planning

Report
LESSON OBJECTIVE
 Be
able to undertake a range of analysis
techniques
 Understand the global factors that impact on
strategy
Undertake a range of planning techniques
CORPORATE APPRAISAL - SWOT ANALYSIS
What opportunities exist in the business
environment?
 What is their profit making potential?
 What is the organisation’s ability to exploit?
 What threats might arise?
 How will competitors be affected?
 How will the company be affected?

SWOT ACTIVITY
Referring to the Hall Faull Downes Ltd case study
and using your knowledge of SWOT give your
appraisal of the company’s future and suggest
what it is probably doing wrong.
25 mins
GAP ANALYSIS
PORTER’S GENERIC COMPETITIVE STRATEGIES
To give organisations COMPETITIVE ADVANTAGE through
3 strategies:
Cost leadership – being the lowest cost producer
Differentiation – perceived uniqueness
Focus – restriction of activities to niche or
segmentation
EXAMPLES OF GENERIC STRATEGY ORGANISATIONS
Cost Leadership
 Tesco Dell Computers Easyjet Nissan
Differentiation
 McDonalds Mercedes Apple Intel Starbucks Nike
Focus – the focus of your strategy choice (niche)
 Ferrari
Apple computing (differentiation focus)
 Wal Mart
Ikea (cost leadership focus)
SCENARIO PLANNING
A PLANNING technique that builds various
plausible views of possible futures of a business
It is NOT forecasting the future
USED IN 3 MAIN CONTEXTS
Directional strategy – given the future scenarios
what’s our best course of action?
Contingency Planning – what risks and
opportunities are we not considering at present?
Learning & team building – what should be our
company’s shared vision?
PRODUCT MARKET STRATEGY – ANSOFF
DIRECTION OF GROWTH
A growth vector matrix with two dimensions  Products
 Markets
And four Growth Strategies –
 Market Penetration
 Market Development
 Product Development
 Diversification
THE PLANNING FRAMEWORK
What is Planning?
Planning is the process of deciding what should
be done, how and when it should be done and
who should do it
THE PLANNING GAP
THE PLANNING HIERARCHY
THE PLANNING CYCLE
STRATEGIC PLANNING – GLOSSARY
JOHNSON & SCHOLES (2002)
Term
Definition
Mission
Overriding purpose in line with values or expectations of
stakeholders
Strategic Intent ( Vision)
Desired future state – the aspiration of the organisation
Goal
General statement of aim or purpose
Core competencies
That which provides distinctive competitive advantage
Strategies
Long term direction
Strategic architecture
Combination of resources, processes and competencies
to put strategy into effect
Control
Monitoring of action steps to assess effectiveness &
modify as necessary
STRATEGIC PLANNING PROCESS
Strategic analysis
Thorough assessment of the organisation

Strategic choice
Strategic options that exist are considered

Strategic implementation
Selected stagey is developed and put into action

STRATEGIC PLANNING PROCESS
STRATEGIC ANALYSIS
STRATEGIC CHOICE
STRATEGIC IMPLEMENTATION
PLANNING TECHNIQUES
BCG Growth Share Matrix – Boston Cow
 SPACE – Strategic Position and Action
Evaluation
 Directional Policy Matrices
 PIMS – Profit Impact of Market Share


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