3) Strategic Planning

Strategic Planning

Strategy – A course of actions. Company's plan to match it’s internal strengths & weaknesses with external opportunities and threats while maintaining competitive advantages.

Strategic Management Process
1 Define Current B. & Mission 2 Internal/Ex. Auditd 3 Formulate New Business Mission 4 Translate mission into Goals

5 Formulate strategies to achieve Goals

6 Implement strategy

7 Evluate Performance

Strategic Planning

Strategic execuation

Strategic Evluation

Understanding the Concepts

Vision: A statement of Business direction which generates emotional feeling in organization's members. Mission: Spells out who the company is.. What it does.. and where it wants to move. SWOT Analysis: Chart used to compile & organize company's Strength, weakness, opportunities & threats. Strategic Controls: Process of assessing progress of strategic goals & taking corrective actions.

Types of Strategies
Corporate Strategy

Diversification – Expanding/adding new product lines. Vertical integration – firms expands by producing it’s own raw materials, selling it’s products Consolidation – reducing company size Geographic expansion – expanding the boundaries

Competitive Strategy
Meaning: How to built & strengthen the

business’s long term competitive position. This done by defining competitive advantage of any factor that allows a company to differentiate its product or service from it’s competitors. Cost leadership Differentiation Focuses a market niche

• • •

Functional strategy

Functional strategy identifies basic course of action that each department will pursue in order to attain it’s competitive goals. HR Marketing Operation

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