5 Key Focus on Strategic Planning

1. Strategic - Planning
5 Key Focus:
• Define mission and objectives
• Assesses both the internal and external
situation
• Formulate strategy
• Implement strategy
• Evalution and Control

2. Strategic - Planning
• Mission and Objectives
– vision
– values
– purpose
– visionary goals
– opportunities
– measurable financial and strategic objectives
• sales targets and earnings growth
• business position, market share and reputation

3. Strategic - Planning
• Access internal and external situation
– Environmental Scan
• SWOT analysis (internal analysis)
• Porter’s 5 (industry analysis - entry barriers,
suppliers, customers, substitute products,
and industry rivalry)
• PEST analysis (external macro environment)

4. Strategic - Planning
• Strategy Formulation
– match strengths to opportunities from analysis
– address its weaknesses and external threats
– develop a competitive advantage over its rivals
• Cost
• Product differentiation
• Service differentiation

5. Strategic - Planning
• Strategy Implementation
– programs
– budgets
– resources
– procedures
– communication

6. Strategic - Planning
• Evaluation & Control
• define parameters to be measured
• define target values for parameters
• perform measurements
• compare measured results to the pre-
defined standard
• Make necessary changes