Strategic Planning

Workshop 2•Environmental Scan•Stakeholder Engagement•SWOT Analysis

Strategic Planning involves Identifying where the organisation is currently;

Assessing how the external environment is likely to affect the organisation;

Deciding what alternative actions are possible to reach the vision and mission;

Choosing an action or a number of actions; and

Implementing the choices,

making educated guesses about the future based on as much information as can be gathered .

Looking across the whole organisation

Strategic Planningfocused on time frames of three to five years into the future

Dependent on the rate of change affecting the organisation.

Is an externally driven process

The Steps in Strategic Planning1. Identify the organisation's mission, objectives and

strategies.2. Analyse the environment in which the organisation is

operating.3. Identify opportunities and threats to the organisation,4. Analyse the organisation's resources.5. Identify the strengths and weaknesses of the

organisation,6. Review the organisation's mission and objectives.7. Formulate strategies to achieve desired goals.8. Implement strategies,9. Evaluate the results,

Stakeholders

A stakeholder is any person, group, or entity that can place a claim on the organization's attention, resources, or output, or is affected by the output. Evaluate the involvement of of stakeholdersExternal / internal

Criteria used by them to assess organisational performance?How do they influence the organisation?What does the organisation need from them?How important are they?

Key ?

Internal stakeholders

Other Organisations

Customers

Suppliers

Government

UnionsCommunity

Environment

Financiers

Competitors

Stakeholder

Support Ethical issues Possible Expectations

Managementworking conditions, safety, privacy, conflict of interest, codes of conduct

etc short term profits, prestige, growth, personal power

Employeeshonesty, secrecy, confidentiality, compliance, appeal mechanisms

communication, consultation, equity and fairness of treatment and renumeration

Unionsemployee rights, good faith, open communications

employment, conditions of employment, consultation on change

Shareholdersfair disclosure, insider trading, profit vs non-profit goals

dividends, consistent and reliable growth, no surprises

Local

communities community economic and social obligations

employment, expertise, social and economic benefits

Financiersfair disclosure, insider trading, profit vs non-profit goals

profit and growth, consistent repayments

Societycorporate philosophy and behaviour, ecology and the environment

employment

Customerssafety, deceptive advertising, keeping corporate promises, fair disclosure

favourable buying terms, incentives, relationship, information

Governmentregulations and compliances, ethical vs legal position, lobbying, role of business in politics

jobs and tax revenue

Competitorsfair competition, industrial espionage, collusion, dumping, predatory pricing  

Environmental ScanMonitoring the environment is important because:

Responsiveness to environmental issues may be a source of competitive strength

Vulnerability to environmental influencesMost companies don’t have the resources to alter

their environment – they must respond to environmental changes

To be successful organisations need to understand their environment

Environmental analysis

•Political •Economic•Social•Technological

Political Factors

Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

tax policyemployment lawsenvironmental regulationstrade restrictions and tariffspolitical stability

Economic factorsEconomic factors affect the purchasing power of

potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:economic growthinterest ratesexchange ratesinflation rate

Social FactorsSocial factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:

health consciousnesspopulation growth rateage distributioncareer attitudesemphasis on safety

Technological factors

Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

R&D activityautomationtechnology incentivesrate of technological change

Business

Industry Environment

General Environment

Industry CharacteristicsSuppliers, Competitors,

Customers

Technological, Political/ legal. Social, Demographic, Economic, Global

Environmental Forces

BROAD BASED ENVIRONMENTAL

FORCES

Economic forces

Governmental forces

Technological forces Global forces

Social forces

Demographic forces

SWOT AnalysisSWOT analysis can give you a solid basis for developing both strategies and plans. It's a systematic way to examine : the organisation's internal strengths (S) and

weaknesses (W), and

Threats (T) and opportunities (O) in its external environment.

POSITIVE/ HELPFULto achieving the goal

NEGATIVE/ HARMFULto achieving the goal

INTERNAL

Originfacts/ factors of the organization

Strengths

Things that are good now, maintain them, build on them

and use as leverage

Weaknesses

Things that are bad now, remedy, change or stop them.

EXTERNAL

Originfacts/ factors of the environment

in which the organization

operates

Opportunities

Things that are good for the future, prioritize them, capture

them, build on them and optimize

Threats

Things that are bad for the future, put in plans to manage

them or counter them

Information Sources - Research

Working with employees to draw on their expertise – (e.g.

brainstorming, focus groups)

Obtaining data the organisation may already have - (e.g..

Competitor files)

Collection of original information on markets e.g customer surveys

Using Industry publications e.g census information, trade journals,

internet

Primary (original sources) Secondary (existing documentation)

Internal

External

Data Sources - InternalPrimary sources:

Focus groups Brainstorming sessions & meetings

Secondary sources:Financial Reports Statistical DatabasesAnnual ReportsPrevious Investment & Business plans

Data sources - ExternalTechnology: Industry & Trade Associations, Scientific

Reports & Journals, SuppliersLegal : Industry trade Associations, Social: ABS, Statistical informationSurvey of Consumers: ABS, Industry Surveys, CustomersDemographic: Economic bulletins, ABS, Business

Chamber, Industry SurveysEconomic: Economic Indicators, ABS, Bank Economic

Reports, Industry AssociationsIndustry Specific: Industry Surveys, ABS, Industry

Associations, Industry Journals