Here are the key steps I would recommend for your strategic planning process: 1. Form a strategic planning committee with representatives from across departments to gather diverse perspectives. 2. Conduct an environmental scan to analyze opportunities/threats in the industry and assess the company's strengths/weaknesses. 3. Hold brainstorming sessions to generate ideas for the vision, mission, values and strategic goals. Survey all employees to get input. 4. Have the committee synthesize feedback to draft the strategic plan documents for board review. 5. Cascade the strategic objectives throughout the organization so everyone understands their role in achieving the goals. 6. Implement action plans with accountability, timeline and performance metrics assigned.

1. Strategic Management
Chapter # 1

2. Learning Objectives
LO1. Competitive Advantages
LO2. Strategic role of Managers at different level
within the organization
LO3. Primary steps in Strategic planning process
LO4. Common pitfalls of planning and who it can be
avoided
LO5. Cognitive biases lead to poor strategic decision
LO6. Role strategy leaders play in the strategy
process

3. Opening Case (WAL-MART)
- Superior profitability reflects competitive
advantage based on number of Strategies
- Target and K-mart focus on urban and suburban
locations, Wal-Mart concentration on small
southern towns.
- Wal-Mart managed to offer prices lower than
competitors because of Information systems,
logistics and HR practices.
- Competitors realized later about this strategy
and enough potential to be a profit base for
Wal-Mart.
- Wal-Mart introduced sophisticated product
tracking systems using barcodes technology and
scanners.

4. Opening Case (WAL-MART)
• These systems helped to track the sales and adjust the inventory by matching the
products with local demand.
• Wal-Mart linked the IS to nationwide network of distributors.
• Inventory was stored and shipped to stores within a 400 miles radius on daily basis.
• In HR, respect and rewarded for all the employees contributed towards the
organizational goals.
• In 1970, profit-sharing scheme was introduced, employees to purchase Wal-Mart stock
at discounted price to its market value.
• Higher the Employee Productivity >> Lower the operational cost.
• Market Share increased >> Higher the purchasing power of the company
Maintained the low prices
• Wal-Mart shared the sales information with suppliers to configure their own production
• In 1990, largest seller of general merchandise in US; 1991 went globally and started from
Mexico.

5. Vision and Mission
Amazon
Vision
“to be earth's most customer centric company; to build a place where people can come to find and
discover anything they might want to buy online.”
Mission
“We strive to offer our customers the lowest possible prices, the best available selection, and the
utmost convenience.”
Intel
Vision
“If it is smart and connected, it is best with Intel”
Mission
“Delight our customers, employees, and shareholders by relentlessly delivering the platform and
technology advancements that become essential to the way we work and live.”

6. Vision and Mission
Emirates
Vision
“to deliver the world's best in flight experience”
Mission
“Commit to safeguarding all customers, staff and assets against acts of unlawful interference through continuous
reviews, training and education”
PIA
Vision
“to be a world class profitable airline meeting customer expectation through excellent services, on-time performance,
innovative products and absolute safety”
Mission
“Employee teams will contribute towards making PIA a global airline of choice through:
• Offering quality customer services and innovative products
• Using state-of-the-art technologies
• Ensuring cost-effective measures in procurement and operation
• Developing Safety Culture”

7. Vision and Mission
Google
Vision
“to provide access to the world's information in one click”
Mission
“to organize the world's information and make it universally accessible and useful”
P&G
Vision
“BE & BE recognized as the Best Consumer Products and service company in the world”
Mission
“To provide branded products and services of superior quality and value that improve the lives of the
world's consumers:

8. Strategic Leadership
Strategy
a set of related actions that managers take to
increase their company’s performance
Strategic Leadership
Creating competitive advantage through effective
management of the strategy-making process
Strategy Formulation
Selecting strategies based on analysis of an
organization’s external and internal environment
Strategy Implementation
Putting Strategies into action

9. Strategic Leadership
“Leadership is an influence of Personal Power that creates
Progressively Advancing community towards common purpose”
• Leadership is Personal Power not Positional Power
• Influence other towards the attainment of common goals
• Progressively Advancing
- Not Activity Process >> variation >> Standardization
- Ever Increasing; Growing; Expanding and Improving
- Improve the Quality (both Input and Output)

10. Strategic Leadership
• Community (Not Department, Organization , Division but Community)
• Common purpose
- Personal Goals Vs Common Goals
- Group of people come with Vs Group of people come with head
their hands & legs and heart
• For Example: Political Parties, Religious Organizations, Spiritual
Organizations, Corporate Organizations  Common Purpose
• Team work for Dreams not Salaries
• PREPARE COMMOM ORGATIONAL BELIEFS

11. Strategic Leadership
1. Family comes 2nd Business Comes 1st
2. Common Compelling Exciting Story
3. Organizational Beliefs
4. Identify Common Purpose
5. Prepare your Team

12. Competitive Advantage and a
Company’s Business Model
Competitive advantage
The achieved advantage over rivals when a company’s profitability is greater than
the average profitability of firms in its industry
Sustained Competitive Advantage
A company’s strategies enable it to maintain above-average profitability for a
number of years
Business Model
The conception of how strategies should work together as a whole to enable the
company to achieve competitive advantage

13. Company’s Business Model
A business model encompasses the totality of how a
company will:
• Select its customers.
• Define and differentiate its product offerings.
• Create value for its customers.
• Acquire and keep customers.
• Produce goods or services.
• Lower costs.
• Deliver goods and services to the market.
• Organize activities within the company
• Configure its resources.
• Achieve and sustain a high level of profitability.
• Grow the business over time

14. Strategic Managers
General Managers
Managers who bear responsibility for the overall performance of the company
Functional Managers
Managers responsible for supervising a particular function, that is, a task, activity, or
operation, such as accounting, marketing, research and development (R&D),
information technology, or logistics.
Line Managers / Supervisors / Shift In charge

15. Strategy-Making Process
Model of the Strategic Planning Process have five (5) steps;
1. Select the corporate mission and major corporate goals.
2. Analyze the organization’s external competitive environment to identify
opportunities and threats.
3. Analyze the organization’s internal operating environment to identify the
organization’s strengths and weaknesses.
4. Select strategies that build on the organization’s strengths and correct its
weaknesses in order to take advantage of external opportunities and counter
external threats. These strategies should be consistent with the mission and
major goals of the organization.
5. Implement the strategies

16. Strategy-Making Process
Mission
The purpose of the company, or a statement of what
the company strives to do
Vision
The articulation of a company’s desired achievements
or future state
Values
A statement of how employees should conduct
themselves and their business to help achieve the
company mission
Distinctive competence refers to a superior
characteristic, strength, or quality that distinguishes a
company from its competitors

17. Strategy-Making Process
Goal is a precise and measurable future state that a company attempts to
realize.
• What must be done if the company is to attain its Mission and Vision
• For the attainment of High Profitability and Sustainable Profit Growth
• Mistake of overemphasizing current profitability to maximize short term
return on invested capital. It kills innovation, R&D, underinvestment, reduce
marketing budgets can jeopardize long term profitability.
• Managers or Decision Makers adopt goals for the attainment of long run
performance.
• Like Product development, Customer Loyalty, Sustainability, Product
Quality, Innovation, Customer Retention and Customer Service.

18. Strategy-Making Process
Major Goals
• They are precise and measurable
• They address crucial issues
• They are challenging but realistic
• They specify a time period in which the goals should be achieved, when that
is appropriate
External Analysis
Internal Analysis
SWOT Analysis
The comparison of strengths, weaknesses, opportunities, and threats

19. 2nd Component of the Strategic Management Process is an analysis of
Organizational External operating Environment.
• Three interrelated environments should be examined
1. the industry environment in which the company operates (major
rivals, history of industry leads to asses the impact of globalization)
2. The country or National Environment (Production facilities, Laws &
Regulations, Situations, Ease of doing business, Labor)
3. the wider socioeconomic like (income, education, employment,
community safety, and social supports)
Strategy-Making Process

20. 3rd Component of the Strategic Management Process is an analysis of
Internal Analysis.
• Focuses on reviewing the resources, capabilities and competitiveness.
• To identify Strengths and Weaknesses
SWOT Analysis and the Business Model
Strategy-Making Process

21. You are a group of senior managers working for a fast-growing computer software
company. Your product allows users to play interactive role-playing games over the
Internet. In the past 3 years, your company has gone from being a start-up enterprise
with 10 employees and no revenues to a company with 250 employees and revenues of
$60 million. It has been growing so rapidly that you have not had time to create a
strategic plan, but now members of the board of directors are telling you that they want
to see a plan, and they want the plan to drive decision making and resource allocation at
the company. They want you to design a planning process that will have the following
attributes:
1. It will be democratic, involving as many key employees as possible in the process.
2. It will help to build a sense of shared vision within the company about how to continue
to grow rapidly.
3. It will lead to the generation of three to five key strategies for the company.
4. It will drive the formulation of detailed action plans, and these plans will be
subsequently linked to the company’s annual operating budget.
Design a planning process to present to your board of directors. Think carefully about
who should be included in this process. Be sure to outline the strengths and weaknesses
of the approach you choose, and be prepared to justify why your approach might be
superior to alternative approaches.
Activity

22. The Theory of Decision Making
Edwards, W. (1954). The theory of decision making. Psychological
bulletin, 51(4), 380.
The Effective Decision
by Peter F. Drucker
(Harvard Business Review)
https://hbr.org/1967/01/the-effective-decision

23. Research Article
Determinants of a Firm’s Sustainable Competitive Advantages: Focused on
Korean Small Enterprises
Lee, S., & Yoo, J. (2021). Determinants of a firm’s sustainable competitive advantages:
Focused on Korean small enterprises. Sustainability, 13(1), 346.
file:///C:/Users/Acer/Downloads/sustainability-13-00346-v2.pdf
Indigenous Case 1
ENGRO CHEMICALS PAKISTAN LIMITED – BUSINESS DISASTER OVERCOME
Richard Ivey School Of Business
The University Of Western Ontario