Week 2 - Strategic Planning Flashcards
philip kotler’s three strategic planning steps:
planning, implementing, controlling
but actually more before planning
underlying goal of strategic planning is to understand current conditions…
identify problems, and develop potential alternative approaches
at the core, strategic planning is about matching opportunities with…
our resources
what’s more important than the plan?
the thought process that goes into planning - eisenhower: planning is everything, plans are nothing
what levels do plans occur at
corporate, division, product/marketing
they need to fit together
what happens when implimenting a plan?
start doing things, and consider possible impacting variables
what happens when controlling a plan?
collect/measure, diagnose impact, take corrective action
Kotler’s planning/implementing/controlling model erroniously assumes
continuous knowledge of internal and external variables
what’s kotler’s missing step?
defining the scope - what are we trying to tackle
what are some common scope focuses for strategic planning
target market, actual customers, competition
what’s the five step business planning process (vs Kotler’s three)
situational analysis opportunity and constraints analysis planning implementing controlling
what areas must a situational analysis examine?
external environments
industry and competitive situation
organisational characteristics
customer behavior
what questions should situational analysis answer
where am I now
where have I been
what aspects of customer behavior should situational analysis examine?
current customers
future and prospective customers
needs, wants, desires, and perceptions
situational analysis should drive unbiased views of both:
external conditions
and intra-organisational conditions
what three pieces should situational analysis output
environmental analysis
industry analysis
and consumer analysis
what should environmental analysis cover (within situational analysis)
demographics natural and geographic economic and financial legal and political social and cultural (much of the outer-bullseye from earlier)
what should industry analysis cover (within situational analysis)
company analysis
state of the industry
competitive analysis
define core competencies
what makes us better than the competition
example: interpersonal, strategic, operational, courageous, resourceful, energetic
company analysis considerations
company mission
marketing concept followed
corporate culture
historic objectives, strategy, and tactics
how do you assess company resources (within company analysis, as part of industry analysis, within situational analysis)
core competencies - why better than competition
managerial composition - qualifications, training, competencies, and if possible comparison to competition
employee relations - relations with management, qualifications, competencies, and potential gaps
how do you assess state of industry (within company analysis, as part of industry analysis, within situational analysis)
industry size differentiation barriers to entry/exit cost structures industry trends
beyond 3P state of industry reports, what should you identify?
technological environment, and our positioning within it
demand analysis, of our market (countries/cities/etc)
(if not included in state of industry report)
what do we care about in technology analysis (within state of industry, company analysis, industry analysis, situational analysis)
current tech and gaps we or competition might fill
anticipated changes
competitor and market adoption speed/response to tech
what should demand analysis identify (within state of industry, company analysis, industry analysis, situational analysis)
quantity demanded
market response to price changes
what does demand analysis guide
inventory levels
purchase decisions
personnel needs
what should competitive analysis address (within company analysis, industry analysis, situational analysis)
who are our competitors (substitutability determined by customers)
anticipate new competitors
examine competitors markets, marketing mix, primary marketing concept
perceptual mapping (customer perception)
competitive advantage
what is a perceptual map?
a visual diagram of how companies compare along various axes (normally two) of consumer perception
what is competitive advantage?
establish a differentiation that (1) customers believe and (2) they are willing to pay for
what is a sustainable competitive advantage?
a competitive that is very difficult for someone to replicate (patents, people, efficiencies)
what should consumer analysis address (within situational analysis)
segmentation analysis - divide the population into meaningful groups
consumer profiles - describe each segment with data
target markets - select 1 or more segments to serve
when should situational analysis data be collected?
on an ongoing basis so that you can constantly have a robust, well developed situational analysis ongoing
which step of strategic planning do most companies want to skip?
situational analysis
- it’s hard with out immediate results
- we think we already now everything
what happens in the opportunity and constraints step?
apply situational analysis to the company
creative interpretation to guide your strategic planning process
- SWOT analysis is a common method
what is SWOT?
strengths (positive internal)
weaknesses (negative internal)
opportunities (external)
threats (external)
internal vs external
positive vs negative
why do people not like SWOT
real world doesn’t fit the quadrant - not MECE
eg, opps mirror strengths
what happens in the planning step?
apply opps and constraints
to create a range of strategic alternatives
then decide which to select
what are the steps within the planning phase?
objectives
strategies
tactics
what questions are answered during objectives (within planning phase)
where do you want to go? what’s your end destination?
specific, measurable objectives
what’s wrong with this objective: “increase the budget by 10%”?
it is a good goal, but it’s not a good final goal
this is not the end goal, it’s a step on the way
this is a tactic
what questions do strategies answer?
what is the path we want to take?
what are the routing directions?
guiding principles: eg, marketing mix
what are michael porter’s three generic strategies?
cost leadership (ie, low price) differentiation (eg, skimming = start highest price and lower as needed, luxury goods) focus (eg, niche targeting)
stuck in the middle is the worst - not doing anything strategic
what questions do tactics answer?
what method will I use to get there? what steps will I take?
the actions to implement the plan
how detailed should strategic plans be?
you shouldn’t even be needed to carry it out
perhaps in a calendar
certainly in great detail - user friendly
what are implimentation and control in the context of road tripping?
implementation is driving, control is keeping on the road in working condition
both are done in parallel (or really mini loops)
what happens during the control phase?
tests to make sure we’re on track
- client perceptions
- performance vs plan
- competitive reaction
what strategic models are we looking at?
strategic business units
boston consulting matrix
general electric model
ansoff’s product model
what is the “strategic business unit” strategic model?
not really a model - more of a business structure
decentralised decision making
separate “SBU” groupings (products, product line, etc) that operate independently - as if separate companies
what is the Boston Consulting Matrix?
older model, but still useful - especially for valuing “strategic business units”
basic quadrant: market growth vs market share
stars - fast growing units
cash cows - large share, low growth
question marks - low share, large growth
dogs - low, low
what is the GE / McKinsey Model?
similar to BCG model - but a 3x3 matrix Business Unit strength (low/medium/high) Market Attractiveness (same)
what is Ansoff’s Product Model / Ansoff Matrix?
different by looking at products within SBUs
2x2 matrix
market (new / existing)
product (new / existing)
EE - market penetration
EN - product expansion
NE - market expansion (new market)
NN - diversification (new / new)
