Strategic Planning

1
Strategic Planning

• An Overview

2
What is it?

• A process which helps managers answer questions
• What changes are happening in the environment
• What products or services should we be offering
• How can we offer them efficiently

3
Are their different kinds of strategy?

• Grand Strategy
• A general plan of action
• Growth
• Investing in expansion or acquiring new
  businesses
• Stability
• Slow down growth, get organized, control what we
  are doing
• Retrenchment
• Downsize
• Our current activities are no longer relevant to
  the environment
• Sell or close current businesses

4
Are their different kinds of strategy?

• Generic Strategy
• How will we compete in the market place
• Low cost
• Differentiation
• Wide
• Narrow or niche

5
Are their different kinds of strategy?

• Global or International
• Domestic Strategy
• Export Strategy
• Multi-country or Multidomestic
• Global

6
What is the purpose of Strategic planning?

• Develop a sustainable competitive advantage
• Competancies
• Core competance
• Distinctive competance
• Key success factors
• Sustainablitiy

7
How can we develop strategy

• Understand the environment
• Porters five forces
• Competitors
• Suppliers
• Customers
• New entrants
• Substitutes
• Opportunities and threats
• Key success factors

8
How can we develop strategy

• Understand our company
• Strengths and weaknesses
• Distinctive Competencies
• Our sustainable competitive advantages

9
Strategy Implementation

• Where the rubber meets the road

10
A dynamic process

• Involves changing the organization's behavior
• Requires vision
• Requires intuition
• Employee participation

11
Leadership

• Ability to influence organization's members to do
  things they wouldnt ordinarily do.
• It includes
• Motivation
• Persuasion
• Inclusion of everyone

12
Organizational Structure

• Involves relationships among members of the
  organization.
• Responsibilities
• Degree of Decentralization
• Find ways of organizing that dont have lines and
  boxes.
• Communication technology
• Globalization
• First Level efficiencies
• Social systems

13
Information and Control Systems

• Reward Systems that really reward performance
• Budgets
• Information systems
• Everyone has his own set of information
• The company places information where it is needed
• Information is everywhere for anyone to use it
• Rules, policies and procedures

14
Human Resources

• Finding and recruiting the right people
• Fit with the new culture
• Training
• Releasing people who dont fit the new culture

15
Problems with Globalization

• All the issues we have discussed have to be dealt
  with, complicated by distance and
• Communications
• Language
• Culture
• Currency
• Laws and customs