Week 8: Strategic Planning Flashcards
strategic planning
Defining goals, establishing objectives for achieving these goals, and
develop plans to integrate and coordinate activities related to the
achievement of these goals
Strategic planning is concerned by the end (what should be done)
and the means (how it is done)”
levels of strategy
corporate
business
functional unit
levels of strategy - corporate
Strategies followed by an organization as a whole
levels of strategy - business
Asks how to compete within a particular industry
levels of strategy - functional unit
Strategy for a particular business units such as
sales, marketing, or finance
5 step process of strategy
- strategy analysis
- strategy direction
- strategy formulation
- strategy implementation
- strategy evaluation
Stage 1: Strategy
Analysis
SWOT Analysis
Stage 2: Strategy
Direction
The 5 parts of it
Strategic Direction → Growth v Sustain v Defend
1. Mission Statement
2. Vision statement
3. Values
4. Strategic Pillars
5. Organizational Objectives
Mission Statement
Identifies:
* Purpose
* What we do
* How we do it
* Philosophy
* Who we are
* Why we do it
Purpose:
* Guide strategic planning
* Define scope
* Provide purpose
* Promote shared expectations
Vision Statement
Identifies:
Medium- to long-range ambitions
Purpose:
Promotes commitment
Gives an orientation
Motivates people
Establishes standards
values
What is important
Organization principles
Strategic Pillars
Overarching goals that the organization wants to achieve
Organizational Objectives
SMART
Specific ways to achieving the vision
SMART Objectives
* Specific
* Measurable
* Attainable
* Relevant
* Time-bound
Elements of Strategic
Direction
Mission Statement → Purpose of the organization
Vision statement → Long-term direction
Values → What is important to the organization
Strategic Pillars → Broad long-term goals
Organizational Objectives → Specific sport-term means of
achieving goals
Stage 3: Strategy
Formulation
What will be your competitive advantage?
* What will you offer that no one else offers/you offer better than everyone
else
Stage 3: Strategy
Formulation - common options
Common options
* Cost Leadership: To become a cost leader by supplying products and
services at the lowest possible cost to as many customers as possible
* Differentiation: To provide a differentiated set of products and services
that is difficult for competitors to replicate
* Focus: To provide a set of products and services to a niche in the
market with the intention of dominating market share
Stage 4: Strategy
Implementation
Most complex phase of the process
Strategic plan → Operational plan
* Targeted goals
* Tasks to achieve those goals
* Inside responsibilities
* Maintaining norms
* Methods and performance measures
* Evaluation of the plan
Stage 5: Strategy
Evaluation
Performance measure (Next Topic)
Key Performance Indicators: Quantitative that show Progress and
Result
