BUS501: Strategic Management

2a. Describe how organizational goals are established

• What is the POLC framework?
• What does each step in the POLC framework involve?
• How is the POLC framework used to create the organizational goals?

The POLC framework stands for planning, organization, leading, and controlling. These steps are used to help develop larger organizational goals and determine how resources should be allocated to make these goals a reality. Planning involves setting the mission and vision, strategizing, and setting goals and objectives to help you reach your bigger mission. The organizing aspect revolves around organizational design, culture, and social networks. Leading means making good decisions, communicating well, and motivating your people to reach goals. The controlling aspect means creating systems and processes and ways you can measure the outcomes of your goals. All areas of the POLC framework are important because they are the steps you will take to set your goals.

To review, see Developing Mission, Vision, and Values.

 

2b. Identify internal and external factors that impact strategic planning

• What is SWOT analysis used for?
• What elements of SWOT would be considered internal factors of the organization?
• What elements of SWOT would be considered external factors of the organization?

A SWOT analysis is used ahead to help the organization see where their strengths, weaknesses, opportunities, and threats lie within the environment they operate. This helps set the stage for the strategic planning that will come later. Strengths and weaknesses would be considered internal factors, while opportunities and threats are external factors – both factors could positively or negatively affect your business.

To review, see An Overview of SWOT Analysis and How to Conduct a SWOT Analysis.

 

2c. Apply the appropriate strategic management tools based on internal and external analysis

• What do PEST and PESTLE stand for?
• Why is a PEST or PESTLE analysis used?
• What are the differences between PESTLE and PEST?

PEST stands for political, economic, social, and technological elements. A PEST analysis is performed before developing the strategic plan to consider external factors that may affect an organization. PESTLE stands for political, economic, sociological, technological, legal, and environmental elements. A PESTLE analysis is used similarly to a PEST analysis but adds legal and environmental elements. Using these tools in conjunction with SWOT analysis is a good basis for strategic planning.

To review, see PESTEL: A Framework for Considering Challenges.

 

Unit 2 Vocabulary 

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• controlling
• leading
• organizing
• PEST analysis
• PESTLE analysis
• planning
• POLC framework
• SWOT analysis