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Quick and Dirty Strategic Planning

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Presentation on theme: "Quick and Dirty Strategic Planning"— Presentation transcript:

1 Quick and Dirty Strategic Planning
1. Are there major structural threats or opportunities? Are there changes on the horizion? 2. Are there actions we can take to (a) position the organization in a favorable niche, or (b) influence industry structure? 3. Catalog Activities 4. What are relative costs of the activities? What drives your costs? 5. Use activities to analyze willingness-to-pay (WTP) 6. Consider alternatives to reduce costs or increase WTP 7. What steps are necessary to implement the actions listed in #6? (What do different functions or units need to do?)

2 1. Are there major structural threats or opportunities
1. Are there major structural threats or opportunities? Are there changes on the horizion? Bargaining power of buyers Bargaining power of suppliers Competitive rivalry Threat of substitutes Threat of entry How will regulatory, technological, and societal changes influence structure?

3 2. Are there actions we can take to (a) position the organization in a favorable niche, or (b) influence industry structure?

4 3. Catalog Activities Support Activities Primary Activities M a r g i
Firm Infrastructure Human Resource Management Technology Development Procurement Support Activities M a r g i n Inbound Logistics Operations Outbound Logistics Marketing & Sales After-Sales Service Primary Activities

5 4. What are relative costs of the activities? What drives your costs?
Scale Learning Pattern of capacity utilization Linkages Interrelationships Integration Timing Policies Location Institutional factors Source: Michael E. Porter, Competitive Advantage (New York: Free Press, 1985)

6 5. Use activities to analyze willingness-to-pay (WTP)

7 6. Consider alternatives to reduce costs or increase WTP

8 7. What steps are necessary to implement the actions listed in #6
7. What steps are necessary to implement the actions listed in #6? (What do different functions or units need to do?)


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