Strategic and Business Planning Flashcards
What is strategic planning?
- formula / map / overview of how your organization is going to operate and succeed in the end
- formal definition: Process of selecting an organization’s longterm goals, determining the policies and programs necessary to achieve specific objectives en route to those goals, and establishing methods to ensure that the policies and strategic programs are implemented
What is the purpose of strategic planning?
ensure you are doing the right things to accomplish superior, sustainable, and financial performance
What is the goal time frame that strategic planning’s effects should last?
long term (5-20 years)
What are the components of strategic planning?
- operational
- business
- financial
- resource
- organizational
- contingency
What are the phases in building the strategic plan?
pre-planning -> planning -> post-planning
Preplanning phase
- “planning for the planning”
- Define Vision and Mission
- Develop Slogan and Logo
- Identify key stakeholders (internal and external)
define vision statement
inspires / motivates the organization to get the organization where it wants to be or what it wants to achieve
What are example adjectives of vision statements?
- best-in-class
- pioneering
- state-of-the-art
- world-class
- visionary
- value-added
define mission statement
- Purpose of the organization; defines what the company does and what differentiates it from other companies
- Should be short (2 sentences) and concise
Planning phase
- Consider mission and vision (your destination)
- Goals / Objectives / Steps
- Responsibilities and timelines
- SWOT analysis
SWOT analysis
- Strengths, Weaknesses, Opportunities, and Threats
- Assess past and present
performance / situation of the organization
internal analysis
- Strengths: Gives organization competitive advantage
- Weaknesses: Areas for improvement; vulnerabilities
What are examples of internal analysis?
- brand name
- customer service
- business efficiency
- competence
- costs
- speed
- financial resources
external analysis
- Opportunities: Areas for expansion / improvement
- Threats: Factors that may hurt the business
What are examples of external analysis?
- regulation
- target market
- location
- economy
- costs
- technology
Post-planning phase
- Write & communicate plan
- Implement plan (operational plan)
- Monitor progress and modify as necessary (do reviews)
What is a business plan?
- formal document that contains background information about the intended opportunity and key participating members, as well as describes and details supporting information concerning attaining goals
- focus on specific program or business within the organization
What are the functions of a business plan?
- To formally plan / articulate the strategic direction for your business
- To communicate that strategic direction to people or firms that will provide funding for your business
- To use as a management guide in developing the business
What are the major sections of a business plan?
- executive summary
- meat of the plan
- exit strategy
executive summary
- most important section
- 1-2 pages long
- Conveys to the reader that you have an accurate understanding of your business and compels the reader to continue reading the details in the business plan
- Should be the last section you should write
meat of the plan
- Description of business & service
- Operational plan
- Management plan
- Marketing plan (research and advertising)
- Financial plan
Description of business & service
legal structure, hours, location, types of services and products offered
Operational plan
physical structure, work flow, equipment needed, insurance, security
Management plan
organization chart, roles and responsibilities of employees, how many employees
Marketing plan (research and advertising)
target market, market analysis, advertising
Financial plan
expenses, projected sales, cash flow, inventory, pro-forma income statement & balance sheet
exit strategy
- Formal protocol for determining when and why a decision would be made to terminate the business / service
- Clear actions for how the business / service will be dissolved
