Strategic Planning

Strategy – A course of actions.

Company's plan to match it’s

internal strengths & weaknesses with external
opportunities and threats while maintaining
competitive advantages.
Strategic Management Process

1 2 3 4
Define Internal/Ex. Formulate Translate
Current B. & Auditd New Business mission into
Mission Mission Goals

5 6 7
Formulate Implement Evluate
strategies to strategy Performance
achieve Goals

Strategic Planning Strategic Strategic

execuation Evluation
 Understanding the Concepts

 Vision: A statement of Business direction which

generates emotional feeling in organization's
members.
 Mission: Spells out who the company is.. What it
does.. and where it wants to move.
 SWOT Analysis: Chart used to compile & organize
company's Strength, weakness, opportunities &
threats.
 Strategic Controls: Process of assessing progress
of strategic goals & taking corrective actions.
Types of Strategies
Corporate Strategy

 Diversification – Expanding/adding
new product lines.
 Vertical integration – firms expands
by producing it’s own raw materials,
selling it’s products
 Consolidation – reducing company
size
 Geographic expansion – expanding
the boundaries
 Competitive Strategy

Meaning: How to built & strengthen the

business’s long term competitive position. This
done by defining competitive advantage of any
factor that allows a company to differentiate its
product or service from it’s competitors.

• Cost leadership
• Differentiation
• Focuses a market niche
 Functional strategy
 Functional strategy identifies
basic course of action that each
department will pursue in order
to attain it’s competitive goals.

3. HR
4. Marketing
5. Operation