Chapter 2 Strategic Planning Process

References: Jeffrey S. Harrison, Cathy A. Enz (2004) Hospitality Strategic Management : Concepts and Cases. John Wiley and Sons. Michael Olsen, Joseph West, Eliza Cheng (2002) Strategic Management in the Hospitality Industry, Prentice Hall. Fred David (2008) Strategic Management : Cases and Concepts, Prentice Hall.
CO3 On successful completion of the course, student will be able to : Explain and apply decision making process for implementing strategies for organizational growth

Contents
Importance of Strategic Planning Key components of the Strategic Planning Strategic Planning Vs Strategic Thinking Phases of Strategic Planning Organizational strategies to conduct Strategic Planning Process

Importance of Strategic Planning

Planning is crucial to the development of the organization Analytical process aimed at carrying out strategies that have already been identified Function of managers but ideas from all

Address issues and changing forces thats affecting the organizations

Able to anticipate possible issues

Key components of the Strategic Planning

Executive summary actual strategic plans as a written document Competitive and Environmental Assessment (SWOT Analysis) Driving Forces critical forces that have impact on the outcome i.e pricing, new product development, perception Mission statement purpose for which an organization exist

Goals and objectives describe what needs to be achieved during the time frame
Strategies and tactics describes ways on how the goals to be achieved

Key components of the Strategic Planning (contd)

Program Plans outline a detailed plan Recommendations specific recommendations for short and long term. Related to objectives set out upfront Vision statement describe desired outcome of the overall strategic plan Slogans reflections of vision, mission and objectives. Slogan build identity and image. Leadership through Innovation Issues and problems to be highlighted Measurement and Results result must be quantifiable Resource Plan allocating resources to meet requirements of the plan

Strategic Planning Vs Strategic Thinking

Strategic Planning is the process Strategic Planning is part of strategic management Strategic Planning is an on going process Strategic Planning results in the creation of a plan Strategic Thinking is the way of thinking Strategic Thinking involves intuition and creativity

Phases of Strategic Planning Process

Phase 1 Competitive and Environmental Assessment Phase 2 Strategy Formulation Phase 3 Strategy Choice Phase 4 Strategy Implementation

Phase 5 Measurement
Phase 6 Reassessment/Adjustment

Organizational strategies to conduct Strategic Planning Process

Put the right people to do the thinking Get feedback from everyone from each function of the organization Environmental analysis Systematic approach to avoid missing the strategic thinking process