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October 3 & 10 … 2013
Session 1 - 4
Our goal? Learn about & practice all steps
of strategic planning process
• Choose a company for which to formulate a strategic business plan
• Identify / formulate:
- mission statement – framework w/in which strategy
shall be crafted
- corporate vision – where do we want to be in # years
- business aims -> specific objectives
• Scan the environment – carry out external, internal & industry
analysis -> situational analysis
-> Internal analysis - core business & competencies, resources
available, corp. structure, required inputs,
corp. culture
=> IFAS (Internal Factor Analysis Summary)
Our goal? Practice all steps of strategic
planning process
• Environment scanning cont’d:
-> External analysis - PEST(LE) => EFAS (External Factor Analysis
- Industry Analysis (task environment):
-> Porter’s Five (Six) forces => Industry Matrix
- Situational Analysis – finding a strategic fit b/w external opportunities & internal strengths
- mitigating harmful effects of external threats
due to internal weaknesses
=> SFAS (Strategic Factor Analysis Summary) => SWOT analysis
Strategic Management Model
Existing business model
Mission, vision, goals, objectives, corp.
analysis ->
Functional-level strategies
Business-level strategies
Corporate-level strategies
Strategy implementation
analysis ->
Strategic Management Cycle
Strategic management – mgmt for
distant horizons
• Series of destinations which are coming closer with
time for everyone
– Where was the company yesterday? (if applicable)
– Where is the company now ($, ext. environment, market)? What
conditions is it in (internally)?
– Where will the company be tomorrow? vs. Where can the company
be tomorrow? vs. Where is the company likely to be tomorrow – if we
do a, b, c, or nothing at all?
• Nothing happens by itself =>
1. => What are the business objectives? -> WHERE TO?
2. => What are the best ways to achieve these objectives? ->
3. => What resources are necessary to execute the plan? ->
Which sector? What company? … your
Mission statement
• Statement of purpose of existence and operations of a
company w/info including:
– Why are we here? -> purpose – PAST & NOW and FUTURE
– Corp. aims
– How do we add value to stakeholders? -> How do we fulfill our
The WHY …
Mission statement
• More specific mission statements may spell out:
– What target market we wish to serve?
– With what good/service -> product?
– How are we unique - w/product, w/how we operate (e.g.
environmental friendly)
• Problems, questions?
Which companies do these mission statements
• "To experience the joy of advancing and applying technology for the
benefit of the public“
• "To build a place where people can come to find and discover anything
they might want to buy online."
• "To produce high-quality, low cost, easy to use products that incorporate
high technology for the individual. We are proving that high technology
does not have to be intimidating for non-computer experts.
Mission statements
Take a wild guess
BMW vs. Mercedes
McDonalds vs. KFC
IBM vs. Apple
Acer vs. Dell
Google vs. Yahoo
Mission statements – conclusion?
Questions to consider
• Why are some mission statements similar?
• Why do they look so broad or general?
• Would it pay to narrow a mission statement down?
Your task
• For the company of your choice, formulate a mission
statement in your own words based on your current
knowledge about the company.
• Identify the mission statement based on your research.
Vision statement
• Company image in the future
– What it wants to become by a certain point in time -> where it wants
to go and how it intends to get there
– May also be roughly considered as a framework for strategic planning
• The audience? …. Stakeholders & market
– Employees – it provides direction and guidelines for their conduct and
should be inspirational
– Banks – what they may be likely to finance
– Shareholders – what projects are likely to bring more $ to them
– Consumers / customers – what products to keep an eye for …
Corporate vision
“… be the world's best quick service restaurant experience. Being
the best means providing outstanding quality, service, cleanliness, and value, so that
we make every customer in every restaurant smile.“
"To become the most successful and respected lift truck company in the U.S.”
Avery Dennison :
"To be recognized as the world's best coating and converting company by providing
innovative decorating, information transfer and bonding solutions that enable our
customers' success.“
- Manufacturing pressure sensitive labeling materials, retail apparel ticketing, graphics
imaging media , office products, specialty tapes
Corporate vision
Your task
• Identify the corporate vision for your company
• Can be found directly in the vision statement or derived from a mix
of information provided by top management.
• Will be subject to re-evaluation / reconsideration after SWOT
analysis based on EFAS, IFAS, and SFAS are performed