2013 Cambridge Business & Economics Conference ISBN : 9780974211428 A PRACTICAL CORPORATE STRATEGIC PLAN Dr. Morgan AKA Doc Sherry, University of Phoenix Phil Paker, Capella University and Problem Solvers Acknowledgements: Doc Sherry would like to acknowledge her students, who work hard both on their jobs and in the classroom. Further, she would like to acknowledge Phil and his family. Phil, puts up with some of my crazy ideas, along with being a great friend. My family, as they have been accepting of my putting students and education before dinner, etc. for years. Her varied education and work experiences in management, logistics, information technology including high tech research & development along with emergency management; throughout the world, help her to keep an open and integrated perspective, along with understanding. Thus, the ability to share this information in a professional forum that hopefully benefits others. July 2-3, 2013 Cambridge, UK 1
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2013 Cambridge Business & Economics Conference ISBN : 9780974211428
A PRACTICAL CORPORATE STRATEGIC PLAN
Dr. Morgan AKA Doc Sherry, University of Phoenix
Phil Paker, Capella University and Problem Solvers
Acknowledgements:
Doc Sherry would like to acknowledge her students, who work hard both on their jobs
and in the classroom. Further, she would like to acknowledge Phil and his family. Phil, puts up
with some of my crazy ideas, along with being a great friend. My family, as they have been
accepting of my putting students and education before dinner, etc. for years.
Her varied education and work experiences in management, logistics, information
technology including high tech research & development along with emergency management;
throughout the world, help her to keep an open and integrated perspective, along with
understanding. Thus, the ability to share this information in a professional forum that hopefully
benefits others.
Phil Paker would like to acknowledge his wife Diane for her tolerance to the focus on this
writing while other priorities slip by. Further, he would like to acknowledge co-author Sherry
for her understanding of his direct and critical nature.
He has education and work experiences in management, as a consultant and an employee
in many industries and capacities. Included are planning, training and testing emergency
management and disaster recovery plans as well as participation in civilian and military
businesses for more than 30 years.
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ABSTRACT
Development of an integrated, dynamic corporate strategic plan is key to the success of
business enterprises. This plan serves as a guide to companies and lets others know the
direction(s) planned for the next and succeeding years. However, in spite of there importance,
many strategic plans are created and managed by individuals, who are not well versed in
strategic planning. Thus, the basic requirements of a Strategic Plan are generally not covered or
covered in a fashion that diminishes its value. Yet, each year, companies continue to update
their Strategic Plan.
Over the years, the content of strategic plans can change due to events as well as the need
to make changes to keep up with technology, or to tailor further the plan due to corporate and
economic changes or world events. Often there is a failure to integrate information due to
deadlines, or lack of knowledge as to how to integrate the needed information. Alternatively, the
plan was not thought important; thus, resulting in more of an opinion document. This paper will
provide the basics to create a sound Strategic Plan that can be of benefit to any company.
Additionally, insight into problems that may occur throughout the process, will be addressed.
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STRATEGIC PLANNING
INTRODUCTION
This paper will address Strategic Planning, bring an integrated approach to planning and
provide a foundation to understand what should be in a corporate strategic plan. Manufacturing
companies have different issues, than commercial retail companies, nonprofit companies, etc.
As a result, each type of company needs to address their issues and their strategy to mitigate or
eliminate the issues to meet their individual requirements.
Companies throughout the world create Strategic Plans. However, the format and the
information provided varies and some significantly. As a result, courses provided whether
professionally or through academics, vary as to what goes into a strategic plan, and how it should
be created and used. The authors will identify the importance, benefits and the required content
of a suitable Strategic Plan along with the need to monitor and track performance with measures
and metrics.
To ensure clarification, a business plan sets the objectives, the overall goals and purpose
for the business. A strategic plan addresses the strategy(s), how to approach the plan. Whereas a
Tactical Plan, provides the details of “how” to accomplish the Strategic plan. The Tactical Plan
details “what” needs done and "how" to take advantage of opportunities and address deficiencies.
Taxonomy of Planning
There are differences in types of plans that an entity uses. To put the Strategic Plan in
perspective, an Operational Plan normally covers up to 60 days, with revisions starting at 45
days and depending upon the project revisions can begin at 30 days. A Tactical Plan generally
covers 60 days to 2 years. This plan has ongoing changes and is formally revised every year. A
Strategic Plan should cover 3 to 5 years, reviewed every 3 to 6 months, revised generally every
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1-2 years, unless the review indicated a need for change. However, depending upon project
outcomes, new technology, etc. there are times when these plans need to be revised more
frequently. This could also be due to changes in the funding/economics and a competitor’s new
product launch that may affect the plan. In addition, there should be an integrated approach
continually maintained throughout all the various iterations.
Differences
Strategic Plans and their management vary based upon differences in companies and their
product(s) or purpose. Each company tailors their strategic plan to the needs, desires, product(s),
customers and ability of their company. This difference is also the result of their environment,
availability of emergency help, and the laws of their country as well as the countries where their
products are made; shipped to, etc. Books, including textbooks and other media, as well as the
companies themselves tend to define Strategic Management and Strategic Plans differently, their
outlines as to what should be in a strategic plan varies. A very basic outline of a business
Strategic Plan is in Appendix A – Strategic Plan Outline.
Available definitions of what are strategic plans and management. The following are
only a few of the many definitions.
Small Business Advancement Center (Saber, 2012) stated, “Strategic management consists of the
analysis, decisions, and actions an organization undertakes in order to create and sustain
competitive advantages.”
Another definition of a “strategic plan is “a bundle of decisions and acts” (Study Guide 2012).
Balanced Scorecard (2012) stated:
“The comprehensive collection of ongoing activities and processes that organizations use
to systematically coordinate and align resources and actions with mission, vision and
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strategy throughout an organization. Strategic management activities transform the static
plan into a system that provides strategic performance feedback to decision making and
enables the plan to evolve and grow as requirements and other circumstances change.
Note that Strategy defined by the Webster Dictionary (2012) states “a method worked out in
advance for achieving some objective where they strategize.” The word Strategize defined by
Webster Dictionary (2012) as: “to work out the details of (something) in advance; to devise a
strategy or course of action.”
Business Dictionary (2013) states a Strategic Plan is:
1. “A method or plan chosen to bring about a desired future, such as achievement of a
goal or solution to a problem
2. The art and science of planning and marshaling resources for their most efficient and
effective use. The term was derived from the Greek word for generalship or leading
an army.”
The Saber definition puts the emphasis on competitive advantage; while the Study Guide
makes it sound like a casserole. The Balanced Scorecard is a tool taught by many universities in
the U.S. However, it can be confusing to one who is learning, as The Balanced Scorecard only
gives “what” is in a strategic document and “what” the management activities do to make the
system evolve and grow.
These various definitions and elements within Strategic Plans along with their
management, leads one to wonder how the average person or student is able to understand, when
the industry produces definitions that are inconsistent and different enough to lead one to wonder
who knows what really is strategic management within a company, organization or country. As
a result, corporations could have different elements within what they believe is a good strategic
background, philosophy & qualifications of top management team (TMT) corporate culture and values organization structure (chart)
2. Value Chain Analysis and Benchmarking3. Core Competencies and Competitive Advantage
Summary of Environmental Analysis - SWOT (Strengths, Weaknesses, Opportunities, Threats)
Summary of Overall Strategic Analysis – Major Issues and Problems
PART II: FUNCTIONAL ANALYSIS
MARKETING
Includes, but not limited to the following areas:1. Marketing GOS – how do they support division and corporate GOS?2. Marketing processes, policies and procedures3. Customer Analysis4. Marketing Mix (4Ps for product companies; 7Ps for service companies)Summary of key issues and problems
FINANCE
Includes, but not limited to the following areas:1. Financial GOS - how do they support division and corporate GOS?2. Financial processes, policies and procedures3. Financial Data Analysis
(a) Sources and applications of funding(b) Capital equipment and supply list (c) Balance sheet (d) Breakeven analysis (e) Income projections (profit & loss statements)
- Three-year summary - Detail by month, first year - Detail by quarters, second and third years - Assumptions upon which projections were based
(f) Cash flow projections- Three-year summary - Detail by month, first year - Detail by quarters, second and third years - Assumptions upon which projections were based
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(g) Historical Financial Reports for Existing Businesses- Balance Sheets for past 3 years- Income Statements for past 3 years- Tax Returns
4. Company Valuation Analysis (if necessary)Summary of key issues and problems
HUMAN RESOURCE MANAGEMENT
Includes, but not limited to the following areas:1. HR GOS - how do they support division and corporate GOS?2. HR processes, policies and procedures3. Job Analysis4. Recruitment5. Training6. Management Development7. Performance Appraisal8. Reward Systems9. Compensation and Benefits
Summary of key issues and problems
DEPENDING ON THE CLIENT’S NEEDS, OTHER POSSIBLE AREAS FOR STUDY MAY INCLUDE:
I. ACCOUNTINGII. TECHNOLOGY / INTERNET
III. INFORMATION SYSTEMSIV. MANUFACTURING & PRODUCTIONV. R&D
Etc.
Summary of Functional Analysis – Major Issues and Problems
PART III: PROBLEMS, ALTERNATIVES & RECOMMENDATIONS
I. Overall Strategic Analysis – Summary of Major Issues & ProblemsFor each issue/problem:
a. Analyze Cause and Effectb. Alternative Solutions – Evaluate pros and cons; tradeoff analysisc. Recommendationd. Step-by-step Implementation Plan
II. Functional Analysis - Summary of Major Issues & ProblemsFor each issue/problem:
a. Analyze Cause and Effectb. Alternative Solutions – Evaluate pros and cons; tradeoff analysisc. Recommendation
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d. Step-by-step Implementation Plan (with time frame)
PART IV: SUPPORTING DOCUMENTS
Include, but not limited to the following: Existing business plan (if any) Copy of company/business registration Copy of company licenses Copy of lease or purchase agreement Copy of contracts and other legal documents Copy of patents (if any) Copy of resumes of all principals Copy of letters of intent from suppliers, etc. Policy manuals Job descriptions Credit reports Letters of reference Annual report Copy of Websites Etc.
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Appendix C – Charts
Chart 1: Oxford University (2009) Business & Economic Conference
Economic Downturn: Leaders Are Integral To Survival (p. 9).
Attributes of Leaders and Managers
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Chart 2: TSPM (2013).
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References
Advanced Performance Institute (API) (2013). Retrieved from