Rational Planning Model [Rpm] Essay

622 Words Apr 22nd, 2012 3 Pages
The rational planning model is a model commonly uses for the business evaluations and strategic decision making purposes. Specially in CIMA examination focus rational planning model as a critical subjects for management students.

But there are only few points to be remembering for rational planning model. The subject of Enterprise strategy [E3] and enterprise management [E2] are mostly focus on rational planning model.

Its containing of

Mission and Objectives Position Audit Environmental Analysis Co-operate appraisal Strategic option generation Strategic option evaluation and choice Strategic implementation Review and control

From review and control again continues with position audit and
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Most of the positioning approaches are help the organisation to identify the internal capabilities of the organisation to develop their strategies.
Co-operate appraisal

The co-operate appraisal is a gathering point of the mission and objectives, position audit and the environmental analysis.

In the co-operate appraisal the organisation considering their internal, external factors are according with their mission and vision statements. After the success of elevations, it will lead to strategic option evolution level.
Strategic option generation

The strategic options are a pool of options. These options are indentifies and suggested by the different levels of management and the individuals. The collections of the strategic options are evaluated by the senior level management before it suggested to the top management to decide. Therefore the strategic options should be very carefully evaluate according to the mission and vision statement.
Strategic option evaluation and choice

It’s the level to evaluate the strategic options collected by the above stage. It’s should consider the following approaches,

3 generic strategy of Michel porter.

Cost leadership, differentiation and focus.

Ansoff’s Matrix,

Market development, product development, penetration and diversification.

Alternative growth approaches,

Internal approach and external approach.

Options for non profit organisations. Evaluations,


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