STRATEGIC PLANNING PROCESS

By Randy Taylor

Learning Objectives What is strategic planning

What is the strategic planning process

Identify the various steps in the strategic planning process

Corporate Strategy Formulation

Business Strategy Formulation

Strategy Implementation

Strategy Implementation Four Step Process

Strategic Planning Process and Why it is Important

What is Strategic Planning?

It is a set of procedures for making decisions about the organization’s long term goals and strategies.

Strategic Planning Process

Establishment of Mission, Vision, Goals

Analysis of External Opportunities & Threats

Analysis of Internal Strengths and Weaknesses

SWOT Analysis and Strategy Formulation

Strategy ImplementationStrategic Control

Strategic Planning Process Steps

Step 1: Establishment of Mission, Vision and Goals

Mission: is a statement that is a clear concise expression of the basic purpose of the organization.

Vision: it points to the future. It provides a perspective on where the organization is headed.

Goals: are the major targets or results relating to the organization’s long term survival, value, and growth.

Step 2: Analysis of External Opportunities and Threats

Stakeholders: groups and individuals who effect and are affected by the achievement of the organizations mission, goals and strategies.

Environmental Analysis: provides a map of the stakeholders and the ways they influence the organization.

Strategic Planning Process

Strategic Planning Process

Step 3: Analysis of Internal Strengths and Weakness

Resources: are inputs to production that can be accumulated over time to enhance the performance of the organization.

Core Capabilities: a unique skill and/or knowledge an organization possesses that gives it an edge over its competitors.

Benchmarking: process of assessing how well one company’s basic functions and skills compare with other companies.

Strategic Planning Process

Step 4: SWOT Analysis and Strategy Formulation

SWOT Analysis is a comparison of strengths and weakness, opportunities and threats that helps executive formulate strategy.

Strategy FormulationCorporate Strategy

Concentration Strategy

Vertical Integration

Concentric Diversification

Conglomerate Diversification

Functional Strategy

Strategy Formulation

Corporate Strategy: the set of business markers, or industries in which an organization competes and the distribution of resources among the entities.

Concentration: a strategy employed for an organization that operates a single business and competes in a single industry.

Strategy Formulation Vertical Integration: the acquisition of development

of new business that produce parts or components of the organization’s product.

Concentric Diversification: a strategy used to add new businesses that produce related pducts or are involved in related markets and activities.

Conglomerate Diversification: a strategy used to add new business that produce unrelated products or are involved in unrelated markets and activities.

Business Strategy Formulation

Business Strategy

Low-Cost Strategy

Differentiation Strategy

Functional Strategy

Business Strategy Formulation

Business Strategy: Defines the major actions by which a business competes in a particular industry or market.

Low-Cost strategy: a strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.

Differentiation Strategy: a strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

Functional Strategy: a strategy implemented by each functional area of the organization to support the organization’s business strategy, or the final step strategy formulation.

Strategy Implementation

Define Strategic TasksAsses organization

capabilitiesDevelop an

implementation agendaCreate an

implementation plan

Strategy Implementation Four Step Process

Step 1: Define strategic tasks by putting it in simple language help employees understand how they contribute to the organization.Step 2: Assess organization capabilities by forming a task force typically interviews employees and managers to identify specific issues that help or hinder effective implementation.Step 3: Developed an implementation agenda which shows how critical interdependencies are managed.Step 4: Create the implementation plan then monitor and control. This is under Strategic Control.

Strategic Planning Process and Why it is Important

The Strategic Planning Process is important because it defines your challenges, technological as well as human resources. It helps you to maintain realistic expectation, while keeping your eye on long term goals.

SummaryWe have learned what strategic planning is and its process. We can also identify the various steps in the process. We have learned the different corporate and business strategies and its formulations. We can now implement the strategies and its four step process. We also learned why strategic planning process is so important.

“Failing to plan is planning to fail” this phrase is attributed to Benjamin Franklin.

Resources• http://www.netmba.com/strategy/process/• www.methodframeworks.com/...strategy...strate

gy-operations/index.html

• Snell, S. Bateman, T. (2015). Management: leading and collaboration in a competitive world. McGraw-Hill higher education

QUESTIONS?

ACKNOWLEDGEMENTS