Planning

CLASS 2
Calm Seas

 Let’s read about Calm Seas

Planning Process

1. Determine what you want to do

2. Decide how to plan to accomplish it
3. Determine why you want to do it
Stakeholders

 People or organizations that are affected by the company or can

influence the company
 Internal Stakeholders
 External Stakeholders
Stakeholders

 Customers Employee
Unions
 Supplier Organizational Culture
 Competitors Shareholders

 Government
 Public
 Market Demand
 Technological Developments
 Demographic Conditions
Calm Seas Stakeholders

 Internal
 External
Strength, Weakness,
Opportunity, and Threat
Analysis (SWOT)

 SWOT Analysis
 Strength
 Weaknesses
 Opportunities
 Threats
SWOT
STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS
SWOT for Calm Seas

 List them
Competitive Advantages

 Faster
 Bigger
 Cheaper
 Stronger
 More luxurious
 Locally produced or locally sourced suppliers
 Sustainable
 Customer-oriented
 Better
Competitive Advantages of Calm
Seas
 List them
Michael Porter’s Generic Strategies

1. Cost Leadership Strategy

2. Differentiation Strategy
3. Focus Strategy
1. Cost Leadership Strategy

 Pursue lower costs

 Reduce your selling price so increase market share
 Match competitors’ price and make more profit
Differentiation Strategy

 Ensure that your product stands out

 Quality
 Features
 Service

 Can charge a higher price

Focus Strategy

 Concentrate on a market niche

 Understand that group of customers very well
 E.g. Kayaks for disabled users, or for children
Other Strategies

1. Growth
2. Stability
3. Retrenchment
4. Combination
1. Growth Strategy

 Expand production
2. Stability

 Maintain the current situation

 No new markets
 No new products
3. Retrenchment

 Cut back
 Sell some assets
 Lay off employees
 Get out of some countries
4. Combination

 Grow in some areas such as expand sales in a particular type of

kayak
 Maintain in other areas such as keep the same number of
distributorships in the US market
 Cut back in some areas such as reduce the amount or types of
kayaks they plan to make
Example
Action/Implementation Plan

 Decide on how you are going to achieve the goal

Action/Implementation Plan
What is to be Done Who is Responsible Steps and When Due
Action/Implementation Plan
HW

1. Based on the SWOT analysis from class, decide on an action plan for Calm Seas.
The plan should have at least 2 goals (the what?), who is responsible, and 5
steps with dates to accomplish the goals.

2. Evaluate the mission statements of two local companies. Your evaluation should
include but is not limited to the following:
 Clarity of the statement.
 Does the company's mission statement communicate its purpose?
 Would the statement provide guidance to decision making in the
organization?

3. In no more than 200 words, discuss how “competitive advantage” relates

to/affects organizational planning.