Business Strategic Planning

PARAMJIT SHARMA

Business Strategic Planning

COMPANY’S NEED TO Review and Revise its •IMPLEMENTATION , •PROGRAMMES •STRATEGIES, EVEN •OBJECTIVES

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Business Strategic Planning

External Environment Analysis Opportunity Threat Goal Formula tion Internal Environment Analysis Strengths Weaknesses

Business Mission

Strategy Programe Impleme Formu Formu tation lation lation

Feedback & Control

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Business Strategic Planning

Business Mission

Each company needs to develop its specific Mission within the broader company mission Mission Does not attempt to win business from Smaller organizations or win business by being lowest in price

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SWOT ALAYSIS
Business Strategic Planning

Monitor Key

1 Macro Environment Forces 2 Micro Environment Forces 3 Setup Market Intelligence

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Opportunity Analysis
Business Strategic Planning

Opportunity
1 Attractiveness 2 Success Probability

SUCCESS PROBABILITY DEPENDS UPON PROVIDING GREATEST CUSTOMER VALUE SUSTAIN IT OVER A TIME

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Business Strategic Planning ATTRACTIVENESS

SUCCESS PROBABILITY

Opportunity Matrix

High

Low

HIGH

1

1

2 4

1 Mgt pursue as both SP & A are High 4 SP & A ARE TOO MINOR TO BE PURSUED

LOW

3 3

2&3 SHOULD BE MONITORED & PURSUED

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Probability of Occurrence

Threat Matrix

High
Business Strategic Planning

Low Seriousnes s

HIGH LOW

1

2 4

3

1 an ideal business –major opportunities, low major threat 2 Speculative in opportunities & Threats 3 Major Business-major opportunities, low threats 4 Troubled Business-low in opportunities, high in threats
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Business Strategic Planning

Internal Environment Strengths & Weaknesses

Reviewing Marketing Financial Manufacturing Organizational-Competencies
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Major Strengths

Minor & Major Weaknesses

Business Strategic Planning

GOAL FORMULATION 4 Criteria's
•Must Be arranged hierarchically, from the most to the least •To be stated Quantitatively where ever possible •Goals Should be realistic •Must be consistent –not possible to maximize sales & Profits Simultaneously

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Other Goals
Business Strategic Planning

•Short term profit Or long Term Growth •Deep Penetration Of Existing Markets •vs Developing New Markets •Profit Goals Versus Non Profit Goals •High Growth versus Low Risk
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Strategic Formulation
Business Strategic Planning

•Goals indicate what business unit wants to achieve •Strategy is a game plan for getting there •Every business must tailor a strategy for achieving its goals

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Business Strategic Planning

3 Strategies
1 Marketing Strategy 2 Technology Strategy 3 Sourcing Strategy

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Michael Porter- 3 generic Types
Business Strategic Planning

1 Overall Cost Leadership- Lowest Price

2 DifferentiationService leader, Quality Leader Style Leader Technology Leader 3 Focus -Focus on Narrow market Segment ,

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Strategic Alliance
Business Strategic Planning

4 Major Categories

Product Or Service Alliance Promotional Alliance Logistic Alliance Pricing Collaborators

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Program Formulation
If technological Leadership is to be achieved
Business Strategic Planning

Must Strengthen

R&D Department Gather Technological Intelligence

Develop Leading Product

Train Sales Force

Communicate Technical Leadership

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SONY,IBM,COKE, XEROX,CASIO,KODAK

ImplementationBusiness Strategic Planning

7S

Structure

Strategy

Shared Vales

Systems

Skills Staff
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Styles

ImplementationBusiness Strategic Planning

7S

Strategy ,Structure, Systems are Hardware's

Style, Skills, Staff & Systems are Software’s

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ImplementationBusiness Strategic Planning

7S

Style – co’s employees share common way of behaving, McDonald- employees give smile to customers
IBM -Professional in dealing with customers Skills -skills needed to carry strategies Staffing Hired right type of people Shared Values— Employees share same values

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FEED BACK & CONTROL
Business Strategic Planning

•Track results •Monitor New Developments •Some Environments are Stable Unpredictable •Some Change Rapidly

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