Business Strategy Game 3-Year Strategic Plan …some thoughts and comments on preparing the 3-year strategic plan…
General Model of Strategic Management Company Profile ( SWOT ) Mission Objectives Strategies Tactics Industry & Environmental Analysis ( SWOT )
Earning Points for Strategic Plan Set Target 14 below investor expectations 16 equal to investor expectations 18 one step above investor expectations 19 two steps above investor expectations 20 three steps above investor expectations
Minimum Investor Expectations: 16 Points for Each of Five Scores Annual EPS growth 7% in years 11-15 5% in years 16-20 Annual stock price appreciation 15% ROE Credit rating of B+ Image rating of 70
Numerical Example of Points Earned: Return on Equity (ROE) Outcome Achieved Submitted in 3-year plan Made 30% Made 24% Made 18% 10% 14 15% 16 20% 18 16.2 25% 19 18.2 13.7 30% 20 12
Suggestions for Presentation of 3-year Strategic Plan Present / discuss strategic vision Present / discuss expected outcomes for the five key performance objectives Think graphics, trends Focus on what you plan to accomplish, not how you plan to do it