Chap8


ObjectivesObjectivesObjectivesObjectives1.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


Strategic PlanningStrategic PlanningStrategic PlanningStrategic PlanningFundamentals of Strategic Planning

Defining Strategic Planning

Defining Strategy


Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning


Strategic PlanningStrategic PlanningStrategic PlanningStrategic PlanningStrategy Management

Environmental AnalysisThe 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


Strategic PlanningStrategic PlanningStrategic PlanningStrategic PlanningStrategy Management (continued)

Establishing Organizational DirectionDetermining Organizational MissionDeveloping a Mission StatementThe Importance of Organizational MissionThe Relationship Between Mission and Objectives



Strategy Formulation:ToolsCritical 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 AnalysisStrengthsWeaknessesOpportunitiesThreats



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 businesses2. It has its own competitors3. It has a manager who is accountable for its operation4. 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



Strategy Formulation:TypesDifferentiationCost LeadershipFocusSample Organizational StrategiesGrowthStabilityRetrenchmentDivestiture



Strategy Implementation1. Interacting skill2. Allocating skill3. Monitoring skill4. Organizing skill

Strategic ControlMonitor and evaluate the whole strategy management process


Tactical PlanningTactical PlanningTactical PlanningTactical PlanningComparing and Coordinating Strategic and Tactical Planning

Basic differences between strategic and tactical planning:

1. Strategic plans are usually developed by upper-level managementand 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 timewhereas tactical plans cover a relatively short period of time


Tactical PlanningTactical PlanningTactical PlanningTactical Planning


Planning and Levels of ManagementPlanning and Levels of ManagementPlanning and Levels of ManagementPlanning and Levels of Management


QuestionsQuestions

Chap8

Business

Transcript of Chap8