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BUS137 Chapter 4

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Deborah Oronzio
Deborah Oronzio

The document outlines the strategic planning process and key concepts in strategic management. It discusses the following: 1. The strategic planning process involves analyzing internal/external factors, generating goals/plans, evaluating alternatives, selecting goals/plans, implementing, and monitoring performance. 2. Strategic planning determines long-term goals and strategies while tactical and operational planning focus on medium-term and short-term goals. 3. A company develops strategy by analyzing strengths/weaknesses and opportunities/threats to gain a competitive advantage in its industry.

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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
4-
Learning Objectives ,[object Object],[object Object],[object Object]
Learning Objectives ,[object Object],[object Object],[object Object],[object Object]
The Planning Process (see Fig 4.1) Step 1: ANALYZE the situation ,[object Object],[object Object],[object Object]
The Planning Process (see Fig 4.1) Step 2: Generate ALTERNATIVE goals and plans ,[object Object],[object Object],[object Object]
“ SMART” Goals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Plans – “what will we do?” ,[object Object],[object Object],[object Object],[object Object]
The Planning Process (see Fig 4.1) Step 3: EVALUATE goals and plans ,[object Object],[object Object],[object Object]
The Planning Process (see Fig 4.1) Step 4: SELECT goals and plans ,[object Object],[object Object]
The Planning Process (see Fig 4.1) Step 5: IMPLEMENT goals and plans ,[object Object],[object Object],[object Object]
The Planning Process (see Fig 4.1) Step 6: Monitor and CONTROL performance ,[object Object],[object Object]
Levels of Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Planning – “The HOW” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Questions to ask in strategic planning ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Planning Process
Strategic Planning Process (see Fig. 4.3) Step 1: ESTABLISH a mission, vision, and goals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Microsoft’s Mission Statement ,[object Object],[object Object]
Vision Statements ,[object Object],[object Object],[object Object],[object Object]
4-
Strategic goals – “SMART” TARGETS ,[object Object]
Strategic Planning Process (see Fig. 4.3) Step 2: ANALYZE ETERNAL opportunities / threats ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stakeholders – “Vested Interest” ,[object Object],[object Object],[object Object],[object Object]
Strategic Planning Process (see Fig. 4.3) Step 3: ANALYZE INTERNAL strengths / weaknesses ,[object Object],[object Object],[object Object],[object Object],[object Object]
Resources and capabilities ,[object Object],[object Object],[object Object],[object Object],[object Object]
Resources - a competitive advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Core Competence – “What We Do Best” ,[object Object]
Benchmarking - “Best Practices” ,[object Object],[object Object]
Strategic Planning Process (see Fig. 4.3) Step 4: SWOT Analysis Strengths Skilled management Positive cash flow Well-known brands Weakness Lack of spare production capacity Absence of reliable suppliers Opportunities New technology Underserved market niche Threats Possibility of competitors entering underserved niche
Corporate Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Four Alternative Corporate Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object]
Alternatives to Corporate Strategy ,[object Object],[object Object],[object Object],[object Object]
BCG Matrix ?
BCG Matrix (see Fig. 4) BCG Categories of Businesses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BCG Matrix (see Fig. 4) BCG Categories of Businesses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Technology Leadership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Functional Strategy ,[object Object],[object Object],[object Object]
Strategic Planning Process (see Fig. 4.3) Step 5: IMPLEMENT the strategy ,[object Object],[object Object],[object Object],[object Object]
Strategic Planning Process (see Fig. 4.3) Step 6: CONTROL Your Progress ,[object Object],[object Object],[object Object],[object Object],[object Object]
Formal Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Barriers to Good Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Identifying the Problem ,[object Object],[object Object]
Diagnosing the Problem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Generate Alternative Solutions ,[object Object],[object Object],[object Object]
Evaluate Alternatives ,[object Object],[object Object],[object Object],[object Object]
Making the Choice ,[object Object],[object Object],[object Object]
Implement the Decision ,[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluate the Decision ,[object Object],[object Object],[object Object]
Managerial Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Psychological Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Time Pressures ,[object Object],[object Object],[object Object],[object Object]
Advantages of Group Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Group Decision Making ,[object Object],[object Object],[object Object],[object Object]
Effective Management of Group Decision Makers ,[object Object],[object Object],[object Object]
[object Object]
YOU should be able to ,[object Object],[object Object],[object Object]
YOU should be able to (cont’d) ,[object Object],[object Object],[object Object],[object Object]
Test Your Knowledge ,[object Object]
Test Your Knowledge ,[object Object]
Test Your Knowledge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Test Your Knowledge ,[object Object]
Triton Logging ,[object Object],[object Object],[object Object]

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BUS137 Chapter 4

  • 1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
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  • 29. Strategic Planning Process (see Fig. 4.3) Step 4: SWOT Analysis Strengths Skilled management Positive cash flow Well-known brands Weakness Lack of spare production capacity Absence of reliable suppliers Opportunities New technology Underserved market niche Threats Possibility of competitors entering underserved niche
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