strategic planning developing & control

8/9/2019 Strategic Planning Developing & control

1/15

Strategic Planning Developing &Strategic Planning Developing &ControlControl

Under Supervision of Prof. MoustafaZahran

Prepared and Presented by:Ahmed Hassan;Ghadeer Moustafa.

Industrial Engineering Department

Shoubra Faculty of Engineering

Benha University


2/15

What is Strategic Planning?

Is an organizations process of defining itsstrategy, or direction, and making decisionson allocating its resources to pursue thisstrategy, including its capital and people.

Also known as The process of developingand maintaining a strategic fit between theorganization's goals and capabilities in thelight of changing marketing opportunities.


3/15

Strategy Formulation Strategic Planning

Add new product line Understand the market needsAnalyse the marketConduct feasibility study for new product line

Increase the profitability Increase salesReduce the costsExpand market operations

Advertise moreChange the methods of production

Improve the customer relations Improve the quality

Increase after sale servicesImprove the brand loyaltyUse customer friendly marketing methodsImprove the channels of distribution

Improve the company image Increase charitable spendingImprove employees morale


4/15

Strategic Planning Key Questions

All strategic planning deals with at least one of

the three key questions:1. What do we do?

2. For whom do we do it?

3. How do we excel?

Although in business strategic planning, the thirdquestion is better phased How can we beat oravoid competitors?


5/15

Main Techniques used in StrategicPlanning Development and Control

SWOT

Analysis

PESTAnalysis

EPISTEL

Strength,Weakness,

Opportunities, andThreats

Political, Economic,Social, andTechnological.

Environment, Political,Informatics, Social,Technological,Economic and Legal


6/15

Steps in Strategic Planning


7/15

Developing Growth Strategies

1. Market Penetration: promoting the companygrowth by increasing sales of current products to

current markets.2. Market Development: promoting growth by

identifying and developing new segments.3. Product Development: promoting growth by

offering modified or new products.

4. Diversification: starting up or acquiring businessesoutside the current products and markets.


8/15

The Relationship Between Analysis, Planning,

Implementation and Control


9/15

Controlling and Evaluating

Performance

Control: The process of measuring and evaluating theresults of the strategies and plans and taking correctiveaction to ensure that objectives are attained.

Audit:A comprehensive, systematic and periodicexamination of a companys environment, objectives,

strategies and activities to determine problem areas andopportunities and to recommend a plan of action toimprove the companys performance.


10/15

The Control Process


11/15

Strategic ControlStrategic Control

Control is taking measures that synchronizeoutcomes as closely as possible with plans

Traditionally, has been almost completely based onfinancial performance

Hence, top internal accounting officer became theIn Charge official for organization control policiesand procedures

What do we call the chief accounting officer of anorganization?

Answer: The Controller


12/15

Strategic ControlStrategic Control Strategic Control Methods

Integrates Quantitative & Qualitative Measures

Uses Financial and Non-financial information

Customer (External) focus

Rewards based upon relative contributions to

organization success

Encourages desired organizational behavior

PlanningImplementing

MeasuringAdjusting

Control Cycle


13/15

Benefits of strategic planning

Framework for budget

A Management Development Tool

mechanism to force managers to think for long run

Help in aligning managers towards the long-termdirection of the company

Framework for short-run actions


14/15

Limitations of strategic Planning

A form filling bureaucratic exercise

it may consume the valuable time ofthe executives who participate in

strategic planning.

strategic planning is worse if the taskis assigned to a separate department


15/15

ReferencesThe information in this technical report were gathered

from several websites and documents which used the

following references:

[1],***,CMEWorldEnergyCouncil

EneryEfficencyAWorldwideReview, 2006; [2],***,

AnnualEnergy Outlook, InternationalEnergy Outlook

2007; [3],***,Energy Information Administration,

"Evaluation and Verification of Demand-Side

Management Programs,"U.S. Electric Utility

Demand-Side Management 1993, DOE/EIA-0589(93)

(Washington, DC, July 1995); [4],***,Integrated

Resources Planning and Demand-Side Management

Manual forChina and Other DevelopingCountries,

2004; [5],***,1989-1992Energy Information

Administration (EIA), Form EIA-861, "Annual

Electric Utility Report."1993 forwardEIA, Electric

Power Annual 2004; [6], Chateau, B., Jochem, E.,

Eichhammer,W.,The Shared Analysis Project

Economic Foundations forEnergy Policy, part 1:

Uncertain Driving Forces forChanges in the Energy Systems, vol. 6,1999; [7],

Leca, A.,(coordinating),Principles ofEnergy

Management, Publishing House Technique, Bucharest

1997; [8], Loughran, D., Kulick, J.,Demand-Side

Management andEnergy Efficiency

in the United States, The Energy Journal, Vol. 25, No.

1. 2004;

strategic planning developing & control

Documents