Mindset's ACCA P3 Course Presentation

2. Relational Diagram of Main Capabilities
Strategic Strategic Strategic
position choice action
Business
Information Quality Project Financial
Process
Technology Issues Management Analysis
Change
People

3. The common
Levels of
language of
strategic
strategic
planning
planning
The JSW model
of strategic Strategy lenses
management

5. Strategy is a pattern of activities that seeks to achieve the objectives of the
organization & adapt its scope, resources & operations to environmental changes in
the long term
Those alternative names considers the longer term (think of a time-horizon of
give some insight into about five years or beyond)
the nature of strategic
planning considers the whole organization
It: -
it gives direction to the whole organization, &
integrates its activities
Other characteristics of it considers all stakeholders
strategic planning are
that: - it looks at how to gain a sustainable competitive
advantage
it relates the organization, its resources &
competencies to its environment

6. Strategic planning can forces organizations to look ahead. ‘Forewarned is
have the following forearmed’
potential advantages: improves the organization’s fit with its environment
makes best use of scarce resources
influences the future (advertising, lobbying)
provides direction for the business
monitors progress (control)
ensures consistent goal & objectives
But, there are potential cost = time & money – ‘Paralysis by analysis’
disadvantages as well:
bureaucracy develops
plan = straightjacket & opportunities are ignored
because they are not in the plan
less relevance in a crisis
Contd.

7. Strategic planning is
there are long lead times
particularly important
when:
the business needs to be turned around
there is high capital expenditure
many stakeholders are affected

8. The strategic planning process
Internal
Appraisal
Establish External Generate
Set Mission
Objectives Appraisal St. Options
Stakeholder Strategic
Appraisal Choice
Plan &
Implement
Review &
Control

9. Rational approach is unrealistic
Strategies evolve over time
Evolving, incremental & continuous

10. Rational approach is unrealistic
Small scale extensions of past policy
Consultation, compromise & accommodation

11. No planning
Happy-go-lucky
More psychological

12. What business(es)?
Corporate
Based on capabilities, environment, stakeholders
Focused of SBUs
Business
What products / markets?
What approach to competitive advantage?
Support of functional areas to the corporate &
Functional business strategies

14. PESTEL environmental variables
Resource availability
Aspirations & expectations of stakeholders
Beliefs & assumptions forming the culture

15. How to compete? (Porter)
Option generation
Lowest cost/
Differentiation
Direction of growth (Ansoff)
Enter / withdraw / diversify
Method of growth
Acquisitions / mergers
Option evaluation Option selection

16. Organizing / structuring
Resource planning
Change management

17. Strategy as design
Strategy as experience
Strategy as ideas