the planning process

THE PLANNING PROCESS

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Strategic Planning SWOT Analysis Internal Factors

Strengths (S)

Weaknesses (W)

External Factors

Opportunities (O)

Threats (T)

SO Strategy (Maxi-Maxi):

WO Strategy (Mini-Maxi):

Use strengths to maximize opportunities

Minimize weaknesses using opportunities

ST Strategy (Maxi-Min):

WT Strategy (Mini-Mini):

Use strengths to minimize threats

Try to minimize weaknesses and threats through restructuring,, creating joint ventures, etc. 2

COMPANY STRATEGIES 

Strategy of unique product



Strategy of diversification

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PRODUCT STRATEGIES Porter Strategies Strategy Type

Definition

Examples

Differentiation

Distinguish products or services

Rolex (watches) Mercedes-Benz (automobiles) Nikon (cameras) Cross (writing instruments) Hewlett - Packard (calculators)

Overall cost leadership

Reduce manufacturing and other costs

Timex Hyundai Kodak BIC Texas Instruments

Focus

Concentrate on specific regional market, product market or group of buyers

Longines Fiat, Alfa Romeo Polaroid Waterman Pens Fisher Price

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PRODUCT STRATEGIES

Miles and Snow Strategies Strategy Type Prospector

Defender

Definition Innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking

Examples 3M

Protects current markets, maintains stable growth, serves current customers

BIC

Analyzer

Maintain current markets and current customer satisfaction with moderate emphasis on innovation

IBM

Reactor

No clear strategy, reacts to changes in the environment

International Harvester W.T. Grant 5

TACTICAL PLANNING

STEP 1 – Establish tactical goals: to be established at each departmental level, starting from the strategic goals, to realize strategic plans

STEP 2 – Developing tactical plans: establish future actions, timing and necessary resources

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OPERATIONAL PLANNING

STEP 1 – Establish operational goals: to be established at each operational level from the department, starting from the tactical goals, to realize tactical plans

STEP 2 – Developing operational plans: establish future actions, timing and necessary resources

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TYPES OF OPERATIONAL PLANS Plan Single-use plans

Description Developed to carry out a course of action not likely to be carried out in the future

- Program

Single-use plan for a large set of activities

- Project

Single-use plan of less scope and complexity than a program

Standing plans

Developed for activities that recur regularly over a period of time

- Policy

Standing plan specifying the organization’s general response to a designated problem or situation

- Standard operating procedure

Standing plan outlining steps to be followed in particular circumstances

- Rules and regulations

Standing plans describing exactly how specific activities are to be carried out 8

BUSINESS PLAN Executive Summary 1. Business description: a brief description of the product or service proposed to be realized and the perspectives for the next 5-10 years 2. Strategic planning: present the concrete activities to reach the long term objectives, taking into account the stage of your product

3. The market: a brief description of the targeted market segments and of the penetration channels and, also, present the utility product for the final consumer 4. Conducerea companiei: present the company management system and the responsibilities of each manager

5. Financial aspects: show estimated sales and profits for the next 5 years, the involved costs and how much represent your contribution

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Business plan – The content A. The Purpose of Company B. The Objectives C. The Market Analysis D. The production process E. The marketing strategies F. The financial planning G. The company organization and Management H. The ownership form of business I. The critical risks and problems J. Summary and Conclusions Appendices 10