Strategic planning

Organizational levels of strategic planning

Corporate

SBU

Unit

Functional

Dimensions that define a business

Customer groups

Customer needs

Technology

Four planning activities

Defining the corporate mission

Establishing strategic business units

Assigning resources to each strategic business unit

Assessing growth opportunities

Corporate mission characteristics

They focus on a limited number of goals

They stress the company’s major policies and values

They define the major competitive spheres within which the company will operate

They take a long-term view

They are as short, memorable, and meaningful as possible

Strategic business units

SBU Characteristics

It is a single business, or a collection of related businesses, that can be planned separately from the rest of the company.

It has its own set of competitors.

It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.

Different SBUs

Strategic Planning Gap

Planning process

SWOT Analysis

Porter’s Generic Strategies

Overall cost leadership

Differentiation

Focus

Strategic Alliance

Product or services alliances

Promotional alliances

Logistics alliances

Pricing collaborations

Strategic Management Framework

These slides were created by Sharang Agarwal, IIT Kharagpur as part of an internship done under the guidance of Prof. Sameer Mathur, IIM Lucknow (www.IIMInternship.com)

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