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Strategic Planning: HDCS 4393/4394 Internship Dr. Shirley Ezell
Strategic Planning: HDCS 4393/4394 Internship Dr. Shirley Ezell
Strategic Planning: HDCS 4393/4394 Internship Dr. Shirley Ezell
HDCS 4393/4394
Internship
Dr. Shirley Ezell
Introduction
• Strategy is the larger vision in a
company that guides the plans for
employees and managers.
• Strategy has its foundation in strategic
thinking. It is the determination of the
long-term goals and objectives of an
organization and the courses of action
and resources necessary for
implementing these goals.
Strategic thinking produces strategies.
Introduction (Cont.)
• In modern organizations executives
included every level of the organization
in developing and implementing the
overall strategy.
• Strategic planning must anticipate
unexpected events, randomness, and
chaos to provide a good strategy. Good
strategic planning allows a company to
develop a sustainable competitive
advantage.
• The earlier history of planning found
organizations using current-year sales, and
environmental trends for 5 to 10 years and basing
their plant, product and investment decisions on
this data within a stable environment.
• The environment changed into one of uncertainty,
intensifying foreign competition, technological
obsolescence, and changing markets and
populations; and, managers turned to strategic
planning.
• Strategic planning is a process that reviews market
conditions, customer needs, competitive strengths
and weaknesses, sociopolitical, legal, and economic
conditions, technological developments, and the
availability of resources to assist the organization in
its planning for opportunities or threats.
• The Strategic Plan includes taking this environmental
information and deciding on a mission, objectives,
strategies and a strategic architecture.
See Figure 6-2 in the readings for a visual diagram of
the process.
Lets look at one strategic plan in
action. Review the
Matsushita process where
department managers provide 3 plans every 6
months:
A five-year plan with technological and
environmental changes, a two-year plan taking
strategies into new products, and a six-month
operating plan that shows monthly projections for
production, sales, profits, inventories, quality
control, and personal requirements.
Organizations need to
reflect to be successful the
critical questions are:
1. What is our business?
2. What should it be?
And these must be answered by top management.
What are the Important
Strategic Thinking Frameworks?