1. Unit 5: Planning and Controlling
Strategic Planning

2. Agenda Learning goals Vocabulary What is strategic plan
Strategic planning process
Types of strategic plans
Managing tools in strategic planning
SWOT
PEST
Porter’s Five Forces
Level of strategic planning
Hewden case study about SWOT analysis-HW

3. Learning goals
Be able to explain the importance of the strategic planning process and describe the levels of strategic planning such as: corporate; business; functional, in an organization
Be able to describe the types of strategic plans such as: growth; retrenchment; e business, used by specific organizations.
Be able to analyse organizational strategic plans, using a variety of management tools such as: strengths, weaknesses, opportunities, threats analysis [SWOT analysis]; political, environmental, social, technological analysis; Porter’s five forces competitive model; PEST analysis.

4. Vocabulary E-business strategy Strategy Growth Strategy Strategy plan
Levels of planning: Corporate, business and functional
SWOT Analysis
PEST Analysis
Porters Five Force
Retrenchment strategy

5. Strategy
Strategy is a planned course of action undertaken to achieve the goals and objectives of an organization. 
A Strategic Plan is a coordinated and systematic direction for an organization. 
Essential to the success of a business

6. Strategic Planning Process
(1) Identify Mission and Objectives
(2) Analyse Internal and External Environment
(3) Formulate Strategy
(4) Implement Strategy
(5) Evaluate Results and Control

7. Types of Strategic Plans
Growth, Retrenchment, and E-business strategies
Growth Strategy
Expanding current operations
Concentration - In the same industry
Vertical Integration - Buying out suppliers/distributors
Diversification – In other industries

8. Types of Strategic Plans
Retrenchment Strategy
Used in crisis
Correct weaknesses by changing practices
Restructuring and downsizing
E-business Strategy
Involves Internet technology to buy/sell
Advertising, collecting information, and distributing information

9. Management Tools for Analysis
SWOT Analysis
Strength, Weakness, Opportunities, Threats
PEST Analysis
Political, Economic, Social, Technological factors
Porters Five Forces
Competitors, New entrants, Customers, Suppliers, Substitutes

10. Levels of Strategic Planning
Many of today’s large corporations are conglomerates composed of several businesses or several product lines.
Large corporations have three levels of strategy: corporate, business, and functional.

11. Levels of Strategic Planning
Did you know that Coca Cola doesn’t just make Coke but also all the companies below:

12. Levels of Strategic Planning
Strategy Level
Description
Main Question
corporate
Sets long-term direction for the organization as a whole, e.g. Coca Cola Company.
In what industries and markets should we compete?
business
Each business unit or product line is often called a strategic business unit (SBU), e.g., Fanta, Sprit, Dasani, SmartWater…
How are we going to compete for customers in this industry and market?
functional
Each business unit has the same basic functional areas or departments, typically these include: human resources, marketing, production, finance, and information technology.
How can we best utilize resources to implement our business strategy?