NAME AND DESCRIBE THE THREE REQUIREMENTS FOR EFFECTIVE STRATEGIC P...

16. Name and describe the three requirements for effective strategic planning.

ANS:

CONTINUAL PROCESS. Strategic planning should be an ongoing process because the environment

is continually changing and the firm's resources and capabilities are continually evolving.

CREATIVITY. Sound planning is based on creativity. Existing assumptions about the firm and the

environment should be challenged, and new rules of the game should be established. Developing

unique and visionary strategies that defy conventional wisdom also prevents managers from locking

into static and predictable options.

MANAGEMENT COMMITMENT. Perhaps the most critical element of successful strategic planning

is top management's support and participation. Without the involvement of top management, no

strategic plan can be effectively implemented.

PTS: 1

REF: 45

OBJ: 02-11

TOP: AACSB Communication

KEY: CB&E Model Strategy

MSC: BLOOMS Level V Synthesis