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Discuss how and why strategic planning issues might differ in each of the following types of Organization a) The Small Business (b) Multinational Corporation.
Although all businesses might share the same principles they are all different in terms of strategic issues. These issues are discussed below:
The Small Business:
Are likely to be operating in a single or limited number of markets with a limited number of products or services. In terms of strategic planning these will be limited when compared with larger organizations. Because the businesses are small it is possible that they would be unable to carry out complex analysis and research. Most of the time it may be the founder of the firm or even senior managers are the ones making contact with the market place and whose experience is very influential and therefore their values and expectations will be important. The smaller the business it is more likely to have fewer specialist managers and often lack the skills and expertise in some areas required for effective strategic management, because of this they will have to turn to outside help and consultants for some of it’s strategic management skills
Unless the firm is specializing in particular market segment it will be subject to a lot of pressure from competitors, therefore their competitive strategy will have to be one where they will have to find opportunities that are well suited to their particular resources and competences (e.g.) it will not be able to compete on cost leadership. Finally the small businesses might be limited in their ability to raise capital. Based on the founder’s influence on the choice of markets and produ ...