strategic planning class - copy

8/8/2019 Strategic Planning Class - Copy

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Strategic Planning

PREPARED ANDPRESE TED BY PRI GAL


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What Is Strategic

Planning?

A process for determining Where you are` Where you intend to be

How youre going to get there

Clearly define objectives, assess both internal

and external situation to formulate strategy,implement and evaluate the progress andmake adjustment to stay on track



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a s ra eg cPlanning?

S.P is anorganization'sprocess of definingits strategy, or direction, and makingdecisions on allocating its resources to pursuethis strategy, including its capital and people.

Various business analysis techniques can beused in SP

SWOT analysis(Strengths, Weaknesses, Opportunities,and Threats ),

PEST analysis(Political, Economic, Social, andTechnological),

STEER analysis (Socio-cultural, Technological, Economic,Ecological, and

Regulatory factors), EPISTEL (Environment, Political, Informatic, Social,


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Where are we now? (Assessment) Where do we need to be? (Gap / Future End

State) How will we close the gap (Strategic Plan) How will we monitor our progress (Balanced

Scorecard)

What Is Strategic

Planning?



Scorecard)


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Prepared and Presented ByPRINGAL SONI



Scorecard)

What Is Strategic

Planning?

Process to establish priorities on what youwill

accomplish in the future Forces you to make choices on what you willdo

and what you will not do Pulls the entire organization together arounda

single game plan for execution Broad outline on where resources will getallocated


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Strategic Planning:

4 Steps

1.Setting Vision, Mission Objective

2. Environmental Scanning

3. Strategy Formulation

4. Strategy Implementation

5. Evaluation and Control



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Major Components of theStrategic Plan / Down to Action

Mission

Vision

Goals

Objectives

Measures

Why we exist

What we want to be

Indicators andMonitors of success

Desired level ofperformance and

timelines

Planned Actions toAchieve Objectives

O1 O2

S1 S2 S3

M1 M2 M3

T1 T1 T1

Specific outcomes expressedin measurable terms (NOTactivities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Strategies

What we must achieve to be successful


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Environmental

ScanningEnvironmental scanning is the ability toidentify strategic factors (both external andinternal to the organization) that can

significantly impact the firm's businessoperations.

Environmental scanning requires the abilityto assess the internal strengths and weaknessof the organization as well as the externalopportunities and threats to the organization.

We Can use PEST, SWOT,Porters five forces forindustrPREPARED AND

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Strengths, Weakness, Opportunities

and Threats (SWOT) Model

Internal

1. strengths of the organization

2. weaknesses of the organization

SWOT Model



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The External Environment

The external environment can include a number of differentforces that can impact the performance and operations of anorganization, including:

1. Competitive Factors

2. Political/Legal Factors

3. Economic Factors4. Technological Factors

5. Sociocultural Factors



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Competitive Factors

Competitive factors are thebusiness strategies andactions of ones competitors.

The competition may havedesigned a better productor service. Examples:

Sony vs. Microsoft Videogame

Rin Vs Tide

Nokia vs. Motorola Cellular

Verizon vs. AT&T Telephony Click to edit Master text stylesSecond level

Click to edit Master texSecond level

Third level Fourth level

Fifth level


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`Political/Legal

FactorsPolitical/legal factors represent changes in thepolitical and regulatory environment that cansignificantly influence the business operations of a

company or organization.Examples:SEZ

FDI Limits

VAT, Custom and other taxes

RBI and SEBI Regulation ob banks and FI


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E c o n o m i c F a c t o r s

Economic factors aremarketplace changes that canhelp or adversely affect your

business operations.1. Spiraling inflation

2. Economic recession

3. Natural calamity4. The availability of a

product substitute

Click to edit Master text stylSecond level

Third level Fourth level

Fifth level


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T e c h n o l o g i c a lF a c t o r s

Technological factorsrepresent advancements innew technologies that canhelp or adversely affectones business.

1. Camera cell Phone

2. Set Up Box

3. Apple iPhone

3. MP3 File Sharing

4. Cable Modems

5. High Definition Television

Technological factorsrepresent advancements in

new technologies that canhelp or adversely affectones business. 1. Camera cell Phone

2. Set Up Box

3. Apple iPhone 3. MP3 File Sharing

4. Cable Modems

5. High Definition Television 6.Laptops


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Sociocultural

FactorsSociocultural factors are social/cultural changes in theenvironment that may affect a

consumer's buying habits, productusage etc.

Examples:

1. Consumer reaction to animal furs, etc

2. Student attitudes about software piracy

3. Privacy and security while purchasing

merchandise on the Internet.

Sociocultural factors aresocial/ cultural changes

in the environment thatmay affect a consumer'sbuying habits, productusage etc.

Examples:1. Consumer reaction to animal furs,

etc

2. Student attitudes about softwarepiracy

3. Privacy and security whilepurchasing


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Strategy Formulation

To attain a superior profitability a firm shoulddevelop acompetitive advantage to its rival. ACompetitive advantage

Can be based on cost and differentiation.

After environmental scanning, firm shouldmatch it strength

to the opportunities and addressing itsweaknesses andThreat.Ex:- Moser Bear, Videocon mobile, Fiat, Maruti

Suzuki


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Strategy Formulation

Selecting Strategy

Corporate strategy (Stability, Growth,

Retrenchment)

Business strategy (Competitive,Cooperative)

Functional strategy (TechnologicalLeadership,

Technological Followership)


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Strategy FormulationStrategy Formulation

How the strategic goals will be accomplished.specifying objectives, with each strategic

goal. in that sense,an objective is still a goal, but on a smallerscale.

Objective is associated with strategy, which isone of the methods needed to reach anobjective.

Exam le-Ob ective 20%increase in sales Strate - Discount


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Strategy Implementation.

The selected strategy is implemented bymeans of programs, budgets, and procedures.Implementation involves organization of thefirm's resources and motivation of the staff toachieve objectives.

The way in which the strategy is implemented

can have a significant impact on whether it willbe successful.The people who formulate n implementstrategy are different, so it must be

communicated well. Misunderstanding at lower


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Strategy Evaluation.

The implementation of the strategy must bemonitored and adjustments made as needed.Evaluation and control consists of the followingsteps:

1.Define parameters to be measured

2.Define target values for those parameters3.Perform measurements4.Compare measured results to the pre-defined standard

5.Make necessary changes



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The most common method for strategic planning isthis(That we have studied)

Vision - Define the vision and set a mission statement with

hierarchy of goals and objectives

SWOT - Analysis conducted according to the desired goals

Formulate - Formulate actions and processes to be taken to

attain these goals

Implement - Implementation of the agreed upon processes

Control - Monitor and get feedback from implemented processesto fully control the operation

Methodology


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METHOD 2Situation - evaluate the current situation and how it came about.

Target - define goals and/or objectives (sometimes called idealstate)Path - map a possible route to the goals/objectives

Methodology

METHOD3 Draw-See-Think

Draw - what is the ideal image or the desired end state?See - what is today's situation? What is the gap from ideal andwhy?Think- what specific actions must be taken to close the gapbetween today's situation and the ideal state?Plan - what resources are required to execute the activities?


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An alternative to the Draw-See-Thinkapproach is called See-Think-Draw

See - what is today's situation?

Think- define goals/objectives

Draw - map a route to achieving the goals/objectives

Methodology

Strategic Planning Model


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EnvironmentalScan

Assessment

BackgroundInformation

SituationalAnalysis

SWOT Strengths,Weaknesses,Opportunities,Threats

Situation Past,Present andFuture

SignificantIssues

Align / Fit withCapabilities

Mission &Vision

Values /GuidingPrinciples

Major Goals

SpecificObjectives

PerformanceMeasurement

Targets /Standards ofPerformance

Initiatives andProjects

Baseline Components

PerformanceManagement

Review Progress BalancedScorecard

Take CorrectiveActions

Down toSpecifics

Evaluate

Where we are Where we want to be How we will do it How are we

doing

Gaps Action Plans

Feedbackupstream revise plans

Strategic Planning ModelA B C D E


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T h a n k Y

o u


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strategic planning class - copy

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