Business

Strategic
Planning

PARAMJIT SHARMA
 Business
Strategic
Planning
COMPANY’S NEED TO

Review and Revise its

•IMPLEMENTATION ,
•PROGRAMMES
•STRATEGIES,
EVEN
•OBJECTIVES

PARAMJIT SHARMA
 External
Business Environment
Strategic Analysis
Planning Opportunity
Threat
Goal Strategy Programe Impleme Feedback
Formula Formu Formu
tation
&
tion lation lation Control
Business
Mission
Internal
Environment
Analysis
Strengths
Weaknesses

PARAMJIT SHARMA
 Business
Business
Mission
Strategic
Planning

Each company needs to develop its specific

Mission within the broader company mission

Mission Does not attempt to win business from

Smaller organizations or win business by being
lowest in price

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 SWOT ALAYSIS

Business
Strategic
Planning

Monitor Key

1 Macro Environment Forces

2 Micro Environment Forces

3 Setup Market Intelligence

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 Opportunity
Analysis
Business
Strategic
Planning

SUCCESS PROBABILITY
Opportunity DEPENDS UPON

PROVIDING GREATEST
1 Attractiveness CUSTOMER VALUE

2 Success Probability SUSTAIN IT OVER

A TIME

PARAMJIT SHARMA
 Opportunity
Matrix
SUCCESS PROBABILITY
Business
Strategic
Planning High Low
ATTRACTIVENESS

1 Mgt pursue as both

SP & A are High
HIGH 1 1 2
4 SP & A ARE TOO
MINOR TO BE
PURSUED

2&3
LOW 3 3 4 SHOULD BE
MONITORED &
PURSUED

PARAMJIT SHARMA
 Threat
Probability of Occurrence
Matrix
High Low
Business
Strategic
Planning
1 2

Seriousnes
HIGH

LOW 3 4

s
1 an ideal business –major opportunities, low major threat
2 Speculative in opportunities & Threats
3 Major Business-major opportunities, low threats
4 Troubled Business-low in opportunities, high in threats

PARAMJIT SHARMA
 Internal
Environment
Strengths &
Business Weaknesses
Strategic
Planning

Reviewing
Marketing
Financial Major Minor &
Major
Manufacturing Strengths Weaknesses
Organizational--
Competencies

PARAMJIT SHARMA
 GOAL FORMULATION
Business
4 Criteria's
Strategic
Planning
•Must Be arranged hierarchically, from the most
to the least

•To be stated Quantitatively where ever possible

•Goals Should be realistic

•Must be consistent –not possible to maximize

sales & Profits Simultaneously

PARAMJIT SHARMA
 Other Goals
Business
Strategic
Planning
•Short term profit Or long Term Growth

•Deep Penetration Of Existing Markets

•vs Developing New Markets

•Profit Goals Versus Non Profit Goals

•High Growth versus Low Risk

PARAMJIT SHARMA
 Strategic Formulation

Business
Strategic
Planning
•Goals indicate what business
unit wants to achieve

•Strategy is a game plan for getting there

•Every business must tailor a

strategy for achieving its goals

PARAMJIT SHARMA
 Business
Strategic
Planning 3 Strategies

1 Marketing Strategy

2 Technology Strategy

3 Sourcing Strategy
PARAMJIT SHARMA
 Michael Porter- 3 generic Types
Business
Strategic
Planning
1 Overall Cost Leadership- Lowest Price

2 Differentiation-
Service leader,
Quality Leader
Style Leader
Technology Leader

3 Focus -Focus on Narrow market Segment

,

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 Strategic
Alliance
Business 4 Major Categories
Strategic
Planning

Product Or Service Alliance

Promotional Alliance

Logistic Alliance

Pricing Collaborators

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 Program Formulation
If technological Leadership is to be achieved

Business
Strategic Must Strengthen
Planning

Develop Communicate
R&D
Leading Technical
Department
Product Train Leadership
Gather
Technological Sales
Intelligence Force

SONY,IBM,COKE,
PARAMJIT SHARMA
XEROX,CASIO,KODAK
 Implementation- 7S
Structure
Business
Strategic
Planning

Strategy Systems
Shared
Vales

Skills Styles

Staff

PARAMJIT SHARMA
 Implementation- 7S

Business
Strategic
Planning
Strategy ,Structure, Systems are Hardware's

Style, Skills, Staff & Systems are Software’s

PARAMJIT SHARMA
 Implementation- 7S

Business
Strategic
Planning Style – co’s employees share common
way of behaving,
McDonald- employees give smile to customers
IBM -Professional in dealing with customers

Skills -skills needed to carry strategies

Staffing Hired right type of people

Shared Values— Employees share same values

PARAMJIT SHARMA
 FEED BACK & CONTROL

Business
Strategic
Planning •Track results

•Monitor New Developments

•Some Environments are

Stable
Unpredictable

•Some Change Rapidly

PARAMJIT SHARMA