Unit 12:

Strategic Planning

Professional Credit value: 15 Guided learning hours: 45

Mohammad Haider haider@lsst.ac

Unit aim: This unit provides the learner with an p understanding of how to review current organizational management strategies g g g and the skills to develop a strategy plan in an organizational context. g

A Chinese proverb states that if you are planning for one year, grow rice. If you are planning for 20 years, grow trees. If you are planning f centuries, grow men. l i for t i

A strategy is...
the set of actions through which an organisation design,

develops resources and uses them to deliver services or products in a way which its users find valuable, while meeting the financial and other objectives and constraints imposed by key stakeholders.

Most successful strategies give an organisation: some property that is unique, or at least rare the th means f renewing it competitive advantage as the for i its titi d t th environment changes.

Comprehensive strategic management model

External Audit

Vision & Mission

Long-Term Objectives j

Generate, Evaluate, Select Strategies

Implement Strategies: Mgmt Issues

Implement Strategies: Marketing, Marketing Finance

Measure & Evaluate Performance

Internal Audit

POLITICAL
Macro Environment (PEST)

Organisation & its ECONOMIC Environment

ThreatofEntry

Suppliers S li
MicroEnvironment Mi E i t Industry

Competition p

Buyers B

Substitutes
Lifecycle Lif l

(Fiveforces)

Natureofcompetition/globalisation N f i i / l b li i

SOCIAL

TECHNOLOGICAL

Layers of the business environment

Organisational Configurations
Design of the organisation, roles responsibilities and p lines of reporting

Parenting, links in the value chain, ii.e. outsourcing and alliances e

See Johnson et al, 2005:397

Planning delivery and control of strategy (Balanced scorecard)

Elements of strategic management

Levels of strategy
Corporate strategy
Determine scope of the organisation y Satisfy shareholders Attempt to add value by linking units

Business strategy
How to compete in particular markets How to develop competitive advantage

Functional/operational strategies
- How to deliver the corporate and business level strategies effectively

Imposed strategy

Unrealised strategy

Mintzberg and Waters (1985)

Processes of Strategy Development

Intended strategies Deliberate management intent Emergent strategies E i Develop out of social and political processes in and around organizations

Most strategies (realized) are a combination of both p g ( ) processes as Mintzberg suggests.

A Strategic Planning Cycle

Source: From R. Grant, Strategic Planning in a Turbulent Environment, Strategic Management Journal, vol. 24, p. 499, 2003.

Strategic decisions
The long-term directions of an organization The scope of an organisation's activities Gaining advantage over competitors Addressing changes in the business environment Building on resources and competences(capability) Values and expectations of the stakeholders Therefore they are likely to: Be complex in nature Be made in situation of uncertainty Affect operational decisions Require an integrated approach q g pp Involve considerable change

So how do strategies develop?

Thank you

Any questions?