STRATEGIC PLANNING

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STRATEGIC PLANNING

• CSUN/ COBAE
• Advanced Management Accounting
• PROF. KIANI

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Cost Management Systems

• Cost management plays a an important role in
  strategic decision making.
• Changes in the manufacturing environment brought
  about by
• (1) Customer focus (orientation)using
• value chain concept (internal external)
• (2) Total quality management,
• (3) Time as a competitive factor,
• (4) The advanced Manufacturing
  environment,
• Activity-Based management (ABM),
  Activity- Based
• Costing (ABC) , Computer Integrated
  Manufacturing,
• Just-In Time (JIT) Manufacturing,
• The Theory of Constraints (TOC)
• (5) Advances in Information Technology
• (6) Growth of the Service Industry
• (7) Global Competition----
• Cost information is critical in formulating and
  choosing strategies as well as in evaluating the
  continued viability of strategic positions.

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STRATEGIC PLANNING

• Strategic planning is a management tool. As a
  management tool, it is used with Strategic
  thinking In an organization for the following
  purposes
• Assessing the external environment of a business
• Judging a companys strengths and weaknesses
• Establishing a vision and a mission along with
  goals and
• objectives
• Implementing strategies to accomplish the stated
  goals and objectives
• . Measuring how effectively and efficiently the
  mission is being
• accomplished through the strategies,
  objectives, and goals
• . Measuring changes in the firms external and
  internal
• environment such as regulation, politics (local,
  national International) ,competition,
  technology, customers, out sourcing
• . Altering the mission, goals, objectives, and
  strategies as appropriate.

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ContinuedSTRATEGIC PLANNING

• To succeed in the today's competitive business
  environment the organization must have
• VISION 5-10-30 YEARS
• MISSION 3-5 YEARS
• STRATEGY 2-3 YEARS
• GOALS 1-1.5 YEARS
• RSULTS 12 MONTHS
• ACT 90 DAYS

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Continued STRATEGIC PLANNING

• Management must set goals for organization such
  as
• Profit maximization
• Cost minimization
• Capital structure
• Human resources
• Market share
• Global business competition
• Total quality management

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Continued STRATEGIC PLANNING

• CUSTOMERS SATISFACTION
• INNOVATION
• PRODUCT LEADERSHIP
• CONTINUOUS IMPROVEMENT
• SOCIAL RESPONSIBILITY
• To carry out above goals management must make
  set of decisions and applying critical strategic
  planning by using relevant information about
• What to do?
• Why to do it?
• How to do it?

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Continued STRATEGIC PLANNING

• How do we fill VISION?
• By achieving our MISSION.
• How do we achieve our MISSION?
• By executing our product (services)/market
  strategy
• How do we execute our product (services)/market
  strategy?
• With Strategic Goals

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Continued STRATEGIC PLANNING

• Will the status quo get the job done?
• It never is.
• How do our strategic goals change the
• status quo?
• By producing results
• How will we produce results?
• By taking action now

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Evaluating the Strategic Planning Processby
applying Five Characteristics ofStrategic
Thinking

• Ability To See the Whole Picture
• A Sense of Direction or Destiny-View of
• the future
• Openness to New Experiences
• Dealing With Gap Between Reality
• and Future
• Use of Creative and Critical
• Thinking

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