Strategic planning template hk
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This strategic planning template outlines the key components of a strategic plan for a company. It includes sections for the company's mission statement, strategic objectives, macroenvironment analysis using PESTEL and Porter's Five Forces frameworks, and an internal analysis of the company's value chain. The internal analysis section provides spaces to identify the company's strengths, weaknesses, opportunities, and threats within each part of its value chain, including supply chain management, marketing, operations, technology, human resources, leadership, financial health, and reputation. The template thus provides a comprehensive guide for a company to define its strategy by assessing the external environment and internal capabilities.
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1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
1
CHAPTER
2
THE EXTERNAL ENVIRONMENT:
OPPORTUNITIES, THREATS, INDUSTRY COMPETITION
AND COMPETITOR ANALYSIS
Opening remarks
Company’s strategic actions are affected by
External environment
Internal environment
External environment is the source of:
Opportunities
Threats
The need for monitoring and analyzing external environment
The pace of change
Complexity
Uncertainty
2
The general, industry and competitor
analysis
3
General environment – broader society dimensions ( 7 dimensions)
Demographic, economic, political/legal, sociocultural, technological, physical and global
Out of firm’s control so must monitor and gather information
Industry environment – factors in competitive environment
Threat of new entrants, power of suppliers, power of buyers, threat of product substitutes, intensity of rivalry among competitors
Firm must assess industry’s opportunities for profit potential
Competitor analysis or competitive intelligence – the way firm’s can gather and analyze information on the industry competitors
Identifying their actions, responses and intentions
These three analyses influence and are influenced by the firm’s vision, mission and strategic actions
The general, industry and competitor environments
4
Three External Environments include:
General
Industry
Competitor
Segments of the general environment
5
DEMOGRAPHIC
Population size
Geographic distribution
ECONOMIC
Nature and direction of the economy in which a firm competes or may compete
SOCIO-CULTURAL
Refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes
Age structure
Ethnic mix
Income distribution
POLITICAL/LEGAL
PHYSICAL
TECHNOLOGICAL
GLOBAL
Arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding the interactions among nations as well as between firms and various local governmental agencies
Concerned with a society's attitudes and cultural values
Includes the institutions and activities involved with creating new knowledge and translating that knowledge into new products, processes, and materials
Includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets
External environmental analysis
6
The objective of this analysis is identification of
Opportunities and
Threats
Opportunity – a condition in the external environment that helps a company achieve strategic competitiveness, if exploited
Threat – a condition in the external environment that may diminish company’s efforts towards achieving strategic competitiveness
The four-step process includes
Scanning
Monitoring
Forecasting
Assessing
1. Scanning
Studying all the segments of the general environment
Early signals of changes an ...
. Introduction to Corporate Strategy(CS))
The term strategy is derived from the Greek word “Strategos” means a plan or process or a set of decision rules or an arrangement to create a common thread.
It is the path or the way to achieve the goals of the organization or corporate.
It helps the manager proactively to direct or run the organization in a volatile environment.
It consists of WH questions.
Mintzberg has defined the strategy which consists of “5Ps” such as: plan, pattern, position, ploy and perspective.
A Plan “how to achieve the target”.
A Pattern “to take consistent actions over time”.
A Position “to be achieved by offering goods and services in particular market”.
A Ploy “how to beat the competitors by using tactics and tricks with proper allocation and utilization of resources”.
A Perspective “it is the vision of the organization what it want to be”.
Strategy is concerned with to achieve the broad goals of the organization.
It establishes unique value proposition compared to its competitors.
It provides tailored value to its customers.
It clearly identifies and clarifies what not to do.
It empowers the organization to move towards its vision.
It creates environmental scanning to gain competitive advantage.
External environment is the environment outside of the organization which influences the business. It can broadly be categorised into two parts: Micro Environment & Macro Environment.
Micro Environment studies the small area of business or immediate periphery of the organization. It directly influence and regulate the business.
E.g.: customers, suppliers, creditors, vendors, competitors and local community.
Macro Environment: It studies overall business activity in a broad manner. It influences business on the basis of “PEST”: Political, Economic, Socio-cultural and Technology.
Internal Environment is a component of the business environment, which is composed of various elements present inside the organization that can affect and be affected by the decision of the organization and its activities.
The internal environment of the organization consists of employees, management, owner, shareholders, investors and all other resources.
Factors influencing external environment are: value system, vision, structure, culture, human resource, physical resource, technical-know-how etc.
Strategic Advantage Profile (SAP) is a summary statement which provides an overview of the advantages and disadvantages in key areas which affect future operations of the organization.
It is the systematic evaluation of strategic advantage which is significant for the business and its environment.
It involves analysis of internal strength and weakness along with opportunities and threats by focusing on complete study of functional areas like: marketing, production, finance, accounting, personnel, R&D.
INTRODUCTION TO CORPORATE STRATEGY
The term strategy is derived from the Greek word “Strategos” means a plan or process or a set of decision rules or an arrangement to create a common thread.
It is the path or the way to achieve the goals of the organization or corporate.
It helps the manager proactively to direct or run the organization in a volatile environment.
It consists of WH questions.
Mintzberg has defined the strategy which consists of “5Ps” such as: plan, pattern, position, ploy and perspective.
A Plan “how to achieve the target”.
A Pattern “to take consistent actions over time”.
A Position “to be achieved by offering goods and services in particular market”.
A Ploy “how to beat the competitors by using tactics and tricks with proper allocation and utilization of resources”.
A Perspective “it is the vision of the organization what it want to be”.
Characteristics:
Strategy is concerned with to achieve the broad goals of the organization.
It establishes unique value proposition compared to its competitors.
It provides tailored value to its customers.
It clearly identifies and clarifies what not to do.
It empowers the organization to move towards its vision.
It creates environmental scanning to gain competitive advantage.
External environment is the environment outside of the organization which influences the business. It can broadly be categorised into two parts: Micro Environment & Macro Environment.
Micro Environment studies the small area of business or immediate periphery of the organization. It directly influence and regulate the business.
E.g.: customers, suppliers, creditors, vendors, competitors and local community.
Macro Environment: It studies overall business activity in a broad manner. It influences business on the basis of “PEST”: Political, Economic, Socio-cultural and Technology.
Political Factors consists of employment laws, tax policy, policies regarding trade & tariffs, environmental regulation and political stability.
Economic Factors consists of economic growth, interest rate, exchange rate and inflation rate.
Socio-Cultural Factors consists of health consciousness, population growth rate, age, career attitude, emphasis on safety etc.
Technological Factor consists of R & D activity, automation, technology incentives and change in technology.
Internal Environment is a component of the business environment, which is composed of various elements present inside the organization that can affect and be affected by the decision of the organization and its activities.
The internal environment of the organization consists of employees, management, owner, shareholders, investors and all other resources.
Factors influencing external environment are: value system, vision, structure, culture, human resource, physical resource, technical-know-how etc.
The internal environment environmental analysis generates long list of resources and capabilities which play vital role in strategy formulation.
It determines the strength and weakness of the organization.
Etop Millipore
The document discusses an ETOP (Environmental Threat and Opportunity Profile) analysis for an organization. ETOP involves identifying and analyzing factors in an organization's external environment that could present threats or opportunities. These factors are divided into political, economic, social, technological, environmental, and legal sectors. The document provides an example of an ETOP analysis conducted for the company Millipore, identifying threats and opportunities they may face from factors in each sector.
Etop Millipore
The document discusses an ETOP (Environmental Threat and Opportunity Profile) analysis for an organization. ETOP involves identifying and analyzing factors in an organization's external environment that could present threats or opportunities. These factors are divided into political, economic, social, technological, environmental, and legal sectors. The document provides an example of an ETOP analysis conducted for the company Millipore, identifying threats and opportunities they may face from factors in each sector.
Stratmgmt3
The document outlines key concepts from Chapter 3 of Strategic Management: Concepts and Cases including performing an external audit to identify opportunities and threats. It discusses evaluating economic, social/demographic, political/legal, technological, and competitive forces using tools like Porter's Five Forces model and the External Factor Evaluation matrix. The purpose is to understand the external environment and its impact on an organization's strategy.
Strategic management
The strategic management process involves 6 steps: 1) defining the organization's mission and goals, 2) external analysis of opportunities and threats, 3) internal analysis of strengths and weaknesses, 4) formulating strategies to leverage strengths and address weaknesses, 5) implementing strategies, and 6) evaluating results and making adjustments. Key tools used include SWOT analysis, BCG matrix, Ansoff's growth matrix, Porter's five forces model, and identifying core competencies. The overall process allows organizations to systematically analyze their environment and capabilities to develop strategies that create a competitive advantage.
Chap2 Environment
The document discusses the external environment and organizational culture of businesses. It defines the mega-environment and task environment, explaining their key elements like technological, economic, sociocultural, political, and international factors. It also describes how environmental uncertainties can impact organizations and the methods used to manage the environment, like adaptation and forecasting. Finally, it outlines the importance of organizational culture and how visible artifacts and underlying assumptions shape culture.
Strategic Platform 2008
This document outlines the key steps and components of strategic planning, including performing an internal analysis to identify core competencies, selecting target countries and markets, analyzing competitors and customers, developing a "big idea" strategic choice, and allocating resources through the budgeting process. It also discusses establishing a strategic platform with the mission and objectives, analyzing the value chain, and controlling implementation through metrics like the balanced scorecard. Common mistakes in strategic planning are also listed such as using low quality data or not connecting analysis to clear conclusions and actions.
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