Strategic PlanningIn a Competitive Marketplace

Strategic Planning Process Necessary for large corporations to

survive & prosper Budget/Forecast oriented planning is

no longer enough Strategic Planning

Defines objectives Assesses internal & external situation Strategies formulated & implemented

based on actual situation Evaluation leads to adjustments to

stay on track

The Planning ProcessMission & Objectives

Environmental

Scanning

Strategy Formulatio

nStrategy

Implementation

Evaluation & Control

The Sigmoid Curve

Typical Life Cycle

The Secret to Constant Growth:

(Start a New Life Cycle)

The Mission & Objectives Mission Statement - Describes the

Company’s Business Vision Unchanging values Purpose of company Visionary goals that guide the pursuit of

future opportunities Objectives – guided by company’s

vision Measurable financial & strategic

objectives Ex: Sales targets, market share,

reputation

Environmental Scan Includes the following:

SWOT Analysis Strengths/Weaknesses

Industry Analysis PEST Analysis (Political, Economic,

Social, Technological) Competitive Analysis

Rivalry Threat of Substitutes Buyer Power Supplier Power Barriers to Entry/Threats to Entry

Strategy Formulation Given environmental conditions,

Match strengths to opportunities identified

Address weakness and external threats Competitive Advantage - How will

you gain an advantage over your competition?

Cost Leadership Strategy – low cost producer

Differentiation Strategies Focus Strategies - segmenting

Strategy Implementation Implementation - programs, budgets,

and procedures to be used Implementation involves:

Organization of company resources Motivation of staff to achieve objectives Usually different people than those who

formulate the strategies How strategies are implemented can

have a significant impact on success Executives must communicate strategies

effectively & reasons behind them

Evaluation & Control Implementation of strategies

must be monitored and adjusted if needed

Evaluation & Control Process1. Define parameters to be measured2. Define target values for those

parameters3. Perform measurements4. Compare measured results to the

pre-defined standard5. Make necessary changes