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
 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 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
 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
 See page 26 in the text
 HW
 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.