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is strategic planning carried out at
How
different levels of the organization?
Strategic planning happens within the context of the organization
Corporate and Division Strategic Planning
All corporate headquarters
All corporate headquarters
1. Define the corporate mission.
All corporate headquarters
1. Define the corporate mission. 2. Establish strategic business units
All corporate headquarters
1. Define the corporate mission. 2. Establish strategic business units 3. Assign resources to each
strategic business unit.
All corporate headquarters
1. Define the corporate mission. 2. Establish strategic business units 3. Assign resources to each
strategic business unit. 4. Assess growth opportunities.
A little more about…
Defining the Corporate Mission
Organizations define corporate mission statements to share with employees and customers.
Organizations define corporate mission statements to share with employees and customers.
Good mission statements have following characteristics…
They focus on a limited number of goals
#1
They stress the company’s major policies and values
#2
They define the major competitive spheres within which
the company will operate
#3
They take a long-term view
#4
They are as short, memorable and meaningful
as possible
#5
A little more about…
Establishing Strategic Business Units
An SBU (Strategic Business Unit) has 3 characteristics…
It’s a single independent business,
or a collection of related businesses
#1
It has it’s own set of competitors
#2
It has a manager responsible for
strategic planning and profit performance
#3
A little more about…
Assigning Resources to each SBU
The management decides how to allocate corporate resources to each SBU
The management decides how to allocate corporate resources to each SBU
It can grow, ‘harvest’ (draw cash from) or hold on to the SBU.
Business Unit Strategic Planning
Business mission
The Business Unit Strategic Process
Each Business Unit defines it specific mission.
Business mission
SWOT analysis
The Business Unit Strategic Process
The overall evaluation of a company’s strengths, Weaknesses, opportunities and threats
Business mission
SWOT analysis
Goal formulation
The Business Unit Strategic Process
The goals must be arranged hierarchically, should be quantitative whenever possible, realistic and consistent.
Business mission
SWOT analysis
Goal formulation
Strategy formulation
The Business Unit Strategic Process
3 genetic strategies – Overall cost leadership, Differentiation and Focus
Business mission
SWOT analysis
Goal formulation
Strategy formulation
Program formulation
The Business Unit Strategic Process
Chalk out all the steps to be taken to attain objectives
Business mission
SWOT analysis
Goal formulation
Strategy formulation
Program formulation
Implem- entation
The Business Unit Strategic Process
Implement these steps
Business mission
SWOT analysis
Goal formulation
Strategy formulation
Program formulation
Implem- entation
Feedback And control
The Business Unit Strategic Process
Responding effectively to a changing environment
Thank You
Created by Prasid Mitra, Jadavpur University
During an internship by
Sameer Mathur, IIM Lucknow www.iiminternship.com
