Strategic planning involves defining a company's mission, establishing strategic business units (SBUs), and assessing growth opportunities. A company's mission focuses on a limited number of long-term goals, major policies, competitive spheres, and is short and meaningful. SBUs are single or related businesses that can be planned separately, have their own competitors and manager responsible for profits. Strategic planning determines a company's customers, needs, technology, and involves analyzing strengths, weaknesses, opportunities, and threats. Companies form strategic alliances for products, promotions, logistics, and pricing to improve strategic management.

1. Strategic planning

3. Organizational levels of strategic planning
Corporate
SBU
Unit
Functional

4. Dimensions that define a business
Customer groups
Customer needs
Technology

5. Four planning activities
Defining the corporate mission
Establishing strategic business units
Assigning resources to each strategic business unit
Assessing growth opportunities

6. Corporate mission characteristics
They focus on a limited number of goals
They stress the company’s major policies and values
They define the major competitive spheres within which the company
will operate
They take a long-term view
They are as short, memorable, and meaningful as possible

7. Strategic business units

8. SBU Characteristics
It is a single business, or a collection of related businesses, that can be
planned separately from the rest of the company.
It has its own set of competitors.
It has a manager responsible for strategic planning and profit
performance, who controls most of the factors affecting profit.

9. Different SBUs

10. Strategic Planning Gap

14. Planning process

15. SWOT Analysis

17. Porter’s Generic Strategies
Overall cost leadership
Differentiation
Focus

18. Strategic Alliance
Product or services alliances
Promotional alliances
Logistics alliances
Pricing collaborations

19. Strategic Management Framework

21. These slides were created by Sharang Agarwal, IIT Kharagpur as part
of an internship done under the guidance of Prof. Sameer Mathur,
IIM Lucknow (www.IIMInternship.com)
Disclaimer