Strategic Planning for Business

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PARAMJIT SHARMA

BusinessStrategic

Planning

8/8/2019 Strategic Planning for Business

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PARAMJIT SHARMA

BusinessStrategic

PlanningCOMPANY’S NEED TO

Review and Revise its

•IMPLEMENTATION ,•PROGRAMMES•STRATEGIES,

 EVEN•OBJECTIVES

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PARAMJIT SHARMA

BusinessStrategic

Planning

Business

Mission

External

EnvironmentAnalysis

Opportunity

Threat

Internal

Environment

Analysis

StrengthsWeaknesses

Goal

Formula

tion

Strategy

Formu

lation

Programe

Formu

lation

Feedback

&

Control

Impleme

tation

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PARAMJIT SHARMA

BusinessStrategic

Planning

Business

Mission

Each company needs to develop its specific

Mission within the broader company mission

Mission Does not attempt to win business from

Smaller organizations or win business by beinglowest in price

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PARAMJIT SHARMA

BusinessStrategic

Planning

SWOT ALAYSIS

Monitor Key

1 Macro Environment Forces

2 Micro Environment Forces

3 Setup Market Intelligence

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PARAMJIT SHARMA

BusinessStrategic

Planning

Opportunity

Analysis

SUCCESS PROBABILITYDEPENDS UPON

PROVIDING GREATEST

CUSTOMER VALUE

 SUSTAIN IT OVER

A TIME

Opportunity

1 Attractiveness

2 Success Probability

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BusinessStrategic

Planning

1

3

1 2

3 4

SUCCESS PROBABILITY

     A

     T     T     R     A

      C      T     I     V     E     N     E

      S       S 

HIGH

LOW

High Low

Opportunit

y

Matrix

1 Mgt pursue as both

  SP & A are High

4 SP & A ARE TOO

MINOR TO BE

PURSUED

2 & 3SHOULD BE

MONITORED &

PURSUED

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BusinessStrategic

Planning 1 2

3 4

Probability of Occurrence

      S     e     r     i    o 

u     s     n    e 

     s 

    s 

HIGH

LOW

High Low

Threat

Matrix

1 an ideal business –major opportunities, low major threat2 Speculative in opportunities & Threats

3 Major Business-major opportunities, low threats

4 Troubled Business-low in opportunities, high in threats

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BusinessStrategic

Planning

Internal

Environment

Strengths &

Weaknesses

Reviewing

Marketing

Financial

ManufacturingOrganizational--

Competencies

Major 

Strengths

Minor &

Major Weaknesses

8/8/2019 Strategic Planning for Business

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BusinessStrategic

Planning

GOAL FORMULATION

4 Criteria's•Must Be arranged hierarchically, from the most

to the least

•To be stated Quantitatively where ever possible

•Goals Should be realistic

•Must be consistent –not possible to maximize

sales & Profits Simultaneously

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PARAMJIT SHARMA

BusinessStrategic

Planning

Other Goals

•Short term profit Or long Term Growth

•Deep Penetration Of Existing Markets•vs Developing New Markets

•Profit Goals Versus Non Profit Goals

•High Growth versus Low Risk

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PARAMJIT SHARMA

BusinessStrategic

Planning

Strategic Formulation

•Goals indicate what business

unit wants to achieve

•Strategy is a game plan for getting there

•Every business must tailor a

strategy for achieving its goals

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PARAMJIT SHARMA

BusinessStrategic

Planning 3 Strategies

1 Marketing Strategy

2 Technology Strategy

3 Sourcing Strategy

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PARAMJIT SHARMA

BusinessStrategic

Planning

Strategic

Alliance4 Major Categories

Product Or Service Alliance

Promotional Alliance

Logistic Alliance

Pricing Collaborators

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PARAMJIT SHARMA

BusinessStrategic

Planning

Program FormulationIf technological Leadership is to be achieved

Must Strengthen

R & D

DepartmentGather 

TechnologicalIntelligence

Develop

Leading

Product Train

SalesForce

Communicate

Technical

Leadership

SONY,IBM,COKE,

XEROX,CASIO,KODAK

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PARAMJIT SHARMA

BusinessStrategic

Planning

Implementation- 7S

Structure

Shared

Vales

Skills

Systems

Staff 

Strategy

Styles

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PARAMJIT SHARMA

BusinessStrategic

Planning

Implementation- 7S

Strategy ,Structure, Systems are Hardware's

Style, Skills, Staff & Systems are Software’s

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PARAMJIT SHARMA

BusinessStrategic

Planning

Implementation- 7S

Style – co’s employees share common

way of behaving,

McDonald- employees give smile to customers

IBM -Professional in dealing with customers

 Skills -skills needed to carry strategies

Staffing Hired right type of people

Shared Values— Employees share same values

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PARAMJIT SHARMA

BusinessStrategic

Planning

FEED BACK & CONTROL

•Track results

•Monitor New Developments

•Some Environments are

Stable

Unpredictable

•Some Change Rapidly