Strategic Planning – Flashcards

Situational analysis, alternative goals and plans, goal and plan evaluation, goal and plan selection, implementation, monitor and control.

When planners gather, interpret, and summarize all information relevant to the planning issue in question. This studies past events, examines current conditions, and forecasts future trends. Internal forces.

Identification and diagnosis of planning assumptions, issues, and problems.

Stress creativity.

Specific, measurable, attainable (but challenging), relevant, time-bound.

Targets or ends the manager wants to reach.

The actions of means the manager intends to use to achieve goals.

"What if" plans. Include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Evaluation of the advantages/disadvantages and potential effects of each alternative goal and plan. Prioritize.

Once assessment is complete, they will select the one that is most appropriate and feasible.

A narrative that describes a particular set of future conditions. A different contingency plan is attached to each scenario.

Once managers select the goals and plans, they must implement the plans designed to achieve the goals. A plan must be linked to be successful.

Without this, you will never know whether your plan is succeeding or not.

Involves making decisions about the organization;s long-term goals and strategies. Strategic plans have a strong EXTERNAL orientation. Low level of detail, takes 3-7 years (long). The big picture. Figure 4.2

Major targets or results that related to the long-term survival, value, and growth of the organization.

A pattern of actions and resource allocations designed to achieve the goals of the organization. 1. Where will we be active? 2.How will we get there? 3. How will we win the marketplace? 4. How fast will we move and in what sequence will we make changes? 5. How will we obtain financial returns?

Broad strategic goals into specific goals and plans that are relevant to a definite portion of the organization. Medium time (1-2 years)

Frontline. High level of detail. Short time frame (<1 year). This is when you are working with customers directly. Specific manufacturing.

Involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

1. Establishment of mission, vision, and goals. 2. Analysis of external opportunities and threats. 3. Analysis of internal strengths and weaknesses. 4. SWOT analysis. 5. Strategy implementation. 6. Strategic control. (Figure 4.4)

Clear and concise expression of the basic purpose of the organization. What the organization does, for whom it does it, its basic goods or services, and its values. "To be our customers' favorite place and way to eat".

Points to the future. More long-term. "To be the world's most dynamic science company".

Environmental analysis.

Industry and market analysis, competitor analysis, political and regulatory analysis, social analysis, HR analysis, macroeconomic analysis, technological analysis.

Industry profile (major product lines and significant market segments in the industry), Industry growth (growth rates for the entire industry and for key market segments, projected changes in patterns of growth, and the determinants of growth), industry forces (threat of new industry entrants, of substitutes, economic power of buyers and suppliers, and internal industry rivalry.

Competitor profile (major competitors and their market shares), competitor analysis (goals, strategies, strengths, weaknesses of each major competitor), competitor advantages (the degree to which industry competitors have differentiated their products or services or achieved cost leadership).

Legislation and regulatory activities and their effects on the industry, political activity (the level of political activity that organizations and associations within the industry undertake).

Social issues (current and potential social issues and their effects on the industry), Social interest groups (consumer, environmental, and similar activist groups that attempt to influence the industry ).

Labor issues

Macroeconomic conditions (economic factors that affect supply, demand, growth, competition, and profitability within the industry).

Technological factors (scientific or technical methods that affect supply, growth, competition, and profitability within the industry).

Rival firms, new entrants, customers decide where to spend, substitutes/complements (customers can use alternatives and complementary products), suppliers (can affect firms in many ways such as switching costs

Financial, marketing, operations, other internal resource, HR assessments.

Examines financial strengths and weaknesses through financial statements such as a balance sheet and an income statement and compares trends to historical and industry figures.

Examines strengths and weaknesses of major marketing activities and identifies markets, key market segments, and the competitive position (market share) of the organization within key markets.

Examines the strengths and weaknesses of the manufacturing, production, or service delivery activities of the organization.

Examine, as necessary and appropriate, the strengths and weaknesses of other organizational activities, such as research and development (product and process), management information systems, engineering, and purchasing.

Strengths and weaknesses of all levels of management and employees and focuses on key human resources activities, including recruitment, selection, placement, training, labor relationships, compensation, promotion, appraisal, quality or work life, and planning.

inputs to production that can be accumulated over time to enhance the performance of a firm They can fall in one of two categories (tangible assets such as real estate, raw materials) or intangible assets (reputation, culture).

Strengths/weaknesses (internal) and opportunities/threats (external).

Unique skills, knowledge and resources that an organization has that gives advantage over competition.

Basic functions and skills over competition. Compare to another company. Get best practices of other firms to be better.

Identifies set of business, markets, or industries in which the organization competes and the distribution of resources among those businesses.

A strategy that focuses on a single business competing in a single industry.

Strategy that involves expanding the domain of the organization into supply channels or to distributors. Seeing a Tesla store in the mall.

Related products. A fast food restaurant starts to cater, airline catering, hotel food, etc.

Expansion into unrelated business. A company being an airline, hotel, food, etc.

Sequence of activities that flow from raw materials to the delivery of a good or service with additional value added at each step.

Defines the major actions by which an organization builds and strengthens its competitive position in the marketplace. (Differentiation and low cost).

Customized products, goal is to be unique, not cheapest.

Standardized, no frills, low price leader.