This document outlines the steps and models to be used in developing a strategic plan. It lists various sources of data for conducting external and internal analysis, including government and industry sources. It then describes the Fred R. David strategic planning model to be followed, which involves developing a vision, mission, values, and analyzing the external and internal environment. It lists various models that can be used within each step, such as PESTEL analysis, Porter's Five Forces, EFAS, and IFAS. The document provides details on how to apply these models to assess opportunities, threats, strengths, and weaknesses. It also outlines steps for formulating strategies using various matching models and selecting a strategy. The plan describes implementing and evaluating strategies using a

1. Strategic Plan

2. Sources of Data
• Cia.gov: Country and Industry Analysis
• Worldbank.org
• Capmas
• Cbe
• GCI: Political and Economic Analysis
• Doing Business: Political and Economic Analysis
• Statista
• Quora
• You.com
• Google trends: Analysis of customers in market and their way of
thinking
• Feedly

3. Strategic Plan Steps & Models
Fred R. David Model
1. Current Vision / Criticism / New Vision
2. Current Mission / Criticism/ New Mission (Check mission Criteria)
3. Core Values (4-6 values, based on Vision/ Industry/ Customer needs/Current
problems)
4. External Environnement Analysis: EFAS & CPM
5. Internal Environment Analysis: IFAS
6. Strategy formulation: Matching phase Models (BCG/IE/
SPACE/TOWS/Grand Strategy Matrix)
7. Strategy Selection: QSPM
8. Long-Term Objectives
9. Strategy Implementation and evaluation: KPI - BSC

4. Strategic models to be used within the plan
(it is not mandatory to use all models)

5. External environment
 PESTEL: Outputs will be submit in Issue priority matrix as
opportunity and threats
 Porter 5 Force Model: Outputs will be submit in Issue priority
matrix as opportunity and threats
 Issue Priority Matrix/ OT analysis: The high opportunity and
threats shall be submit to EFAS
 CPM/ Gap analysis : Model extra to EFAS as it analyze the
competitors
 EFAS is the main output of External Environment

6. PESTEL
Economic
Forces
•GDP / GNP
•Interest Rates
•Money Supply
•Inflation rate
•Unemployment Level
•Wages
•Price control
•Devaluation
•Reevaluation
•Energy costs and
availability
•Disposal income
Technological
Forces
•Government Spending
on R&D
•Industry Spending
on R&D
•Patent protection
•Telecom infrastructure
•Internet availability
•Availability of certain
Technology need to
improve productivity
Political-Legal
Forces
•Anti-trust regulations
•Tax laws
•Attitude toward
foreign companies
•Employment laws
•Stability of government
•Foreign trade laws
•Customs regulations
Socio-Cultural
Forces
•Life Style changes
•Population growth rate
•Age distribution
•Life expectancies
•Birth rate
•Mortality rate
•Religious orientation

7. Issue Priority Matrix

9. Competitive Profile Matrix (CPM)

10. 10
External Factor Analysis Summary (EFAS)
External Factors Weight Rating
Weighted
Score Comments
1.00
Opportunities
• Economic integration of
European Community
• Demographics favor quality
appliances
• Economic development of Asia
• Opening of Eastern Europe
• Trend to “Super Stores”
Threats
• Increasing government regulations
• Strong U.S. competition
• Whirlpool and Electrolux strong
globally
• New product advances
• Japanese appliance companies
Total Scores
.20
.10
.05
.05
.10
.10
.10
.15
.05
.10
4
4
1
2
2
4
4
3
1
2
.80
.40
.05
.10
.20
.40
.40
.45
.05
.20
Acquisition of
Hoover
Maytag quality
Low Maytag presence
Will take time
Maytag weak in this
channel
Well positioned
Well positioned
Hoover weak globally
Questionable
Only Asian presence is
Australia
3.05
1 2 3 4 5

11. Internal Environment
 Financial Analysis (Statements / Ratios)
 Porter Value Chain Model
 McKinsey 7S Model
 VRIO Model
 IFAS – Main Output of Internal Environment

12. Financial analysis (Statements / ratios)
Statements
• Income Statements (P&L)
• Balance Sheet: (Financial Position)
• Cash Flow Statement
Ratios
• Liquidity
• Activity
• Profitability
• Leverage
Financial Analysis is based on
• Time Series: Same Company within 3 to 5 years
• Cross-Sectional : Analysis with competitors

13. Mackinsey 7S model

14. Firm Infrastructure
(general management, accounting, finance, strategic planning)
Human Resource Management
(recruiting, training, development)
Technology Development
(R&D, product and process improvement)
Procurement
(purchasing of raw material, machines and supplies)
Inbound
Logistics
(raw material
Handling and
Warehousing)
Operations
(machining,
Assembling,
Testing)
Outbound
Logistics
(warehousing,
distribution
Of finished
goods)
Marketing
And Sales
(Ads,
promotion
Pricing,
Channel )
Services
(insulation,
Repair,
Parts)
Value Chain Analysis
Profit
Margin
Support
Activities
Primary Activities

15. VRIO model

16. Internal Factor Analysis Summary (IFAS)
Internal Factors
Weight Rating
Weighted
Score Comments
1 2 3 4 5
1.00
Strengths
• Quality Maytag culture
• Experienced top management
• Vertical integration
• Employee relations
• Hoover’s international orientation
Weaknesses
• Process-oriented R&D
• Distribution channels
• Financial position
• Global positioning
• Manufacturing facilities
Total Weighted Score
Quality key to success
Know appliances
Dedicated factories
Good, but deteriorating
Hoover name in cleaners
Slow on new products
Superstores replacing
small dealers
High debt load
Hoover weak outside the
United Kingdom and
Australia
Investing now
3.05
.15
.05
.10
.05
.15
.05
.05
.15
.20
.05
4
4
4
3
3
2
2
2
2
4
.6
.20
.40
.15
.45
.10
.10
.30
.40
.20

17. Strategy Formulation
 SPACE
 Grand strategy matrix
 TOWS
 BCG
 IE

18. Grand Strategy Matrix

22. Ch 6 -22

23. SAFAS

24. Quantitative Strategic
Planning Matrix
Key Factors
Weight
Strategy 1 Strategy 2
AS TAS AS TAS
Brand equity (S) 0.07 4 0.28 3 0.21
ROI (S) 0.11 4 0.44 4 0.44
Design (S) 0.05 4 0.2 3 0.15
Distribution (W) 0.065 3 0.195 3 0.195
Liquidity (O) 0.17 3 0.51 3 0.51
Technology (T) 0.12 4 0.48 3 0.36
Interest rate (O) 0.19 4 0.76 2 0.38
Market growth (O) 0.14 3 0.42 3 0.42
Substitutes (T) 0.085 3 0.255 3 0.255
Total 1 3.54 2.92
QSPM (Quantitative Strategic Planning Matrix)
Strategy Selection

25. Strategy Implementation and Evaluation
• Technique designed to determine the relative attractiveness of feasible
alternative actions
• Balanced Scorecard
• KPI’s

26. Business Plan

27. The Business Plan
1. Executive Summary
2. Company Description
3. Market Analysis
4. Organization and Management
5. Service or Product Line
6. Marketing and Sales
7. Financial Projections
8. Appendix
Company Description
Marketing Plan
Financial Plan

28. 1-Executive Summary
• Briefly tell your reader what your company is and why it will be successful.
Include your mission statement, your product or service, and basic information
about your company’s leadership team, employees, and location.
• You should also include financial information and high-level growth plans if you
plan to ask for financing.

29. 2-Company Description
• Use your company description to provide detailed information about
your company. Go into detail about the problems your business
solves.
• Be specific, and list out the consumers, organization, or businesses
your company plans to serve.
• Explain the competitive advantages that will make your business a
success. Are there experts on your team? Have you found the perfect
location for your store? Your company description is the place to boast
about your strengths.

30. 3-Market Analysis
• You'll need a good understanding of your industry outlook and target market.
Competitive research will show you what other businesses are doing and what
their strengths are.
• In your market research, look for trends and themes. What do successful
competitors do? Why does it work? Can you do it better?
• Marketing segmentation

31. 4-Organization And Management
• Tell your reader how your company will be structured and who will run it.
• Describe the legal status of your business
• Use an organizational chart to lay out who's in charge of what in your company.
Show how each person's unique experience will contribute to the success of
your venture.

32. 5-Service or Product Line
• Describe what is your product or what service you offer.
• Explain how it benefits your customers and what the product lifecycle looks like.
• You may include product portfolio (IE/BCG)

33. 6-Marketing And Sales
• There's no single way to approach a marketing strategy. Your strategy
should evolve and change to fit your unique needs.
• Your goal in this section is to describe how you'll attract and retain
customers. You'll also describe how a sale will actually happen.
• You'll refer to this section later when you make financial projections,
so make sure to thoroughly describe your complete marketing and
sales strategies.
• Marketing strategy
• Marketing tactics/ promotion
• STP
• Marketing Mix
• Marketing Budget - Sales Forecasting
• Control

34. 7-Financial Projections
• Supplement your funding request with financial
projections. Your goal is to convince the reader
that your business is stable and will be a financial
success.
• If your business is already established, include
income statements, balance sheets, and cash
flow statements for the last three to five years. If
you have other collateral you could put against a
loan, make sure to list it now.
• Provide a prospective financial outlook for the
next five years. Include forecasted income
statements, balance sheets, cash flow
statements, and capital expenditure budgets.
• For the first year, be even more specific and
use quarterly — or even monthly — projections.
Make sure to clearly explain your projections, and
match them to your funding requests.
• This is a great place to use graphs and charts to
tell the financial story of your business.
• Financial Ratio analysis (3 to 5 years)
• Financial forecasting
• Financial Comment

35. 8-Appendix
• Use your appendix to provide supporting documents or other materials were
specially requested.
• Common items to include are credit histories, resumes, product pictures, letters
of reference, licenses, permits, patents, legal documents, and other contracts.