SMP - Strategic Planning & VCA
Transcript of SMP - Strategic Planning & VCA
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Strategic Planning
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Overview
The Strategic Process Vision and Mission Objectives
Analysis Implementation Case Study
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Strategic Management Process
Craft aStrategy
to AchieveObjectives
Set
Objectives
Develop aStrategic
Vision
andMission
Implementand
ExecuteStrategy
Improve/ChangeRevise asNeededRevise asNeeded Improve/Change Recycleas Needed
Task 1 Task 2 Task 3 Task 4 Task 5
Monitor,Evaluate,and Take
CorrectiveAction
ExternalEnvironment Assessment
InternalEnvironmen
t Analysis
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Vision and Mission
Vision Who we want to be and where we want to go?
Mission Customer needs Customer groups
Company activities, technologies, competencies HOW WE CREATE VALUE Stakeholders and responsibilities
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Example
Empower peoplethrough great software
anytime, anyplace, andon any device.
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Example
DELTA AIRLINES
. . . . . . we want Delta to be theWORL DWI DE AI RL I NE OF CH OI CE.
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Example-Continued
WORLDWIDE, because we are and intend toremain an innovative, aggressive, ethical, andsuccessful competitor that offers access to the world atthe highest standards of customer service. We will
continue to look for opportunities to extend our reachthrough new routes and creative global alliances
DELTA AIRLINES
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Example-Continued
AIRLINE, because we intend to stay in the
business we know best -- air transportation andrelated services. We wont stray from our roots.We believe in the long-term prospects for
profitable growth in the airline industry, and wewill continue to focus time, attention, andinvestment on enhancing our place in that
business environment
DELTA AIRLINES
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Types of Objectives Required
Outcomes focused onimproving financial
performance
Outcomes focused onimproving long-term, competitive business
position
Financial ObjectivesStrategic Objectives
$
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Financial Objectives
Grow earnings per share 15% annually
Boost annual return on investment (or EVA)from 15% to 20% within three years
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Strategic Objectives
Increase firms market share
Overtake key rivals on quality orcustomer service or product performance
Attain lower overall costs than rivals
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Economic
Global
Socio-cultural
Political-legal Technological
DemographicIndustry andCompetitor
External Analysis
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Industry Analysis
PotentialNew
Entrants
RivalryAmong
CompetingSellers
Suppliersof KeyInputs
Buyers
Substitute Products(of firms in
other industries)
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Internal Analysis
A distinctive competence is acompetitively significant activitythat a company performs betterthan i ts competi tors
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Examples
Sony Corporation
Expertise in flat-panel displaytechnology
Toyota, Honda, Nissan
Low-cost, high-qualitymanufacturing capability andshort design-to-market cycles
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Company Value Chain
DistributionAnd
Outbound
Logistics
Operations
PurchasedSupplies
andInboundLogistics
Sales andMarketing Service
ProfitMargin
Product R&D, Technology, Systems Development
Human Resources Management
General Administration
Pr im ary A ct iv i t ies and Cos ts
Suppor tAct iv i t iesand Cos ts
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Building aCapableOrganization
Allocating Resources
Establishing Strategy-Supportive Policies
Instituting BestPractices forContinuousImprovement
InstallingSupportSystems
Tying Rewards
to Achievementof Key Strategic Targets
ExercisingStrategicLeadership
Shaping CorporateCulture to Fit Strategy
StrategyImplementers
Action Agenda
Implementing and Executing
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Case Study
Equipment Modernization What are we or will we be doing?
What is available? Cost Material, training, upgrade (phased implementation or)
Competing technology System integration
What are the trade offs? Efficiency vs effectiveness Risk assessment
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Case Study
What are we or will we be doing? Customers (students)
Profile of needs, abilities, resources Employers
Profile of needs (numbers, skills, entry level)
Staff Training, hiring, retaining
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Case Study
What is available? Competing technology and programs
Costs (initial, maintenance, upgrade) System integration LINK TO MISSION i.e. students, employers
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Case Study
What are the trade-offs Efficiency versus effectiveness
Risk assessment Acquisition options Supplier support
Insurance
Growth Flexibility