Strategic Planning

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What is strategic planning?
Identify and explain different levels of planning in organisations.
Understand the relationship between corporate & functional plans.
What should be included in the strategic plan?
Evaluate the role of strategic planning.
What are the benefits of strategic planning to the firm?
What challenges are associated with strategic planning?

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Strategic Planning

  1. 1. © 2011 Berlin Asong. All rights reserved. 2
  2. 2. © 2011 Berlin Asong. All rights reserved. 3
  3. 3. © 2011 Berlin Asong. All rights reserved. 4
  4. 4. © 2011 Berlin Asong. All rights reserved. 5
  5. 5. © 2011 Berlin Asong. All rights reserved. 6
  6. 6. ?PlanningStrategic© 2011 Berlin Asong. All rights reserved. 7
  7. 7. A process in which a firmdefines its long-term goals; and defines a strategy to achieve them.© 2011 Berlin Asong. All rights reserved. 8
  8. 8. Corporate Plan Business units Plan Functional Plan Other sub-plans© 2011 Berlin Asong. All rights reserved. 9
  9. 9. © 2011 Berlin Asong. All rights reserved. 10
  10. 10. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Control Strategy Evaluation© 2011 Berlin Asong. All rights reserved. 11
  11. 11. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Control Strategy Evaluation© 2011 Berlin Asong. All rights reserved. 12
  12. 12. purposeof an organisation. © 2011 Berlin Asong. All rights reserved. 13
  13. 13. “ © 2011 Berlin Asong. All rights reserved. 14
  14. 14. © 2011 Berlin Asong. All rights reserved. 15
  15. 15. “To help people around &businesses throughout the world realise their full potential” © 2011 Berlin Asong. All rights reserved. 16
  16. 16. What do these three missionstatements have in common?© 2011 Berlin Asong. All rights reserved. 17
  17. 17. 1 benefit Each renders a humanity to .© 2011 Berlin Asong. All rights reserved. 18
  18. 18. 2 Each has abrand identity.© 2011 Berlin Asong. All rights reserved. 19
  19. 19. 3 Each has a purpose .© 2011 Berlin Asong. All rights reserved. 20
  20. 20. © 2011 Berlin Asong. All rights reserved. 21
  21. 21. 1Source of inspiration As a review tool in times of corporate crisis© 2011 Berlin Asong. All rights reserved. 22
  22. 22. “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time.” © 2011 Berlin Asong. All rights reserved. 23
  23. 23. “…to lower the cost of living for everyone.”© 2011 Berlin Asong. All rights reserved. 24
  24. 24. 2© 2011 Berlin Asong. All rights reserved. 25
  25. 25. © 2011 Berlin Asong. All rights reserved. 26
  26. 26. 1 Negligence© 2011 Berlin Asong. All rights reserved. 27
  27. 27. 2 Ignorance© 2011 Berlin Asong. All rights reserved. 28
  28. 28. 3 MS does not guaranteeorganisational effectiveness.© 2011 Berlin Asong. All rights reserved. 29
  29. 29. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Control Strategy Evaluation© 2011 Berlin Asong. All rights reserved. 30
  30. 30. … it’s about what the firmwants to become.© 2011 Berlin Asong. All rights reserved. 31
  31. 31. “In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing senseand simplicity to people .” © 2011 Berlin Asong. All rights reserved. 32
  32. 32. “To be the most creative organisation in the world.”© 2011 Berlin Asong. All rights reserved. 33
  33. 33. “To build artificial intelligence search-engines so powerful they would understand exactly everything that the user needs.”© 2011 Berlin Asong. All rights reserved. 34
  34. 34. What do these three visionstatements have in common?© 2011 Berlin Asong. All rights reserved. 35
  35. 35. 1 It’s futuristic© 2011 Berlin Asong. All rights reserved. 36
  36. 36. 2They are bold & ambitious.© 2011 Berlin Asong. All rights reserved. 37
  37. 37. 2 They are directional & have a long-term focus.© 2011 Berlin Asong. All rights reserved. 38
  38. 38. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Control Strategy Evaluation© 2011 Berlin Asong. All rights reserved. 39
  39. 39. SPECIFIC future states the firm wants to attain.© 2011 Berlin Asong. All rights reserved. 40
  40. 40. Sales revenues Earnings Dividends Rising stock price Cash flow Costs cut© 2011 Berlin Asong. All rights reserved. 41
  41. 41. Mary Coulter, (2010) “Strategic Management in Action”© 2011 Berlin Asong. All rights reserved. 42
  42. 42. © 2011 Berlin Asong. All rights reserved. 43
  43. 43. SMART Strive for goals/objectives.© 2011 Berlin Asong. All rights reserved. 44
  44. 44. © 2011 Berlin Asong. All rights reserved. 45
  45. 45. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Control Strategy Evaluation© 2011 Berlin Asong. All rights reserved. 46
  46. 46. Scanning and evaluatingthe state of the firm’s internal and external environments.© 2011 Berlin Asong. All rights reserved. 47
  47. 47. Internal Audit Organisation Markets: External Audit Consumers | Competitors Industry Macro- environment© 2011 Berlin Asong. All rights reserved. 48
  48. 48. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategic Implementation Strategic Evaluation© 2011 Berlin Asong. All rights reserved. 49
  49. 49. Formulate strategic choices Strategy Selection© 2011 Berlin Asong. All rights reserved. 50
  50. 50. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Control Strategy Evaluation© 2011 Berlin Asong. All rights reserved. 51
  51. 51. Why could it be said that strategy implementation is often the most difficultstage in the strategic-management process? © 2011 Berlin Asong. All rights reserved. 52
  52. 52. People Leadership Culture Business Environment Support Systems Structure© 2011 Berlin Asong. All rights reserved. 53
  53. 53. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategic Implementation Strategy Control Strategic Evaluation© 2011 Berlin Asong. All rights reserved. 54
  54. 54. Measures aimed at keeping goals & strategy are on track.© 2011 Berlin Asong. All rights reserved. 55
  55. 55. Established goals, targets, policies, expectations, etc.© 2011 Berlin Asong. All rights reserved. 56
  56. 56. Standards Standards StandardsEthics standards Cultural standards Sales standards Profit standards © 2011 Berlin Asong. All rights reserved. 57
  57. 57. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategic Implementation Strategy Control Strategic Evaluation© 2011 Berlin Asong. All rights reserved. 58
  58. 58. Sales revenue | Market share Net profit Operating cash flow Earnings per share Return on shareholder equity ROCE etc.© 2011 Berlin Asong. All rights reserved. 59
  59. 59. Customer & employee satisfaction Organisation learning Reputation Relationship with suppliers & other stakeholders etc.© 2011 Berlin Asong. All rights reserved. 60
  60. 60. © 2011 Berlin Asong. All rights reserved. 61
  61. 61. © 2011 Berlin Asong. All rights reserved. 62
  62. 62. 1 The process is information driven—could improve the quality of strategic decisions. © 2011 Berlin Asong. All rights reserved. 63
  63. 63. The analytical aspect of the process could improve the quality of strategic decisions.© 2011 Berlin Asong. All rights reserved. 64
  64. 64. 2 Improved managerial knowledge of business environment. © 2011 Berlin Asong. All rights reserved. 65
  65. 65. 3 Strategy is known in advance; critical resources could be made available for implementing strategy. © 2011 Berlin Asong. All rights reserved. 66
  66. 66. 4 better Firm is prepared to confront market risks; to exploit market opportunities. © 2011 Berlin Asong. All rights reserved. 67
  67. 67. 5 sales Could lead to improved and profitability . © 2011 Berlin Asong. All rights reserved. 68
  68. 68. To improve the effectiveness of management.© 2011 Berlin Asong. All rights reserved. 69
  69. 69. © 2011 Berlin Asong. All rights reserved. 70
  70. 70. 1 © 2011 Berlin Asong. All rights reserved. 71
  71. 71. 2 The quality of information that guide strategic decisions. © 2011 Berlin Asong. All rights reserved. 72
  72. 72. 3 The speed of environmental changes . © 2011 Berlin Asong. All rights reserved. 73
  73. 73. Out sync of with reality© 2011 Berlin Asong. All rights reserved. 74
  74. 74. Strategic planning becomes a frequent, on-going activity.© 2011 Berlin Asong. All rights reserved. 75
  75. 75. 4 It might hinder flexibility . © 2011 Berlin Asong. All rights reserved. 76
  76. 76. 5 It might hinder creativity . © 2011 Berlin Asong. All rights reserved. 77
  77. 77. 6 Not involving lower-levels staff into the process could trigger resistance. © 2011 Berlin Asong. All rights reserved. 78
  78. 78. 7 It presumes the absence of strategy failure . © 2011 Berlin Asong. All rights reserved. 79
  79. 79. It presumes future market forces are constant.© 2011 Berlin Asong. All rights reserved. 80
  80. 80. What guarantees a marketing strategy crafted in 2010 is the right strategy for the company in 2013? For example, the strategy for meeting our 2011-2015 goals.© 2011 Berlin Asong. All rights reserved. 81
  81. 81. © 2011 Berlin Asong. All rights reserved. 82
  82. 82. © 2011 Berlin Asong. All rights reserved. 83
  83. 83. © 2011 Berlin Asong. All rights reserved. 84
  84. 84. Confident© 2011 Berlin Asong. All rights reserved. 85
  85. 85. Highly Predictable© 2011 Berlin Asong. All rights reserved. 86
  86. 86. Longer© 2011 Berlin Asong. All rights reserved. 87
  87. 87. High© 2011 Berlin Asong. All rights reserved. 88
  88. 88. Top Execs© 2011 Berlin Asong. All rights reserved. 89
  89. 89. © 2011 Berlin Asong. All rights reserved. 90
  90. 90. © 2011 Berlin Asong. All rights reserved. 91
  91. 91. Uncertainty© 2011 Berlin Asong. All rights reserved. 92
  92. 92. Less Predictable© 2011 Berlin Asong. All rights reserved. 93
  93. 93. Shorter© 2011 Berlin Asong. All rights reserved. 94
  94. 94. Short© 2011 Berlin Asong. All rights reserved. 95
  95. 95. Cross-functional teams© 2011 Berlin Asong. All rights reserved. 96
  96. 96. © 2011 Berlin Asong. All rights reserved. 97
  97. 97. © 2011 Berlin Asong. All rights reserved. 98
  98. 98. Corporate Plan Business units Plan Functional Plan Other sub-plans© 2011 Berlin Asong. All rights reserved. 99
  99. 99. © 2011 Berlin Asong. All rights reserved. 100
  100. 100. © 2011 Berlin Asong. All rights reserved. 101
  101. 101. © 2011 Berlin Asong. All rights reserved. 102
  102. 102. © 2011 Berlin Asong. All rights reserved. 103
  103. 103. © 2011 Berlin Asong. All rights reserved. 104

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