PLANNING AND STRATEGIC

MANAGEMENT
Chapter : 4
 Learning Objectives
O What is strategic management? Strategic
Management process.

O Corporate/business/functional strategy

O What is BCG matrix, its importance (HW)

 \

Strategic(Top.M ) Tactical(Mid.M) Operational(L.M)

O Long term (3> <1

1-3 years
O Survival, growth,
O Specific plans of Specific
share value, procedures/processe
repute, brand functional areas s /day to day
image, market (departments) of activities of specific
share, profit. organization. departments

O Skills & resources O Skills and

Skills/ resources in
in response to resources in response to tactical
external response to plans
environment strategic plans
 Strategic management

Strategic management = Strategic planning +implementation

Involves the formulation and implementation of major goals and strategies formulated by
the top management of the company and focuses on the best ways to do business in response
to the assessment of resources and internal and external environment of the business.

O The aim is to get the competitive advantage

 Strategic Management Process

Strategic management process involves setting

objectives, analyzing the competitive/ macro
environment, analyzing the internal resources,making
strategies, and ensuring that management effectively
implements the strategies across the organization.
 Strategic Management

https://youtu.be/icqu2Kl1Imc
 Vision vs mission statement
Vision Statement
O It defines purpose and
values of a business.
O It outlines where a business
wants to be
O A source of inspiration for
employees and explains why
they are working in an
organization.
Mission Statement
O How the business aims to
achieve its vision.
O What product/service a
business offers and what makes
it different
O Prime audience is employees,
stakeholders.
 .
O 
O Vision
O “We believe that we are on the face of the earth to make
great products and that’s not changing.

O Mission

O “ to bringing the best user experience to its customers

through its innovative hardware, software, and services. 
 Shaukat Khanam Hospital

O Vision: Cancer free Pakistan

O Mission: “To act as a model institution to alleviate the suffering
of patients with cancer through the application of modern
methods irrespective of their ability to pay,
the education of health care professionals and the public and
perform research into the causes and treatment of cancer.”
4
CP-2-Mobilink Jazz SWOT 4 marks
Describe I for each of the following

Strengths Weaknesses

Opportunities Threats
 Strategic Management

https://youtu.be/icqu2Kl1Imc
• Corporate strategy is a plan to decide in which industry a business
will operate, which products/ services will be provided.
.

• Business Strategy is a set of competitive moves and actions that a

business uses to attract customers, compete successfully,
strengthening performance, and achieve corporate goals.
• Low cost vs differentiation vs niche

• Functional Strategy the day to day strategy adopted by each

functional area ( marketing, production, customer service , human
resource), which is formulated to assist in the execution of
corporate and business level strategies. Functional Level Strategy is
concerned with operational level decision making
 Concentration Strategy
•  The strategy involves a company focusing on the
development of a single product or at least a small
group of close products in a single industry.

• Starbucks, KFC
• Cine Star cinemas
• Beaconhouse system
• Apple
 Concentric diversification

• When a company develops or acquires new products or services

which are closely related to its existing products.

• PepsiCo adopted a concentric diversification strategy when it

broadened its product line from soft drinks to fast food
franchises and snack foods.
• Jazz Pakistan ???

• Wateen Pakistan???

• Benefits of Conc. Diversification?

 Conglomerate Diversification
• Is a corporate strategy of expansion into unrelated
products/industries.

• Gourmet Pakistan,

• Nishat textiles/ hotels/cement/bank/ motor vehicle

• Sony

• Benefits of Congl. Diversification?

 Vertical Integration
• Vertical integration is a strategy whereby a company becomes its own
supplier or distributor.

• Shezan start owning their own fruit farms.

• McDonalds starts maintaining their own chicken farms.

• Bata own all their stores where they sell.

 CP-Q-2 3 min

• Describe 2 advantages of vertical integration 2 marks

• The time ends at 4.56

• No credit for answers after 4.56

• Start submitting and one answer

 BCG Matrix
https://www.bing.com/videos/search?q=what+is+bcg+matrix&docid=6080
22117934696905&mid=BA673E696CF24400549FBA673E696CF24400549F&v
iew=detail&FORM=VIRE

BCG Matrix - Overview, Four Quadrants and Diagram (corporatefinanceinstitute.com)

 . 6-Control
5-Strategy Implementation

• Key Performance
• Leadership (communicate, Indices (KPI) HW
facilitate)

• Human resources • Budget controls,

(motivation)
•
• Culture and reward systems • financial targets
Resources
Strategic management Process

6-Control
Key Performance Indices (KPI)
Budget controls,
financial targets