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Objectives
1. Definitions of both strategic planning and strategy
2. An understanding of the strategy management process
3. A knowledge of the impact of environmental analysis onstrategy
formulation
4. Insights into how to use critical question analysis and SWOT analysis to
formulate strategy
5. An understanding of how to use business portfolio analysis and industry
analysis to formulate strategy
6. Insights into what tactical planning is and how strategic and tactical
planning should be coordinated
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Strategic Planning
Fundamentals of Strategic Planning
Defining Strategic Planning
Defining Strategy
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Strategic Planning
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Strategic Planning
Strategy Management
Environmental Analysis
The General Environment
The Economic Component
The Social Component
The Political Component
The Legal Component
The Technology Component
The Operating Environment
The Customer Component
The Competition Component
The Labor Component
The Supplier Component
The International Component
The Internal Environment
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Strategic Planning
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Strategic Planning
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Strategic Planning
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Strategic Planning
Strategy Management (continued)
Establishing Organizational Direction
Determining Organizational Mission
Developing a Mission Statement
The Importance of Organizational Mission
The Relationship Between Mission and Objectives
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Strategic Planning
Strategy Management (continued)
Strategy Formulation:Tools
Critical Question Analysis
What are the purposes and objectives of the organization?
Where is the organization presently going?
In what kind of environment does the organization now exist?
What can be done to better achieve organizational objectives in the future?
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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Strategic Planning
Strategy Management (continued)
Strategy Formulation:Tools (continued)
Business Portfolio Analysis
The BCG Growth-Share Matrix.
Strategic business units (SBUs)
1. It is a single business or collection of related businesses
2. It has its own competitors
3. It has a manager who is accountable for its operation
4. It is an area that can be independently planned for within the organization
Categorize each SBU as:
Stars
Cash Cows
Question Marks
Dogs
The GE Multifactor Portfolio Matrix.
Porters Model for Industry Analysis
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Strategic Planning
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Strategic Planning
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Strategic Planning
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Strategic Planning
Strategy Management (continued)
Strategy Formulation:Types
Differentiation
Cost Leadership
Focus
Sample Organizational Strategies
Growth
Stability
Retrenchment
Divestiture
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Strategic Planning
Strategy Management (continued)
Strategy Implementation
1. Interacting skill
2. Allocating skill
3. Monitoring skill
4. Organizing skill
Strategic Control
Monitor and evaluate the whole strategy management process
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Tactical Planning
Comparing and Coordinating Strategic and Tactical Planning
Basic differences between strategic and tactical planning:
1. Strategic plans are usually developed by upper-level management
and tactical plans by lower-level management
2. Facts to base strategic plans are more difficult to gather
3. Strategic plans are generally less detailed than tactical plans
4. Strategic plans cover a relatively long period of time
whereas tactical plans cover a relatively short period of time
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Tactical Planning
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Planning and Levels of Management
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Questions