1. Strategic Planning An Overview

2. What is it? ► A process which helps managers answer questions  What changes are happening in the environment  What products or services should we be offering  How can we offer them efficiently

3. Are their different kinds of strategy? ► Grand Strategy  A general plan of action  Growth ► Investing in expansion or acquiring new businesses  Stability ► Slow down growth, get organized, control what we are doing  Retrenchment ► Downsize ► Our current activities are no longer relevant to the environment ► Sell or close current businesses

4. Are their different kinds of strategy? ► Generic Strategy  How will we compete in the market place  Low cost  Differentiation  Wide  Narrow or niche

5. Are their different kinds of strategy? ► Global or International  Domestic Strategy  Export Strategy  Multi-country or Multidomestic  Global

6. What is the purpose of Strategic planning? ► Develop a sustainable competitive advantage  Competancies ► Core competance ► Distinctive competance  Key success factors  Sustainablitiy

7. How can we develop strategy ► Understand the environment  Porter’s five forces ► Competitors ► Suppliers ► Customers ► New entrants ► Substitutes  Opportunities and threats  Key success factors

8. How can we develop strategy ► Understand our company  Strengths and weaknesses  Distinctive Competencies  Our sustainable competitive advantages

9. Strategy Implementation Where the rubber meets the road

10. A dynamic process ► Involves changing the organization's behavior ► Requires vision ► Requires intuition ► Employee participation

11. Leadership ► Ability to influence organization's members to do things they wouldn’t ordinarily do. ► It includes  Motivation  Persuasion  Inclusion of everyone

12. Organizational Structure ► Involves relationships among members of the organization. ► Responsibilities ► Degree of Decentralization ► Find ways of organizing that don’t have lines and boxes. ► Communication technology  Globalization  First Level efficiencies  Social systems

13. Information and Control Systems ► Reward Systems that really reward performance ► Budgets ► Information systems  Everyone has his own set of information  The company places information where it is needed  Information is everywhere for anyone to use it ► Rules, policies and procedures

14. Human Resources ► Finding and recruiting the right people  Fit with the new culture ► Training ► Releasing people who don’t fit the new culture

15. Problems with Globalization ► All the issues we have discussed have to be dealt with, complicated by distance and: ► Communications ► Language ► Culture ► Currency ► Laws and customs