This document provides an overview of corporate strategic planning, including: - The key attributes of corporate strategic planning such as transparency and incorporating both short and long-term perspectives. - The strategic planning process, including strategy analysis, decisions, and actions. It also discusses the importance of stakeholder management. - Internal and external factors that influence strategic planning, such as leadership, customer tastes, competition, and material costs. - An example of Nissan's strategic turnaround led by Carlos Ghosn, focusing on asset, capital, and management restructuring. - The importance of a hierarchy of strategic goals including an organization's vision, mission, and objectives.

1. Chapter One
Corporate Strategic Planning(CSP)
Creating Competitive Advantages

2. After studying this chapter, you should have
a good understanding of:
• the definition of CSP and its four key attributes
• the CSP process and its three interrelated and
principal activities(slides18)
• why stakeholder management is so critical in the
strategic planning process and how “symbiosis” can be
achieved among an organization’s stakeholders
• the key environmental forces that are creating more
unpredictable change and requiring greater
empowerment throughout the organization
• how an awareness of a hierarchy of strategic
goals(Vision ,Mission & Objectives) can help an
organization to achieve coherence in its strategic
direction[e.g., PRASAC microfinance (slides19-28)
Learning
Objectives

3. Strategic Planning ProcessStrategic Planning Process
© Prentice Hall, 2002 8-8-33
Strategy analysisStrategy analysis
 The firm must engage in CSP that clearly definesdefines objectives andand assesses both theboth the
internal and external situation tointernal and external situation to formulate strategy,strategy, implement the strategy,the strategy,
evaluate the progress, and make adjustments as necessary to stay on trackthe progress, and make adjustments as necessary to stay on track.
DecisionsDecisions ActionsActions

4.  Directs the corporate strategic goals (VMO):
 Strategic allocationStrategic allocation (Stated goals_V & Real goals _ M : see into Slide # 20 to28)::
Factors effecting national competitivenessFactors effecting national competitiveness (see into footnoted)) ::
 Factor conditions(L&I)Factor conditions(L&I):: LabourLabour ((LL))__Education:
Skill levels_Specific knowledge and skills created within a
country that led to nation’s competitive advantage AndAnd
PhysicalPhysical InfrastructureInfrastructure((II)): Transportation systems(by air,
land &boats?) ,Telecoms systems (IT systems..) , Banking system
{e.g., interest rates _ Loan & deposit % in Cambodia} and Energy system
network and policy/policy/regulationsregulations (importance for eco-development).
 Demand conditions _Demand conditions _ Strong, trend-setting local market helps
local firms anticipate global trends.(How firms view a market power?)
 Strategic objectives(G&S)Strategic objectives(G&S) : E.g., Cam-tourism sector in the
Global objective(G) _ contribute to the sustainable developing tourism
industry in order to contribute to countrywide economic growth and poverty
alleviation & the Specific objective(S) _increase the supply of trained
personnel for the hospitality and tourism industry as a key means of
strengthening the human resource capacity and competitiveness of the sector
in Cambodia.)..
Key Attributes of CSPExhibit 1.1
TRANSPARENCY-4

5.  Involves the inclusion of multiple stakeholders in
decision makingdecision making _ Stakeholders: ownersowners(Common stock ),
customers, suppliers, employeesemployees, creditors and society at largesociety at large...).
E.g., Differentiation of Security (B or SB or S):
 Bonds_ A long-term debt instrument with a final maturity generally being 10
years or more.
or StocksStocks : Preferred stock(Preferred stock()_)_A type of stock that promises a
(usually) fixed dividendfixed dividend, but at the discretion of the board of directors
& Common stock(& Common stock())_Securities that represent the ultimate ownership
(and risk) position in a corporation.).).(slide#6-10)
 Stakeholder managementStakeholder management is so critical in the strategic
planning process and how “symbiosis” can be achieved
among an organization’s stakeholders(CEOCEO).
Key Attributes of CSPExhibit 1.1
TRANSPARENCY-5

6.  CSP needs to incorporate both short-short-
term and long-term perspectivesterm and long-term perspectives ((SWOT))
:: ManagersManagers must focus on thethe short-termshort-term andand efficiencyefficiency ; at
other times the emphasis is on the long termthe long term andand expandingexpanding a
firm’s product -market scope(Industrywide) in order to
anticipate opportunities in competitive environment _ LeadersLeaders
focus on long-term and effectivenesslong-term and effectiveness }. So, the both
are vital to organizational success!
 e.g., CamGSM Co.,Ltd (Cellcard)
(Fig.1.2)
Exhibit 1.1
TRANSPARENCY-11
Key Attributes of CSP (cont.)

7. SS
OO
WW
TT
Aggressive Strategy (S-O)Aggressive Strategy (S-O)
-Capital ($421M,2009)& No competitor
leader telecom (Renowned for its
innovation, value and service)
-3G 2011 & internet fast
-Network with government
-Technical corporate with Huawei
- Corporate with Samsung, Huawei
Turnaround Strategy (W-O)Turnaround Strategy (W-O)
 Quick access in Cambodia market 1997
(Luxembourg 61.5% & RG_ 38.5%):
-People(Implement proposed OS &Strengthen
internal training capacity)
- Policies & Procedures(Standards to be developed
on proper utilization of IT infrastructure)
-Service Management & Support( service
level monitoring capacity to be developed)
-Change Management(Staff to be prepared & to
be provided the skills they need to make the transition
from the old to the new)
- Company infrastructure & technology
Defensive Strategy (S-T)Defensive Strategy (S-T)
- New international competitor(7-Co.)
-Tariff & Capital & Technology
- Satisfy to Customers as: 1 Quality 1 Service
1 Value
- Build good relationship both internally and
externally
-Wholly owner
-
Retrenchment Strategy (W-Retrenchment Strategy (W-
T)T)
-Prepare Subsidiary Plan Cellcard
Finance Plc
- Company Structure and technology
- Human Resource (Motivate staff)
- Financial
-Innovation
Figure1.2. SWOT: CamGSM Co.,Ltd

8. • Internal factors: Organizational leader as key forcekey force in
determining organizational successsuccess oror failurefailure::
Leadership _ the process of influencing an organized
group(ability to integrate and coordinate) toward
accomplishing its business strategic Goals (achieve a
sustainable competitive advantage).
 Nissan’s leader_ Carlos Ghosn (Asset, Capital&
Management restructuring)
Key Attributes of CSP (cont.): Internal &External
Environment.

9. Nissan’s leader_ Carlos GhosnNissan’s leader_ Carlos GhosnI. Asset restructuring: involves the sale of unproductive
assets {e.g., Carlos Ghosn has cut thousands of Nissan
jobs, shut down the first of five domestic plants, and
auctioned off prized assets such as Nissan's aerospace
unit(not necessarily about outspending rivals on R&D)}or
acquisitions that strengthen the core business (The multiple
technologies and hire a team of brilliant scientists or coordination of diverse production
skills : firm to create superior value for its customers ; firm to create superior profits for
itself and be difficult for competitors to imitate.).(see into footnote)
II. Capital restructuring: change in debt-equity mix
through integrating vertically &sharing costs among
business units . (e.g. Corporate parenting support strategic
planning & provide capital addition to Bus _ Means to
achieving merger, joint venture & alliances….) Dr. PHEA V.,2016

10. Nissan’s leader_ Carlos Ghosn (cont.)
So,the capital restructuring result by Nissan's leader : cut
cost to Nissan debt from 13B to 10B and raise stock price
38%,2000 for the six months ended in September and expects
record profits of $2.3 billion for fiscal 2001; and 2006
Renault & Nissan alliance _ collective market capitalization
from 20.4B to 84.9B).
III. Management restructuring: changes in composition of
top management team(strategiesstrategies), organizational structurestructure,
and change the working procedureprocedure (tasks , duties andtasks , duties and
responsibilitiesresponsibilities) relationships in purpose of effective
coordination among all the groups in the organization .
While a company may be able to hire a team of brilliant scientists in a
particular technology & involved in bringing a product to market .
Dr.PHEA Vanna,2016

11. • External factors: changes in external factors
 Shifts in customer tastes or Consumer’s preferences (e.g.
China’s products, 2015-2020:qualitative changes): Social-cultural
segments affect customer needs and the size of potential markets.
 International competition ( Pressure toPressure to Q with lowerQ with lower costscosts
(Technological factors_TF) & pressure for local adaptation (National
and cultural differences drive firms to adapt products to local preferences ) :
e.g. TF can lower barriers to entry, reduce minimum efficient
production levels(Esc),&influence outsourcing decisions (value
chain) _Competitive pressures drive firms toward increased efficiency).
 Price erosion (fluctuation)_Eco. seg-ts affect the purchasing
power of potential customers and the firm's cost of capital.
 Rising material costs(e.g., oil shortages,..)_P&G seg-ts
 External conditions determinedetermine contextscontexts in which organizational
leaders create (opportunities) or lose (threats)create (opportunities) or lose (threats) organizational value.value.
Dr.PHEA Vanna,2016 Strategy analysis(Ch.1-3)

12. CHAPTER 1
McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
STRATEGIC MANAGEMENT Gregory G. Dess and G. T. Lumpkin
Corporate Goal Hierarchy : Vision, Mission and
Objectives ( e.g. PRASAC MFI)
 The company's business vision , generally consisting of the
following three components:
o Core values are central to the firm(are viewed as an asset).The
following are a few examples of values that some firms has chosen to
be in their core: excellent customer service; pioneering technology
;creativity ;integrity and social responsibility.
o Core purpose is the reason that the firm exists (is simply an
expression of what already attained.)
o and forward-looking Visionary goals are the lofty (далёкий)
objectives that the firm's management decides to pursue and will
pursue to fulfill its mission and may require a decade or more to
achieve[only a 50% chance of realizing the vision, but the firm must
believe that it can do so(the firm's strategic allocation resources
(globalization; technology and intellectual capital _ see in to slide#29)
and capabilities to the competitive environment)].

13. Case: PRASAC MFI
PRASAC Development Background
 1995: EU Fund rural Project in 6 Provinces
 2002: PRASAC Credit Association (PCA)
 2004: PRASAC Microfinance Institution
 2009: Modernized system to Oracle Flexcube
Universal Banking(pioneering technology)
 2010: Deposit License from NBC
 2012: ATM Launching in 30 Locations

14. Strategic Goal
Goal hierarchy ( VMO )
PRASAC VisioVisionary Goals will pursue to improve the living
standards of the rural people to contribute the sustainable
economic development by being a financially viable microfinance
institution.(These visionary goals are longer term and more
challenging than strategic or tactical goals.)
Chapter1.Dr. Phea Vanna 2014

15. Goal hierarchy ( Prasac MFI Ltd )
The business Mission (Core P&V)The business Mission (Core P&V) __ provide
sustainable access to financial services for rural
communities & micro-enterprises.
• Core purpose is the reason that firm exists or result in
to specific of a statement that focuses on a product or
service: Prasak focuses on a products & services
(slide#23) and basis of competition (more than 170
branch offices and lower interest rate (22%)in Cambodia )
• Communicates to stakeholders(% Shareholding: BIO_
22.25%, DCG_ 22.25%, FMO_ 22.25%, LOLC_22.25%,
and Integrity PSCo _11%): $379 mln,2013
• Creativity Value-focused (Loan_$5000 to $50,000)
Dr. Phea Vanna 2015

16. PRASAC MFI: Core purpose
Products and Services
1.Credit Product 6.Unfixed Deposit Account 11.ATM Service
2.Saving Account 7.Term Deposit Account
12. Mobile Top
Up
3.Foreign Exchange 8.Bill Payment Service 13.MME
4.Payroll Service 9.Domestic Transfer Service
5. Bank Confirmation 10.Retirement Account

17. Core Values: Creativity

18. Core Values _ excellent customer service

19. Core Values : social responsibility

20. The Business objectives are to carry out activities of
microfinance by providing financial services to rural households
and SM Enterprises, such as:
1.Credit services in the form of group and individual loans
2.Savings and money transfer services
3.To raise funds or borrow money in such manner as the company
shall think fit and to secure the repayment of any money borrowed,
raised or owed(payable) to creditors
4.Do all such other things as incidental advantage (побочная выгода) or which the
Company may think fit and conducive to the attainment of the above objectives.
The objectives shall be achieved by strict adherence (supporter
from ) of high professional and moral standards, transparency, and
good governance.
Dr. Phea Vanna 2012
Goal hierarchy ( Prasac MFI Ltd )