Industrial Engineering Department

Shoubra Faculty of Engineering

Benha University

Strategic Planning Developing &

Control
Under Supervision of Prof. Moustafa Zahran

Prepared and Presented by:

Ahmed Hassan;
Ghadeer Moustafa.
 What is Strategic Planning?

Is an organization’s process of defining its strategy, or direction,

and making decisions on allocating its resources to pursue this
strategy, including its capital and people.

Also known as The process of developing and maintaining a

strategic fit between the organization's goals and capabilities in
the light of changing marketing opportunities.
 Uses of Strategic Planning
Strategy Formulation Strategic Planning

Add new product line Understand the market needs

Analyse the market
Conduct feasibility study for new product line

Increase the profitability Increase sales

Reduce the costs
Expand market operations
Advertise more
Change the methods of production

Improve the customer relations Improve the quality

Increase after sale services
Improve the brand loyalty
Use customer friendly marketing methods
Improve the channels of distribution

Improve the company image Increase charitable spending

Improve employees morale
 Strategic Planning Key Questions
• All strategic planning deals with at least one of
the three key questions:
1. “What do we do?”
2. “For whom do we do it?”
3. “How do we excel?”

Although in business strategic planning, the third

question is better phased “How can we beat or
avoid competitors?”
 Main Techniques used in Strategic Planning
●
●
●
SWOT
EPISTEL
PEST
Environment,
Strength, Political,
Political,
Weakness,
Informatics, Social,
Economic, Social,
Opportunities, and
Technological, Economic
Development and Control
Analysis
Threats
and Technological. and Legal
Steps in Strategic Planning
Developing Growth Strategies

1. Market Penetration: promoting the company

growth by increasing sales of current products to
current markets.
2. Market Development: promoting growth by
identifying and developing new segments.
3. Product Development: promoting growth by
offering modified or new products.
4. Diversification: starting up or acquiring businesses
outside the current products and markets.
The Relationship Between Analysis, Planning,
Implementation and Control
Controlling and Evaluating
Performance

• Control: The process of measuring and evaluating the

results of the strategies and plans and taking corrective
action to ensure that objectives are attained.

• Audit: A comprehensive, systematic and periodic

examination of a company’s environment, objectives,
strategies and activities to determine problem areas and
opportunities and to recommend a plan of action to
improve the company’s performance.
The Control Process
 Strategic Control
• Control is taking measures that synchronize
outcomes as closely as possible with plans
• Traditionally, has been almost completely based on
financial performance
• Hence, top internal accounting officer became the
“In Charge” official for organization control policies
and procedures
• What do we call the chief accounting officer of an
organization?
• Answer: The Controller
 Strategic Control
• Strategic Control Methods
▫ Integrates Quantitative & Qualitative Measures
▫ Uses Financial and Non-financial information
▫ Customer (External) focus
▫ Rewards based upon relative contributions to
organization success
▫ Encourages desired organizational behavior

Planning Implementing

Control Cycle
Adjusting Measuring
 Benefits of strategic planning

Framework for budget

A Management Development Tool

mechanism to force managers to think for long run

Help in aligning managers towards the long-term direction of the

company

Framework for short-run actions

 Limitations of strategic Planning
it may consume the
A form
strategic
valuable filling
planning
time
is
of the
worse if the task is
bureaucratic
executives who
assigned to a separate
participate in strategic
exercise
departm ent
planning.
 References
The information in this technical report were gathered
from several websites and documents which used the
following references:
 
[1],***, CMEWorldEnergyCouncil–
EneryEfficencyAWorldwideReview, 2006; [2], ***,
Annual Energy Outlook, International Energy Outlook
2007; [3], ***, Energy Information Administration,
"Evaluation and Verification of Demand-Side
Management Programs," U.S. Electric Utility
Demand-Side Management 1993, DOE/EIA-0589(93)
(Washington, DC, July 1995); [4], ***, Integrated
Resources Planning and Demand-Side Management
Manual for China and Other Developing Countries,
2004; [5], ***, 1989-1992—Energy Information
Administration (EIA), Form EIA-861, "Annual
Electric Utility Report."1993 forward—EIA, Electric
Power Annual 2004; [6], Chateau, B., Jochem, E.,
Eichhammer, W., The Shared Analysis Project
Economic Foundations for Energy Policy, part 1:
Uncertain Driving Forces for
Changes in the Energy Systems, vol. 6, 1999; [7],
Leca, A., (coordinating), Principles of Energy
Management, Publishing House Technique, Bucharest
1997; [8], Loughran, D., Kulick, J., Demand-Side
Management and Energy Efficiency
in the United States, The Energy Journal, Vol. 25, No.
1. 2004;