This document outlines the key concepts of strategic planning including: 1. It defines strategic planning as large-scale, future-oriented plans to achieve organizational objectives and compete in markets. 2. Strategic plans are long-term in nature, formulated by top management, and guide resource allocation to move the organization towards its objectives. 3. The strategic planning process involves objective formulation, environmental analysis, strategy development, evaluation, implementation, and evaluation.

1. Competitive Strategy

2. 3 Dimensions of Planning
1. Strategic – To achieve overall organizational
goals by effective allocation of resources over
different functional areas
2. Tactical – To support and implement strategic
plans. Related to departmental goals
3. Operational – Related to short term (less
than one year) achievement of objectives

3. Strategy
• A course of action that defines and achieves
organization’s objectives and implements its
missions
• Large scale future oriented plans for competing in
designated products and markets to achieve
organization’s objectives
• Creates a unified direction for the organization in
terms of its many objectives, and it guides the
deployment of the resources used to move the
organization towards those objectives

4. Features of Strategy
• Long run in nature
• Effectiveness can not be known in near future
• Specific
• Single use plan
• Formulated by top level management
• Coordinates an organization’s internal & external
environment
• Allocates resources
• Gives the firm a competitive adge
• Pervasive

5. Styles of Making Strategy
• Entrepreneurial mode
– Applies to risk taking organizations
– Top level executives frame strategies based on their experience &
judgment
– Growth oriented
– Based on estimates of future
• Adaptive mode
– Defensive in nature
– Adaptive to the changes in environment
• Planning mode
– Forecasts changes in environment & prepares organization to face
these changes
– Estimates of future based on structured, systematic and rational
analysis of environmental threats & opportunities

6. Importance of Strategic Planning
• Financial benefits
• Acts as a guide
• Competitive advantage
• Minimizes risk
• Optimum utilization of resources
• Motivates

7. Limitations of Strategic Planning
• Lack of knowledge
• Interdependence of units
• Managerial perception
• High costs

8. Process of Strategic Planning
• Objective formulation
• Identify current objectives and strategies
• Analyze available information
• Analyze the impact of environment
• Analyze resource position of the firm
• Establish alternative strategies
• Evaluate alternative strategies
• Choice of a strategy
• Implementation of strategy
• Measurement and control of strategy

9. Levels of Strategy
• Corporate level strategy – for corporate as a
whole
• Business level strategy – for single line of
business
• Functional level strategy – made for functional
areas

10. Implementation of Strategy
• Communication of strategies
• Communication of planning premises
• Reflection of overall objectives
• Review
• Develop contingency strategies
• Development of organization structure
• Need to spread the importance of strategies
• Climate

11. Evaluation of Strategy
• Consistency (with the environment)
• Company Profile (SWOT Analysis)
• Risk (within acceptable limits)
• Time (should be made for balanced time
periods)
• Feasibility