Strategic Planning Process

What is the strategic planning process?

• It is the method that organizations use to develop plans to achieve
overall, long-term goals.
• It is a broader concept, which helps company in creating a roadmap
for achieving long-term goals of the company.
Steps involved in the Strategic Planning
Process
• Determine Strategic Position
• Prioritization of objectives
• Develop a plan
• Execute and manage the plan
• Review and revise the plan
Determine Strategic position
• SWOT analysis:
• S= Strength
• W= Weakness
• O= Opportunities
• T= Threats
Matrix
PEST Analysis
• P= Political
• E= Economic
• S=Socio-Cultural
• T= Technological
Matrix
SWOT-PEST Matrix
Prioritization of Objectives
• Rank the objectives in line with the company’s mission and visions.
• Following questions should be answered while prioritizations of objectives:
1) Which of these initiatives will have the greatest impact when it comes to
achieving our company mission/vision and improving our position in the market?
2) What types of impact are most important (e.g. customer acquisition vs revenue)?
3) How will the competition react?
4) Which initiatives are most urgent?
5) What will we need to do accomplish our goals?
6) How will we measure our progress and determine whether we achieved our
goals?
Develop a plan
• A plan to accomplish your objectives
• Do strategic mapping.
Execute and manage plan
• Communicate the plan
Review and Revise
• Utmost important
• Opportunities to mitigate the flaws.
Competitive Strategies
• A competitive strategy is a long-term marketing plan that companies
develop to defend their market position and gain a competitive
advantage.
• Why is a competitive strategy important?
ANSOFF MATRIX
ANSOFF MATRIX
• Market Penetration: Apple is selling its i-phone across the Apple store
and online platform
• New Product Development: Apple comes up with a new product
within 1 year. For example: I-phone 12 and I-phone13
• Market Development: Apple set up Apple store in a new country such
as Papua New Guinea.
• Diversification: New product+ new market= acquisition and merger.
For example: Tata acquire RangeRover from Ford.
• https://youtu.be/c5XjcTf6tLw
BCG MATRIX
BCG MATRIX
• Star: High market share + High market growth. Example: Kinley, Coco-
Cola
• Question Marks: Low market share + High market growth. Example:
Fanta, Coco-Cola
• Cash Cow: Low market growth + High market share: Coco-Cola
• Dog: Low market growth + Low market share: Diet Coke.
• https://youtu.be/gNR49lk5dS0
GE MATRIX
GE MATRIX
• Industry attractiveness (IA) and Business Unit Strength (BUS)
1) IA high+ BUS weak= Grow/Invest
2) IA high+ BUS medium= Grow/Invest
3) IA high+ BUS strong= hold/protect
4) IA medium + BUS weak= Grow/invest
5) IA medium + BUS medium= hold/protect
6) IA medium + BUS strong= Harvest/Divest
7) IA low + BUS weak= hold/protect
8) IA low + BUS medium= Harvest/Divest
9) IA low + BUS strong= Harvest/Divest
https://youtu.be/wwSQJXmQHjc