Strategic Management Process: Riordan Manufacturing
Strategic Plan Paper
MGT/498
August 25, 2014
Paul Kramer
Strategic Plan Paper
According to (Wheelen & Hunger, 2010) "Strategic management is a set of managerial decisions and actions that determines the long-run performance of the corporation." The basic components of the strategic management process are environmental scanning, strategy implementation, strategy formulation, and evaluation and control. Over time, many organizations have used strategic management concepts developing them overtime and using them successfully. As a team, we will center on explaining various aspects of strategic planning and the need for one and defining the ethical and discretionary responsibility which are known as social responsibilities for …show more content…
The differentiation strategy will focus on selling custom products to specialty markets to increase revenues through the use of new product innovations. Riordan will set specific production and revenue goals for this differentiation. To measure the effectiveness of this guideline Riordan will use return on investment (ROI). The ROI will measure profitability of all special orders and determine the effectiveness to increase organizational revenues. If this differentiation strategy fails to meet organizational goals adjustments in customer cost and production processes can be …show more content…
The feedback controls that a company uses can do a great deal to determine the direction that the company takes and their attitude in regard to the maintenance of their strategic plans. Riordan should use a combination of both behavioral controls along with input controls in order to assess and monitor their strategy. Responsibility Centers are another possibility open to Riordan in the need should arise. Responsibility centers are a type of control system that a Riordan could establish in order to monitor multiple divisions, projects or functions. Behavioral controls are used to specify how something is to be done according to particular rules, guidelines, and operating procedures set forth by top level management. Behavioral controls would give Riordan the ability to maintain their rigorous quality controls that Riordan strives for. This would also allow for them to uphold a responsive business attitude, giving Riordan the ability to accommodate their customer base quickly. Finally by using behavioral controls Riordan would be able to maintain an innovative and team-oriented working environment for their staff. Behavioral controls give Riordan the ability continue and expand on long standing business relationships in a variety of fields. Input
MGT/498
August 25, 2014
Paul Kramer
Strategic Plan Paper
According to (Wheelen & Hunger, 2010) "Strategic management is a set of managerial decisions and actions that determines the long-run performance of the corporation." The basic components of the strategic management process are environmental scanning, strategy implementation, strategy formulation, and evaluation and control. Over time, many organizations have used strategic management concepts developing them overtime and using them successfully. As a team, we will center on explaining various aspects of strategic planning and the need for one and defining the ethical and discretionary responsibility which are known as social responsibilities for …show more content…
The differentiation strategy will focus on selling custom products to specialty markets to increase revenues through the use of new product innovations. Riordan will set specific production and revenue goals for this differentiation. To measure the effectiveness of this guideline Riordan will use return on investment (ROI). The ROI will measure profitability of all special orders and determine the effectiveness to increase organizational revenues. If this differentiation strategy fails to meet organizational goals adjustments in customer cost and production processes can be …show more content…
The feedback controls that a company uses can do a great deal to determine the direction that the company takes and their attitude in regard to the maintenance of their strategic plans. Riordan should use a combination of both behavioral controls along with input controls in order to assess and monitor their strategy. Responsibility Centers are another possibility open to Riordan in the need should arise. Responsibility centers are a type of control system that a Riordan could establish in order to monitor multiple divisions, projects or functions. Behavioral controls are used to specify how something is to be done according to particular rules, guidelines, and operating procedures set forth by top level management. Behavioral controls would give Riordan the ability to maintain their rigorous quality controls that Riordan strives for. This would also allow for them to uphold a responsive business attitude, giving Riordan the ability to accommodate their customer base quickly. Finally by using behavioral controls Riordan would be able to maintain an innovative and team-oriented working environment for their staff. Behavioral controls give Riordan the ability continue and expand on long standing business relationships in a variety of fields. Input