From the course: Certification Prep: SHRM-CP

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HR strategic planning: Development

HR strategic planning: Development

From the course: Certification Prep: SHRM-CP

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HR strategic planning: Development

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- The second stage of the strategic planning process is development. This is when a business figures out how it will be competitive. It's the time when the company is answering the questions of how and where they will compete in the market. Periodically, existing companies may need to rethink the way they do business or charge for services, and that can affect their competitive advantage. For example, if the price of fuel increases significantly, the airline industry may have to charge more for tickets. This is an example of an external source forcing an organization to change strategy. Some of the foundational competitive strategies are cost leadership, differentiation, and focus. Cost leadership is a strategy where companies attempt to offer the same product at the lowest price. Differentiation strategy is where a company decides to offer a product or service at a higher price, but in a different way, like higher quality or faster delivery. Focus strategies can be cost leadership or…

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