Transcript Strategic Planning - California Virtual Enterprise New

Strategic Planning
In a Competitive Marketplace
Strategic Planning Process

Necessary for large corporations to
survive & prosper
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
Budget/Forecast oriented planning is no
longer enough
Strategic Planning
Defines objectives
 Assesses internal & external situation
 Strategies formulated & implemented based
on actual situation
 Evaluation leads to adjustments to stay on
track

The Planning Process
Mission &
Objectives
Environmental
Scanning
Strategy
Formulation
Strategy
Implementation
Evaluation &
Control
The Sigmoid Curve
Typical Life Cycle
The Secret to Constant Growth:
(Start a New Life Cycle)
The Mission & Objectives
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Mission Statement - Describes the
Company’s Business Vision
Unchanging values
 Purpose of company
 Visionary goals that guide the pursuit of
future opportunities
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Objectives – guided by company’s vision
Measurable financial & strategic objectives
 Ex: Sales targets, market share, reputation
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Environmental Scan
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Includes the following:
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SWOT Analysis
 Strengths/Weaknesses
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Industry Analysis
 PEST
Analysis (Political, Economic, Social,
Technological)
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Competitive Analysis
 Rivalry
 Threat
of Substitutes
 Buyer Power
 Supplier Power
 Barriers to Entry/Threats to Entry
Strategy Formulation
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Given environmental conditions,
Match strengths to opportunities identified
 Address weakness and external threats
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Competitive Advantage - How will you
gain an advantage over your
competition?
 Cost
Leadership Strategy – low cost producer
 Differentiation Strategies
 Focus Strategies - segmenting
Strategy Implementation
Implementation - programs, budgets, and
procedures to be used
 Implementation involves:
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Organization of company resources
 Motivation of staff to achieve objectives
 Usually different people than those who
formulate the strategies
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How strategies are implemented can have
a significant impact on success
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Executives must communicate strategies
effectively & reasons behind them
Evaluation & Control
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Implementation of strategies must be
monitored and adjusted if needed
Evaluation & Control Process
1.
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5.
Define parameters to be measured
Define target values for those parameters
Perform measurements
Compare measured results to the predefined standard
Make necessary changes