Strategic Planning
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Transcript of Strategic Planning
Strategic Planning
Workshop 2•Environmental Scan•Stakeholder Engagement•SWOT Analysis
Strategic Planning involves Identifying where the organisation is currently;
Assessing how the external environment is likely to affect the organisation;
Deciding what alternative actions are possible to reach the vision and mission;
Choosing an action or a number of actions; and
Implementing the choices,
making educated guesses about the future based on as much information as can be gathered .
Looking across the whole organisation
Strategic Planningfocused on time frames of three to five years into the future
Dependent on the rate of change affecting the organisation.
Is an externally driven process
The Steps in Strategic Planning1. Identify the organisation's mission, objectives and
strategies.2. Analyse the environment in which the organisation is
operating.3. Identify opportunities and threats to the organisation,4. Analyse the organisation's resources.5. Identify the strengths and weaknesses of the
organisation,6. Review the organisation's mission and objectives.7. Formulate strategies to achieve desired goals.8. Implement strategies,9. Evaluate the results,
Stakeholders
A stakeholder is any person, group, or entity that can place a claim on the organization's attention, resources, or output, or is affected by the output. Evaluate the involvement of of stakeholdersExternal / internal
Criteria used by them to assess organisational performance?How do they influence the organisation?What does the organisation need from them?How important are they?
Key ?
Internal stakeholders
Other Organisations
Customers
Suppliers
Government
UnionsCommunity
Environment
Financiers
Competitors
StakeholderSupport Ethical issues Possible Expectations
Managementworking conditions, safety, privacy, conflict of interest, codes of conduct etc
short term profits, prestige, growth, personal power
Employees honesty, secrecy, confidentiality, compliance, appeal mechanisms
communication, consultation, equity and fairness of treatment and renumeration
Unions employee rights, good faith, open communications
employment, conditions of employment, consultation on change
Shareholders fair disclosure, insider trading, profit vs non-profit goals
dividends, consistent and reliable growth, no surprises
Local communities
community economic and social obligations
employment, expertise, social and economic benefits
Financiers fair disclosure, insider trading, profit vs non-profit goals
profit and growth, consistent repayments
Society corporate philosophy and behaviour, ecology and the environment employment
Customerssafety, deceptive advertising, keeping corporate promises, fair disclosure
favourable buying terms, incentives, relationship, information
Governmentregulations and compliances, ethical vs legal position, lobbying, role of business in politics
jobs and tax revenue
Competitors fair competition, industrial espionage, collusion, dumping, predatory pricing
Environmental ScanMonitoring the environment is important because:
Responsiveness to environmental issues may be a source of competitive strength
Vulnerability to environmental influencesMost companies don’t have the resources to alter
their environment – they must respond to environmental changes
To be successful organisations need to understand their environment
Environmental analysis
•Political •Economic•Social•Technological
Political Factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
tax policyemployment lawsenvironmental regulationstrade restrictions and tariffspolitical stability
Economic factorsEconomic factors affect the purchasing power of
potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:economic growthinterest ratesexchange ratesinflation rate
Social FactorsSocial factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:
health consciousnesspopulation growth rateage distributioncareer attitudesemphasis on safety
Technological factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
R&D activityautomationtechnology incentivesrate of technological change
Business
Industry Environment
General Environment
Industry CharacteristicsSuppliers, Competitors,
Customers
Technological, Political/ legal. Social, Demographic, Economic, Global
Environmental Forces
BROAD BASED ENVIRONMENTAL
FORCES
Economic forces
Governmental forces
Technological forces Global forces
Social forces
Demographic forces
SWOT AnalysisSWOT analysis can give you a solid basis for developing both strategies and plans. It's a systematic way to examine : the organisation's internal strengths (S) and
weaknesses (W), and
Threats (T) and opportunities (O) in its external environment.
POSITIVE/ HELPFULto achieving the goal
NEGATIVE/ HARMFULto achieving the goal
INTERNAL
Originfacts/ factors of the organization
Strengths
Things that are good now, maintain them, build on them
and use as leverage
Weaknesses
Things that are bad now, remedy, change or stop them.
EXTERNAL
Originfacts/ factors of the environment
in which the organization
operates
Opportunities
Things that are good for the future, prioritize them, capture
them, build on them and optimize
Threats
Things that are bad for the future, put in plans to manage
them or counter them
Information Sources - Research
Working with employees to draw on their expertise – (e.g.
brainstorming, focus groups)
Obtaining data the organisation may already have - (e.g..
Competitor files)
Collection of original information on markets e.g customer surveys
Using Industry publications e.g census information, trade journals,
internet
Primary (original sources) Secondary (existing documentation)
Internal
External
Data Sources - InternalPrimary sources:
Focus groups Brainstorming sessions & meetings
Secondary sources:Financial Reports Statistical DatabasesAnnual ReportsPrevious Investment & Business plans
Data sources - ExternalTechnology: Industry & Trade Associations, Scientific
Reports & Journals, SuppliersLegal : Industry trade Associations, Social: ABS, Statistical informationSurvey of Consumers: ABS, Industry Surveys, CustomersDemographic: Economic bulletins, ABS, Business
Chamber, Industry SurveysEconomic: Economic Indicators, ABS, Bank Economic
Reports, Industry AssociationsIndustry Specific: Industry Surveys, ABS, Industry
Associations, Industry Journals