Publishing Limited, pp.165 - 195.
As stated earlier on, the scope could be narrowed (i.e industry and firm size) to elicit further detailed answers. Nevertheless, this is an interesting research area and direction to be purusing.
All the best with your research,
Nicholas
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I would be greatful if someone could give ideas on the most important issues regarding the dynamics of an ecosystem of innovation in developing countries.
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Dear Rosane,
Your question has two dynamics. Dynamics of ecosystem and dynamics of innovation.  May I put your question in this way.
'What are the determinants of ecosystem dynamics in urban environments? What are the determinant that influence (enhance/ reduction) those ecosystem  dynamics.
Have I clarified your question or complicated it?
Upananda (Sri Lanka)
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Towards the projected 100,000 jobs expected to be created by Berlin's Tech Start-Up Ecosystem by the year 2020, I am undertaking meta analysis of primary empirical data of what the critcal success factors for Berlin's tech start-ups could be. 
Generally, 9 out 10 start-ups fail; The same failure rates also apply to new tech ventures in Berlin.
With Berlin's already conducive atmosphere for tech entrepreneurship, a decrease in failure rates could springboard the 100,000 jobs creation before or in 2020.
I would be grateful if anyone could assist with or point to any scientific literature on performance/success factors for tech start-ups in the global ecosytem, Europe and/or Berlin.
 
 
 
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The good scientific reference is Ron Adner, The wide lens a new strategy for innovation". The author spent a decade studying the root causes of innovation success and failure. His perpective inludes the Ecosystem.
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The article you cited is similar to that of Prahalad and Hammond's (2002) article in HBR September issue " Serving the worlds poor profitably". According to Prahalad and Hammond, the size of market belonged to the bottom of the purchasing power parity (BOP) pyramid is 4000 million in 2002. Now it may have reached 5000 million since disparity between poor and rich is widening. Rule of thumb for social innovation is based upon the Maslow's hierarchy of needs. It could termed as shared value as given in your citation but the basic principle is the needs hierarchy.
However, it is important to note that poor also like the things that rich are enjoying and we describe it as craving for pleasure. If multinational companies target craving for pleasure to create value, instead of fulfilling basic physiological needs, it cannot be termed as shared value in the long-run.
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The strategy discipline has established itself in academics since its start in the 1950s/1960s. However, it is not clear whether it is a sub-field of political economy, neoclassical economics or business management. It begs an understanding of the difference between enterprise as praxis and economics as theory.
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Strategic thinking can neither be owned by one particular field nor be categorized as a sub field of only a few fields such as political, business and management. It cannot be limited to economic thinking either. There is a common fallacious tendency, often in academic domains, to claim sole ownership of key human and professional knowledge or skills which are instrumental for the success of many, if not every undertaking.
Strategic thinking pervades and percolates every human enterprise. It is a tool human beings, by virtue of being rational, employ and ought to engage in order to identify and attain the realistic goals in life, groups, community, organizations, the business and the political worlds. Strategic thinking is key to and the goal for planning whether short term or long term in every undertaking geared for achievement, change or development.
I consider strategic thinking as an inalienable component of meta-thinking that lies within, beyond and above any human rational effort to attain and facilitate the actualization of meaningful, tangible and desired goals in the individual human space, organization, business and the society. It is a human life skill for survival, change and development in every situation and hence applies to every person, in every field, under every circumstance.
Strategic thinking is both the nature and essence within which human reasoning is constructed. It helps define the future and affords confidence for survival as it identifies the parameters, indicators, required effort, resources and time for success in human life, organizations, business, politics and all fields in which a human being is involved. Thus, strategic thinking gives value to a human being, a group, an organization and a society and ultimately motivates, inspires and spurs us to strive for the values.
We therefore need strategic thinking in all human and social institutions - communications, economics, trade/business, marketing, politics, management, infrastructure, health, education, transport, religion, security, entertainment, catering, human and international relations. We need strategic thinking even in searching for and in proposing a life partner.
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I want to start a new research project on how strategic risks relate to behavioral strategy! Any suggestions for this?
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In my point of view (for example in road safety): Strategic risk is a long-term risk which forms part of long-term decisions taken by organisations which manage road safety in a specific area. The strategic risk on a country’s road network is the uncertainty about the strategic goal which is to protect road users from death and injury.
More information in paper: STRATEGIC RISK MEASURES IN ROAD TRAFFIC on researchgate publication.
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Are you aware of any proven methodology to assess the strategic orientation of a company using archival data (technology orientation; customer orientation and competitor orientation) (Gatignon and Xuereb 1997)?
The only solution I found in the literature, was run a content analysis of the letter to the shareholders, but the R2 tends to be low.
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Archival data can be used for measures of strategic orientation in terms of innovativeness - R&D expenditures are often used. Strenght of this measure is that it can be compared and assessed through time, you can therefore investigate changes in strategic orientation of a firm. Weakness is that it really only measures a small part of what innovativeness is.
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The general definition is a little far from business meaning, and is not easily generalized.
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Any books or articles
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For the flavor of the month, read the McKinsey Quarterly, the Harvard Business Manager, and Books published by seniors of the big consultancies. That should make sure you can talk the talk at the right dinner-parties.
For learning something substantial about strategy design, I personally prefer to refer to books that are decades or centuries old and have stood the test of time. Strategy design is a generic task, and many fundamentals do not change. Most new strategies are just old stuff re-packaged - a variation on Porters generic strategic (quality leadership, cost leadership, niche market). If you are aware of the the previous incarnations, you will also be much better at identifying flaws in hypes.
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Base on strategic models
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For case study analysis, first & foremost is to understand and note the situations in the case. Further study of the case, must lead to identification of the problems which the organization, under study, is facing. These two factors, viz, Situations & Problems in the case, will help in further analysis, using strategic model. Case analysis could be done, using the concept of SWOT ( Strengths, Weaknesses, Opportunities and Threats ), ETOP ( Environmental Threat and Opportunity profile) & SAP ( Strategic Advantage Profile) analysis, Matrix analysis ( e.g. BCG, GE Nine Cell etc. ). The strategic decision on analysis, must lead to competitive advantage & value creation for the organization to overcome the problems.
This method is based on basic concept of strategic management. There could be other methods of analysis.
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Factors that have an impact on formulation and implementation.
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Identification of strategic factors requires systematic analysis of both external and internal environment of the firm. External environment analysis comprises of micro, and macro analysis of the business environment.' PESTEL' analysis is macro analysis. This will determine the strategic factors that indicate opportunity and threat in the business environment. The internal environment of the firm is created by the interaction of people, process and technology in the prevailing organization culture. Strategic factors of firm's strength and weakness are identifiable in all the functional areas of the firm. Say, market share, profitability, skill, productivity etc. Firm's mission leads to objectives. The integration of strategic factors, result in realization of objectives. Policies, plans and programs are required to be worked out for achievement of objectives through proper allocation of organizational resources.
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Can planners put the individual future of citizens within the urban vision?
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But we must bear in mind that as a precise model is the result of a simplification of reality is not possible to take into account all the parameters!