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Strategic Planning 
Presented by: Sara Mostafa
Strategic planning
Agenda: 
A- What is strategic planning? 
B- Evaluating current strategic posture 
• What is Strategic Planning? 
• Benefits & pitfalls of Strategic Planning 
• Strategic Planning Process & Strategic Decision Making Process 
• Evaluating the current strategic posture 
• Mission 
• Vision 
• Objectives 
• Environmental Variables 
• Strategy 
• Policy
Let’s start planning …..
What is Strategic Planning? 
Planning 
Is setting the direction for 
something. 
Strategy 
is the long term direction of 
an organization 
Is the PROCESS by which the GUIDING 
MEMBERS of an organization ENVISION its 
future and develop the necessary 
PROCEDURES AND OPERATIONS to achieve 
that future. 
Strategic Management 
That set of managerial 
decisions and actions that 
determines the long-run 
performance of a corporation 
Strategic Planning 
Making fundamental 
decisions that guide 
organizations to a developed 
vision of the future.
Benefits of Strategic Planning 
Resources 
Direction 
Objectives 
Environment 
Budget 
Growth
Pitfalls in Strategic Planning 
Top management support 
Standard for measuring performance. 
Communicate plan 
Involve key employees, delegate a “Planner”. 
Collaborative climate & change.
Strategic Management Process 
Environmental 
Scanning 
Strategy 
Formulation 
Strategy 
Implementation 
Evaluation & 
Control
Strategic Planning Process - 
Three Basic Questions 
Long- 
Term 
View 
Situation 
Analysis 
Strategy 
1: Where Do We Want To Go? 
2: Where Are We Now? 
3: What Must We Do To Close The Gap?
5(b) 6(a) 6(b) 7 8 
10 
Strategic Decision-Making Process 
Review and 
Revise as 
Necessary: 
Mission 
 Objectives 
Generate 
and 
Evaluate 
Strategic 
Alterna-tives 
Select 
and 
Recommend 
Best 
Alternative 
Implement 
Strategies: 
 Programs 
 Budgets 
 Procedures 
Evaluate 
and 
Control 
Strategy 
Implementation 
Step 7 
Analyze 
External 
Factors: 
 Opportun-ities 
 Threats 
Scan and 
Assess 
Internal 
Environment: 
 Structure 
Culture 
Resources 
Select 
Strategic 
Factors 
(SWOT) 
in Light of 
Current 
Situation 
Analyze 
Internal 
Factors: 
 Strengths 
 Weak-nesses 
Scan and 
Assess 
External 
Environment: 
Societal 
Task 
Evaluate 
Current 
Performance 
Results 
Examine and 
Evaluate the 
Current: 
 Mission 
Objectives 
 Strategies 
 Policies 
Review 
Corporate 
Governance: 
 Board of 
Directors 
 Top Man-agement 
Environmental Scanning & 
Strategy Formulation: 
Steps 1 – 6 
3(a) 
1(a) 1(b) 2 5(a) 
4(a) 
3(b) 
4(b) 
Evaluation 
and 
Control: 
Step 8
Evaluate current strategic Posture 
Mission – Vision – Objectives – 
Strategies – Policies
Mission Statement: 
• The purpose or reason for the corporation’s 
existence. It may be narrow or broad in scope. 
Vision Statement: 
• Is the desired future state of the organization.
Objective 
The end results of planned activity. 
They state WHAT is to be accomplished by WHEN. 
They should be quantified, if possible. 
It should be SMART. 
WHICH Objectives?
Environmental Variables 
Societal Environment 
Economic 
Forces 
Suppliers 
Employees/ 
Labor Unions 
Technological 
Forces 
Sociocultural 
Forces 
Political-Legal 
Forces 
Task 
Environment 
(Industry) 
Internal 
Environment 
Structure 
Culture 
Resources 
Shareholders 
Governments 
Customers 
Creditors 
Communities 
Competitors 
Special 
Interest 
Groups 
Trade Associations
Current Strategy 
Corporate – Business – Functional
Corporate 
Business Lines
Functions
Corporate Strategy 
Stability 
Pause / Proceed 
with caution 
No Change 
Profit 
Growth 
Concentration 
Vertical 
Horizontal 
Diversification 
Concentric 
Conglomerate 
Retrenchment 
Turnaround 
Captive 
Company 
Sell-out / 
Divestment 
Liquidation / 
Bankruptcy
BBuusisnineesss sS Strtarateteggieys 
Cooperative 
Collusion 
(explicit / tacit) 
Strategic 
Alliances 
Competitive 
Timing Tactics 
First Mover 
Late Mover 
Location 
Offensive 
Defensive
Porter’s Business Competitive Strategy 
Competitive 
Scope 
Competitive Advantage 
Low Cost 
Product 
Uniqueness 
Broad Target Cost Leadership Differentiation 
Narrow Target Cost Focus 
Focused 
Differentiation
Functional Strategies 
Core 
Competencies 
Customer 
values 
Competitor 
Unique 
Extendibility 
Financial Marketing 
Market 
Development 
Product 
Development 
Diversification 
Market 
Penetration 
R & D Value Chain
Policies 
• The BROAD GUIDELINES for implementation, decision-making 
& actions 
• Part of corporate culture & can last more than strategies. 
• Restrict top management strategic options 
• Ex: “The Customer is always right” 
• A change in strategy must be followed by a change in policies 
• Managing policies is one way to manage the corporate culture
Conclusion 
5(b) 6(a) 6(b) 7 8 
Review and 
Revise as 
Necessary: 
Mission 
 Objectives 
Generate 
and 
Evaluate 
Strategic 
Alterna-tives 
Select 
and 
Recommend 
Best 
Alternative 
Implement 
Strategies: 
 Programs 
 Budgets 
 Procedures 
Evaluate 
and 
Control 
Strategy 
Implementation 
Step 7 
Analyze 
External 
Factors: 
 Opportun-ities 
 Threats 
Scan and 
Assess 
Internal 
Environment: 
 Structure 
Culture 
Resources 
Select 
Strategic 
Factors 
(SWOT) 
in Light of 
Current 
Situation 
Analyze 
Internal 
Factors: 
 Strengths 
 Weak-nesses 
Scan and 
Assess 
External 
Environment: 
Societal 
Task 
Evaluate 
Current 
Performance 
Results 
Examine and 
Evaluate the 
Current: 
 Mission 
Objectives 
 Strategies 
 Policies 
Review 
Corporate 
Governance: 
 Board of 
Directors 
 Top Man-agement 
Environmental Scanning & 
Strategy Formulation: 
Steps 1 – 6 
3(a) 
1(a) 1(b) 2 5(a) 
4(a) 
3(b) 
4(b) 
Evaluation 
and 
Control: 
Step 8
Thank You 

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WAM Corporate Presentation Mar 25 2024.pdf
 

Strategic planning

  • 1. Strategic Planning Presented by: Sara Mostafa
  • 3. Agenda: A- What is strategic planning? B- Evaluating current strategic posture • What is Strategic Planning? • Benefits & pitfalls of Strategic Planning • Strategic Planning Process & Strategic Decision Making Process • Evaluating the current strategic posture • Mission • Vision • Objectives • Environmental Variables • Strategy • Policy
  • 5. What is Strategic Planning? Planning Is setting the direction for something. Strategy is the long term direction of an organization Is the PROCESS by which the GUIDING MEMBERS of an organization ENVISION its future and develop the necessary PROCEDURES AND OPERATIONS to achieve that future. Strategic Management That set of managerial decisions and actions that determines the long-run performance of a corporation Strategic Planning Making fundamental decisions that guide organizations to a developed vision of the future.
  • 6. Benefits of Strategic Planning Resources Direction Objectives Environment Budget Growth
  • 7. Pitfalls in Strategic Planning Top management support Standard for measuring performance. Communicate plan Involve key employees, delegate a “Planner”. Collaborative climate & change.
  • 8. Strategic Management Process Environmental Scanning Strategy Formulation Strategy Implementation Evaluation & Control
  • 9. Strategic Planning Process - Three Basic Questions Long- Term View Situation Analysis Strategy 1: Where Do We Want To Go? 2: Where Are We Now? 3: What Must We Do To Close The Gap?
  • 10. 5(b) 6(a) 6(b) 7 8 10 Strategic Decision-Making Process Review and Revise as Necessary: Mission  Objectives Generate and Evaluate Strategic Alterna-tives Select and Recommend Best Alternative Implement Strategies:  Programs  Budgets  Procedures Evaluate and Control Strategy Implementation Step 7 Analyze External Factors:  Opportun-ities  Threats Scan and Assess Internal Environment:  Structure Culture Resources Select Strategic Factors (SWOT) in Light of Current Situation Analyze Internal Factors:  Strengths  Weak-nesses Scan and Assess External Environment: Societal Task Evaluate Current Performance Results Examine and Evaluate the Current:  Mission Objectives  Strategies  Policies Review Corporate Governance:  Board of Directors  Top Man-agement Environmental Scanning & Strategy Formulation: Steps 1 – 6 3(a) 1(a) 1(b) 2 5(a) 4(a) 3(b) 4(b) Evaluation and Control: Step 8
  • 11. Evaluate current strategic Posture Mission – Vision – Objectives – Strategies – Policies
  • 12. Mission Statement: • The purpose or reason for the corporation’s existence. It may be narrow or broad in scope. Vision Statement: • Is the desired future state of the organization.
  • 13. Objective The end results of planned activity. They state WHAT is to be accomplished by WHEN. They should be quantified, if possible. It should be SMART. WHICH Objectives?
  • 14. Environmental Variables Societal Environment Economic Forces Suppliers Employees/ Labor Unions Technological Forces Sociocultural Forces Political-Legal Forces Task Environment (Industry) Internal Environment Structure Culture Resources Shareholders Governments Customers Creditors Communities Competitors Special Interest Groups Trade Associations
  • 15. Current Strategy Corporate – Business – Functional
  • 18. Corporate Strategy Stability Pause / Proceed with caution No Change Profit Growth Concentration Vertical Horizontal Diversification Concentric Conglomerate Retrenchment Turnaround Captive Company Sell-out / Divestment Liquidation / Bankruptcy
  • 19. BBuusisnineesss sS Strtarateteggieys Cooperative Collusion (explicit / tacit) Strategic Alliances Competitive Timing Tactics First Mover Late Mover Location Offensive Defensive
  • 20. Porter’s Business Competitive Strategy Competitive Scope Competitive Advantage Low Cost Product Uniqueness Broad Target Cost Leadership Differentiation Narrow Target Cost Focus Focused Differentiation
  • 21. Functional Strategies Core Competencies Customer values Competitor Unique Extendibility Financial Marketing Market Development Product Development Diversification Market Penetration R & D Value Chain
  • 22. Policies • The BROAD GUIDELINES for implementation, decision-making & actions • Part of corporate culture & can last more than strategies. • Restrict top management strategic options • Ex: “The Customer is always right” • A change in strategy must be followed by a change in policies • Managing policies is one way to manage the corporate culture
  • 23. Conclusion 5(b) 6(a) 6(b) 7 8 Review and Revise as Necessary: Mission  Objectives Generate and Evaluate Strategic Alterna-tives Select and Recommend Best Alternative Implement Strategies:  Programs  Budgets  Procedures Evaluate and Control Strategy Implementation Step 7 Analyze External Factors:  Opportun-ities  Threats Scan and Assess Internal Environment:  Structure Culture Resources Select Strategic Factors (SWOT) in Light of Current Situation Analyze Internal Factors:  Strengths  Weak-nesses Scan and Assess External Environment: Societal Task Evaluate Current Performance Results Examine and Evaluate the Current:  Mission Objectives  Strategies  Policies Review Corporate Governance:  Board of Directors  Top Man-agement Environmental Scanning & Strategy Formulation: Steps 1 – 6 3(a) 1(a) 1(b) 2 5(a) 4(a) 3(b) 4(b) Evaluation and Control: Step 8

Editor's Notes

  1. “Without a strategy the organization is like a ship without a rudder, going around in circles”. “ All men can see the tactics whereby I conquer, but what none can see is the strategy out of which great victory is evolved” Planning Is setting the direction for something. STRATEGY is the direction of an organization over the long term, which achieves advantage of the organization through its configuration of resources within a changing environment and to fulfill stakeholder expectations STRATEGY is the long term direction of an organization Strategic Management That set of managerial decisions and actions that determines the long-run performance of a corporation Strategic Planning Making fundamental decisions that guide organizations to a developed vision of the future. Strategic planning is the PROCESS by which the GUIDING MEMBERS of an organization ENVISION its future and develop the necessary PROCEDURES AND OPERATIONS to achieve that future. The strategic plan sets the stage for creating the marketing plan and the financial plan. The risk analysis section of the strategic plan includes the development of a succession plan.
  2. Benefits of Strategic Planning: Properly allocating resources to the most beneficial Activities. Analyze internal environment & its impact. Analyze external environment & its impact. Setting the appropriate direction & roadmap of the organization Setting more realistic business objectives. Growth can be accelerated and improved Building cross functional activities across the organization. Gain control over operational problems and poor performing areas. Develop a frame of reference for budgets & short-range operating plans.
  3. Pitfalls in Strategic Planning Using SP to gain control over decisions and resources Doing SP only to satisfy accreditation or requirements Quick move from mission development to strategy formulation Failing to communicate the plan to employees Making intuitive decisions conflicting with the formal plan Top management not supporting the strategic planning process Failing to use plans as a standard for measuring performance Delegating planning to a ”planner” rather than involving all managers Failing to involve key employees in all phases of planning Failure to create a collaborative climate supportive of change Viewing planning to be unnecessary or unimportant Becoming so involved with current problems that no planning is done Being so formal in planning that flexibility and creativity are stifled
  4. Strategy Formulation: The process of developing long-range plans to deal effectively with environmental opportunities and threats in light of corporate strengths and weaknesses Composed of: Mission Objectives Strategies Policies Strategy Implementation The process of putting strategies and policies into action through the development of Programs: A statement of activities or steps needed to accomplish a single-use plan Budgets: A statement of a corporation’s program in dollar terms Procedures: A system of sequential steps or techniques that describe in detail how to perform a particular task or job Evaluation & Control: The process of monitoring corporate activities and performance results so that actual performance can be compared with desired performance
  5. Strategic Planning Process - Three Basic Questions Where is the organization now? If no changes are made, where will the organization be in one, two, five or ten years? Are the answers acceptable? If the answers are not acceptable, what specific actions should management undertake? What are the risks and payoffs involved? Triggering Events for Strategic Change: New CEO External intervention Threat of a change in ownership Performance gap Strategic Inflection Point
  6. Mission Elements: Customers, Products & Services, Markets, Technology, Survival growth profit, Philosophy, Self-concept, Public Image & Employees. Vision Elements: Defining what business the company is presently in. Deciding on a long-term strategic courses for the company to pursue Communicating the vision in ways that are clear, existing & inspiring
  7. Objectives: the end results of planned activity. They state what is to be accomplished by when. They should be quantified, if possible. SMART Objectives: Specific Measurable Achievable/Attainable Rational Time Bound Areas of setting objectives: Profitability (Net Profits) Efficiency (low costs) Growth (increase in total assets) Shareholder wealth (dividends plus stock price appreciation) Utilization of resources (return on investment or equity) Reputation (being considered a top firm) Contribution to employees Contribution to society Market leadership Technological leadership Survival Personal needs of top management
  8. Task Environment: Composed of Groups in environment that directly affect or are affected by the organization’s operations (Often called industry) Structure: The way a corporation is organized in terms of communication, authority, and workflow Corporate Culture: Collection of beliefs, expectations, and values learned and shared by members and transmitted from one generation of employees to another Resource: An asset, competency, process, skill, or knowledge controlled by the corporation
  9. Corporate Strategy: Corporation’s overall direction and the management of its businesses
  10. Business Strategy: Emphasizes improving the competitive position of a corporation’s products or units
  11. Functional (operational) strategy: Maximizes resource productivity
  12. Policies: The broad guidelines for implementation Policies provide guidance for decision-making & actions Part of corporate culture & can last more than strategies. Restrict top management strategic options Ex: “The Customer is always right” A change in strategy must be followed by a change in policies Managing policies is one way to manage the corporate culture