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2. Objectives
1. Definitions of both strategic planning and strategy
2. An understanding of the strategy management process
3. A knowledge of the impact of environmental analysis onstrategy
formulation
4. Insights into how to use critical question analysis and SWOT analysis
to formulate strategy
5. An understanding of how to use business portfolio analysis and
industry analysis to formulate strategy
6. Insights into what tactical planning is and how strategic and tactical
planning should be coordinated
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3. Strategic Planning
Fundamentals of Strategic Planning
Defining Strategic Planning
Defining Strategy
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4. Strategic Planning
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5. Strategic Planning
Strategy Management
Environmental Analysis
 The General Environment
 The Economic Component
 The Social Component
 The Political Component
 The Legal Component
 The Technology Component
 The Operating Environment
 The Customer Component
 The Competition Component
 The Labor Component
 The Supplier Component
 The International Component
 The Internal Environment
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6. Strategic Planning
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7. Strategic Planning
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8. Strategic Planning
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9. Strategic Planning
Strategy Management (continued)
Establishing Organizational Direction
 Determining Organizational Mission
 Developing a Mission Statement
 The Importance of Organizational Mission
 The Relationship Between Mission and Objectives
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10. Strategic Planning
Strategy Management (continued)
Strategy Formulation:Tools
 Critical Question Analysis
 What are the purposes and objectives of the organization?
 Where is the organization presently going?
 In what kind of environment does the organization now exist?
 What can be done to better achieve organizational objectives in the future?
 SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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11. Strategic Planning
Strategy Management (continued)
Strategy Formulation:Tools (continued)
 Business Portfolio Analysis
 The BCG Growth-Share Matrix.
Strategic business units (SBUs)
1. It is a single business or collection of related businesses
2. It has its own competitors
3. It has a manager who is accountable for its operation
4. It is an area that can be independently planned for within the organization
Categorize each SBU as:
 Stars
 Cash Cows
 Question Marks
 Dogs
 The GE Multifactor Portfolio Matrix.
 Porter’s Model for Industry Analysis
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12. Strategic Planning
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13. Strategic Planning
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14. Strategic Planning
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15. Strategic Planning
Strategy Management (continued)
Strategy Formulation:Types
 Differentiation
 Cost Leadership
 Focus
 Sample Organizational Strategies
 Growth
 Stability
 Retrenchment
 Divestiture
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16. Strategic Planning
Strategy Management (continued)
Strategy Implementation
1. Interacting skill
2. Allocating skill
3. Monitoring skill
4. Organizing skill
Strategic Control
Monitor and evaluate the whole strategy management process
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17. Tactical Planning
Comparing and Coordinating Strategic and Tactical Planning
Basic differences between strategic and tactical planning:
1. Strategic plans are usually developed by upper-level management
and tactical plans by lower-level management
2. Facts to base strategic plans are more difficult to gather
3. Strategic plans are generally less detailed than tactical plans
4. Strategic plans cover a relatively long period of time
whereas tactical plans cover a relatively short period of time
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18. Tactical Planning
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19. Planning and Levels of Management
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20. Questions
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