Strategic Planning

Overview
The Strategic Process
Vision and Mission Objectives Analysis Implementation Case Study

Strategic Management Process

External Environmen t Assessment

Task 1
Develop a Strategic Vision and Mission

Task 2

Task 3
Craft a Strategy to Achieve Objectives

Task 4
Implement and Execute Strategy

Task 5
Monitor, Evaluate, and Take Corrective Action

Set Objectives

Internal Environmen t Analysis

Revise as Needed

Revise as Needed

Improve/ Change

Improve/ Change

Recycle as Needed

Vision and Mission

Vision
Who we want to be and where we want to go? Mission Customer needs Customer groups Company activities, technologies, competencies HOW WE CREATE VALUE Stakeholders and responsibilities

Example

Empower people through great software anytime, anyplace, and on any device.

Example
DELTA AIRLINES
. . . . . . we want Delta to be the

WORLDWIDE AIRLINE OF CHOICE.

Example-Continued
DELTA AIRLINES WORLDWIDE, because we are and intend to
remain an innovative, aggressive, ethical, and successful competitor that offers access to the world at the highest standards of customer service. We will continue to look for opportunities to extend our reach through new routes and creative global alliances

Example-Continued
DELTA AIRLINES

AIRLINE, because we intend to stay in the

business we know best -- air transportation and related services. We wont stray from our roots. We believe in the long-term prospects for profitable growth in the airline industry, and we will continue to focus time, attention, and investment on enhancing our place in that business environment

Types of Objectives Required

Financial Objectives
Strategic Objectives
Outcomes focused on improving long-term, competitive business position

Outcomes focused on improving financial performance

Financial Objectives

Grow

earnings per share 15% annually

Boost

annual return on investment (or EVA) from 15% to 20% within three years

Strategic Objectives
Increase firms market share Overtake key rivals on quality or

customer service or product performance

Attain lower overall costs than rivals

External Analysis

Economic Sociocultural

Global

Industry and Competitor

Demographic

Politicallegal

Technological

Industry Analysis
Substitute Products
(of firms in other industries)

Suppliers of Key Inputs

Rivalry Among Competing Sellers

Buyers

Potential New Entrants

Internal Analysis
A distinctive competence is a

competitively significant activity that a company performs better than its competitors

Examples
Sony Corporation
Expertise in flat-panel display technology

Toyota, Honda, Nissan

Low-cost, high-quality manufacturing capability and short design-to-market cycles

Company Value Chain

Primary Activities and Costs
Purchased Supplies and Inbound Logistics

Operations

Distribution And Outbound Logistics

Sales and Marketing

Service

Profit Margin

Product R&D, Technology, Systems Development

Human Resources Management

General Administration

Support Activities and Costs

Implementing and Executing

Allocating Resources Building a Capable Organization Establishing StrategySupportive Policies

Exercising Strategic Leadership

Strategy Implementers Action Agenda

Instituting Best Practices for Continuous Improvement

Shaping Corporate Culture to Fit Strategy Tying Rewards to Achievement of Key Strategic Targets

Installing Support Systems

Case Study
Equipment Modernization
What are we or will we be doing? What is available?
Cost
Material, training, upgrade (phased implementation or)

Competing technology System integration

What are the trade offs?

Efficiency vs effectiveness Risk assessment

Case Study
What are we or will we be doing?
Customers (students)
Profile of needs, abilities, resources

Employers
Profile of needs (numbers, skills, entry level)

Staff
Training, hiring, retaining

Case Study
What is available?

Competing technology and programs Costs (initial, maintenance, upgrade) System integration LINK TO MISSION i.e. students, employers

Case Study
What are the trade-offs
Efficiency versus effectiveness Risk assessment

Acquisition options Supplier support Insurance Growth Flexibility