This document outlines the strategic planning cycle and process. It discusses conducting external and internal analyses to understand opportunities, threats, strengths, and weaknesses. This includes a SWOT analysis and examining the 5 key strategic questions of what an organization wants to achieve, where it will operate, how it will win, if it has the capabilities required, and what enablers are needed. The document emphasizes the importance of ongoing monitoring and learning to ensure the strategic plan supports long-term sustainability.

1. Strategic planning and sustainability
Workshop
Kuala Lumpur, March 27, 2012
MACD Workshop v5 (AV).ppt 1

2. The strategic planning cycle – How it is supposed to work
Strategy selection Execution planning
External
Strategic analysis
scanning Execution
Learning Monitoring
MACD Workshop v5 (AV).ppt 2

3. Sound strategies ought to be based on rigorous fact-based analysis
and unbiased decision making
Process of strategic management
Strategic analysis Strategy selection Strategy implementation
External Objectives
analysis Strategy People, resources,
options structures, processes,
culture needed
Opportunities
Threats Converting strategy
Evaluation Strategy into operational plans
Strengths
Weaknesses
Making people act in
line with strategy
Strategy decision:
Internal Choose a strategy Monitoring, learning,
analysis correcting
MACD Workshop v5 (AV).ppt 3

4. Going through the strategic planning cycle – How often?
• Daily: "normal" external events might require new
strategic responses, effecting the whole cycle
• Monthly: KPI reports etc.
• Annually: budgeting and investment planning and
strategic planning must be consistent and aligned
• Occasionally: for example when:
– Company in trouble
– Major external shocks
– New owners etc.
MACD Workshop v5 (AV).ppt 4

5. Winning strategies provide answers to five key questions
Strategic key questions
What do we Where do we How do we Have we got, Which
want? play? win? what it enablers do
takes? we need?
Corporate
Strategy
Parenting
Advantage
Business
Strategy
Competitive
Advantage
Targets and Markets USPs Capabilities & Structures
ambitions Resources and systems
INHERENT POTENTIAL ABILITY TO ACHIEVE
POTENTIAL
MACD Workshop v5 (AV).ppt 5

6. Are we organized strategically = Aimed at long term sustainability?
All options found Are planners capable of
and considered understanding execution
"fairly"? complications?
Daily? Angles
wide enough?
Right managers? If not,
what is done about it?
Analytical skills
good and un- Do KPIs measure the
biased enough? right things? And are
measurements correct?
What are the mechanisms for
continuous learning? Are they
effective?
MACD Workshop v5 (AV).ppt 6

7. C. SWOT analysis
MACD Workshop v5 (AV).ppt 7

8. The SWOT analysis aims to provide a sound analytical basis for
identification and selection of strategy options
SWOT analysis
STRENGTHS WEAKNESSES
Build on strengths and Overcome weaknesses and Internal
intensify competitive turn them into strengths analysis
advantage
Closely track environment Early recognize threatening
and take advantage of situations/events/factors
upcoming events and formulate action plan to External
minimize risks analysis
OPPORTUNITIES THREATS
MACD Workshop v5 (AV).ppt 8

9. The analysis of internal strengths and weaknesses looks at all
resources and aspects of a company and its success factors
• Define current and future potential
1 EXTERNAL ANALYSIS • Evaluate the subjective assessment of the defined
Market
potential and attempt to make it objective
Customers/ Compe-
trends titors – Comparing the potential with the industry
3 SWOT ANALYSIS
3.
Sales channel development or the development of the most
structures
• Success factors important competitors
• Strengths/weaknesses – Weighing the corporate data against the business
2 INTERNAL ANALYSIS
Products/ranges
• Opportunities/threats standards
Organi-
zation/
– Examining the analyzed strengths and weaknesses
Core com-
petencies framework with respect to the corporate / public goals
Sales/profit
development
• Determine the success factors of the company /
institution
MACD Workshop v5 (AV).ppt 9

10. The external analysis examines the environment of a company and
determines opportunities and threats
• Monitor and examine trends and developments and
determine their relevance
1 EXTERNAL ANALYSIS – Political, economical
Market
– Markets, consumers
Customers/
trends
Compe-
titors
– Competitors (incl. up/down value chain)
3.
3 SWOT ANALYSIS – Social, demographic, cultural
Sales channel
structures – Technical, technologies
• Success factors
– Legal, regulatory
• Strengths/weaknesses
2 INTERNAL ANALYSIS – Shocks, events, disasters, weather etc.
• Opportunities/threats
Products/ranges
• Analyze / assess their significance for the company
Organi-
Core com-
petencies
zation/
framework
• Recognize future opportunities and threats as quickly
Sales/profit
as possible and react to a changing environment by
development
– Realizing external signals in "real time"
– Collecting information continuously and analyzing it
immediately drawing the necessary conclusions
from it
MACD Workshop v5 (AV).ppt 10

11. The number of external factors driving long term business success
are many
Increased barriers to entry
from growing societal and
environmental standards
Threat of new
entrants
Ecological Socio-demographic
environment environment
Greater
strategic Growing
partnerships Suppliers’ Customers’ loyalty
with
suppliers to bargaining power Business bargaining power
towards
‘responsible’
address S&E suppliers
risks
Political and legal Technological
environment environment
Rivalry among Threats of
competitors substitutions
Power of reputation as Greater differentiation
a business asset. in S&E performance of
Comparative advantage product/services
Source: Porter, 1980
MACD Workshop v5 (AV).ppt 11

12. The SWOT matrix should group and categorize key internal strengths
and weaknesses as well as external opportunities and threats
Internal Strengths Weaknesses Opportunities Threats External
Sales and •… •…
marketing •… •… Social, demographic
Operations •… •…
•… •… Technological
Human •… •…
resources •… •… Economic
R&D and •… •…
technology ??
•… •… Market, customers
Financial and •… •…
accounting
Purchasing, •… •… Political/legal/regulatory
•… •…
suppliers
Coordination Industry and
•… •… •… •…
mechanisms competition
Links and interactions between internal and external factors will have to be further investigated in order to develop
strategic options
Source: Roland Berger MACD Workshop v5 (AV).ppt 12

13. E. Strategy planning and sustainability
MACD Workshop v5 (AV).ppt 13

14. … but, there is consensus that sustainability requires conciliation of
environmental, social and economic demands
Society
Bearable Equitable
Sustainable
Environment Economy
Viable
Source: World Summit 2005, Roland Berger MACD Workshop v5 (AV).ppt 14

15. But, sustainability must be linked to the corporate strategy
Any sustainability strategy that is
not closely linked to the core of
the organization – the business –
will fail
Source: Roland Berger MACD Workshop v5 (AV).ppt 15

16. Generally, sustainability initiatives support one of three strategic
goals
1 MANAGING
RISK
• Many already address some ecological or social risks by establishing environmental
management or whistle blower protection
• Companies should integrate sustainability issues more actively into risk management to
indentify gaps and act to become less vulnerable
2 ENHANCING
BUSINESS
• Companies that want to grow profitably need to develop and nurture a solid reputation and a
healthy internal culture around sustainability
• Reputation is becoming an increasingly important differentiation factor on both customer and
employment markets
• Creating a healthy internal culture is critical to attracting and retaining the right people to
provide continuous value creation and cost savings
3 GENERATING
BUSINESS
• With forward-thinking, business opportunities can be generated through activities that better
society and preserve our planet
• Social and environmental needs are emerging in B2B and B2C markets, demographic profiles
are changing, creating new customer segments
• Companies can profit through innovations to fulfill these new needs and values by actively
targeting these segments
Source: Roland Berger MACD Workshop v5 (AV).ppt 16

17. 3 GENERATING BUSINESS
The product offering should be tailored to the segment needs
SUSTAINABILITY-NEEDS PROFILE PRODUCT DIFFERENTIATION
National • Environmentally friendly
Pride
Regional
Products
• Healthy – "Good for me"
Independence Work-Life
Balance • Sustainable corporate values
Nutrition
Helping Health conscious
Neighbors • "Green image"
Resource Sport
Family Efficient
• Helps a special cause (Product RED)
Social Culture
Engagement Science &
Protect Research • Promotes fair trade
Ethical Nature
Standards
Education
Human rights Protect
Climate
Development Aid
Source: Roland Berger MACD Workshop v5 (AV).ppt 17

18. 3 GENERATING BUSINESS
Different types of industry focus on different sustainability aspects
Examples for sustainability-segments (Illustrative)
1 SUSTAINABLE
PROCESSES
2 SUSTAINABLE
PRODUCTION
3 SUSTAINABLE
PRODUCT USE AND
RECYCLING
4 SUSTAINABLE
RESOURCE SOLUTIONS
AND SUPPLY CHAIN
5 SUSTAINABLE
PRODUCT INNOVATIONS
6 SUSTAINABLE
VALUE CHAIN
Source: Roland Berger MACD Workshop v5 (AV).ppt 18

19. So what do we do?
Actions to ensure the success of sustainability initiatives
1 LINK YOUR SUSTAINABILITY INITIATIVES TO THE CORPORATE STRATEGY
2 CLEARLY ARTICULATE HOW SUSTAINABILITY HELPS TO MANAGE RISKS
3 DEFINE HOW SUSTAINABILITY REDUCES COSTS
(DIRECT AND INDIRECT)
4 DEVELOP INITIATIVES THAT FURTHER ENHANCE THE BUSINESS
5 CREATE A DIRECT LINK BETWEEN CUSTOMER EXPECTATIONS AND SUSTAINABILITY
Source: Roland Berger MACD Workshop v5 (AV).ppt 19

20. Contact us
Anthonie Versluis
Managing Partner Malaysia
Roland Berger Strategy Consultants Sdn Bhd (949134-W)
Level 39, Menara Standard Chartered
30 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: +603-22038600
Email: anthonie_versluis@my.rolandberger.com
Mobile: +6019-6290073
www.rolandberger.com