1. Business Strategy Game 3-Year Strategic Plan
…some thoughts and comments on preparing the 3-year strategic plan…

2. General Model of Strategic Management
Company Profile ( SWOT )
Mission
Objectives
Strategies
Tactics
Industry & Environmental Analysis ( SWOT )

3. 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

4. Minimum Investor Expectations: 16 Points for Each of Five Scores
Annual EPS growth
7% in years % in years 16-20
Annual stock price appreciation
15% ROE
Credit rating of B+
Image rating of 70

5. 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

6. 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