THE PLANNING PROCESS

Strategic Planning SWOT Analysis Internal Factors External Strengths (S) Weaknesses (W) Opportunities (O) SO Strategy (Maxi-Maxi): Use strengths to maximize opportunities WO Strategy (Mini-Maxi): Minimize weaknesses using opportunities Threats (T) ST Strategy (Maxi-Min): Use strengths to minimize threats WT Strategy (Mini-Mini): Try to minimize weaknesses and threats through restructuring,, creating joint ventures, etc.

COMPANY STRATEGIES Strategy of unique product Strategy of diversification

PRODUCT STRATEGIES Porter Strategies Strategy Type Definition Examples Differentiation Overall cost leadership Focus Distinguish products or services Reduce manufacturing and other costs Concentrate on specific regional market, product market or group of buyers Rolex (watches) Mercedes-Benz (automobiles) Nikon (cameras) Cross (writing instruments) Hewlett - Packard (calculators) Timex Hyundai Kodak BIC Texas Instruments Longines Fiat, Alfa Romeo Polaroid Waterman Pens Fisher Price

PRODUCT STRATEGIES Miles and Snow Strategies Strategy Type Definition Examples Prospector Defender Analyzer Reactor Innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking Protects current markets, maintains stable growth, serves current customers Maintain current markets and current customer satisfaction with moderate emphasis on innovation No clear strategy, reacts to changes in the environment 3M BIC IBM International Harvester W.T. Grant

TACTICAL PLANNING STEP 1 – Establish tactical goals: to be established at each departmental level, starting from the strategic goals, to realize strategic plans STEP 2 – Developing tactical plans: establish future actions, timing and necessary resources

OPERATIONAL PLANNING STEP 1 – Establish operational goals: to be established at each operational level from the department, starting from the tactical goals, to realize tactical plans STEP 2 – Developing operational plans: establish future actions, timing and necessary resources

TYPES OF OPERATIONAL PLANS Description Single-use plans - Program - Project Standing plans - Policy - Standard operating procedure - Rules and regulations Developed to carry out a course of action not likely to be carried out in the future Single-use plan for a large set of activities Single-use plan of less scope and complexity than a program Developed for activities that recur regularly over a period of time Standing plan specifying the organization’s general response to a designated problem or situation Standing plan outlining steps to be followed in particular circumstances Standing plans describing exactly how specific activities are to be carried out

BUSINESS PLAN Executive Summary 1. Business description: a brief description of the product or service proposed to be realized and the perspectives for the next 5-10 years 2. Strategic planning: present the concrete activities to reach the long term objectives, taking into account the stage of your product 3. The market: a brief description of the targeted market segments and of the penetration channels and, also, present the utility product for the final consumer 4. Conducerea companiei: present the company management system and the responsibilities of each manager 5. Financial aspects: show estimated sales and profits for the next 5 years, the involved costs and how much represent your contribution

Business plan – The content A. The Purpose of Company B. The Objectives C. The Market Analysis D. The production process E. The marketing strategies F. The financial planning G. The company organization and Management H. The ownership form of business I. The critical risks and problems J. Summary and Conclusions Appendices