The Strategic Planning Process Lecture Notes

A collection of flashcards outlining key terms and definitions from the lecture on the strategic planning process.

Strategic Planning Process

A structured process involving the development of a mission, analysis of the environment, setting objectives, developing strategies, and implementing and controlling strategies.

Macro Environment

The external _ impacting a business, influencing its competitive position and requiring adaptation in corporate strategies.

PEST analysis

A framework used for understanding the macro-environmental factors affecting an organization, focusing on Political, Economic, Sociocultural, and Technological influences.

Threat of New Entrants

The potential for new competitors to enter a market, impacting market share, prices, and customer dynamics.

Threat of Substitutes

The likelihood that alternative products will attract customers, affecting sales and profitability.

Bargaining Power of Suppliers

The influence suppliers have on the price and availability of inputs needed for production.

Competitive Rivalry

The intensity of competition among existing firms within an industry, affecting pricing and profitability.

SWOT Matrix

A tool used for strategic planning that identifies strengths, weaknesses, opportunities, and threats related to a business.

BCG Matrix

A portfolio analysis tool that categorizes business units or products based on their market growth rate and relative market share.

Corporate Grand Strategy

A comprehensive plan that outlines the direction and scope of an organization, including growth, stability, turnaround, and combination strategies.

Objectives

Specific, measurable outcomes that an organization aims to achieve as part of its strategic plan.

Writing Effective Objectives

A method for creating objectives that includes defining an action verb, a measurable result, and a target date.

Sportswear Industry Overview

A sector showing steady growth projected to reach $280 billion by 2025, influenced by various contributing factors.

Political/Legal

the current and potential influences from _ pressures; how local, national, and global legislation affects the project

Economic

the local, national, and world _ impact

Sociological

The ways in which changes in society affect the project

Technological/Environmental

How new and emerging technology affects our project/organization

Porter’s Five Forces

Used to evaluate the root causes of profitability in an industry; threat of entry, threat of substitute, supplier power, buyer power, and competitive rivalry

Supplier Industry

• Raw Materials

• Technology

• Financial Resources

• Human Resources

• Inputs

End Product Industry

• Your organization

  • Competitor1

  • Competitor2

Customer Industry

• Individuals

• Wholesales

• Retail Sales

Industry Structure

Used to determine the attractiveness of a/an () , for insights on profitability, and making strategic decisions about entry to or exit from the _.

Mission

Why we exist

Vision

What we want to be

Goals

• What we must achieve to be successful

• General targets to be accomplished that are translated into actionable objective

• Examples

  • To improve profitability

  • To capture a bigger market share

  • To provide better customer service

  • To improve employee turmoil

  • Suitable

  • Acceptable

  • Understandable

  • Flexible

SWOT Analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Ansoff Matrix

An analytical tool to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in either new or existing markets.

Boston Matrix

Analyses all of the firm's products in terms of their market share and the growth of the market

Grand Strategy

• Growth (aggressively expand size)

• Stability (remain the same or grow slowly)

• Turnaround and Retrenchment (reverse a negative trend and cut back)

• Combination (mix of other three)

Growth Strategy

• Concentration - expand existing lines of business

• Integration - expand forward and/or backward within line(s) of business

• Diversification - add related related and/or unrelated product

Backward Integration

takes information entered into a given system and sends it automatically to all upstream systems and processes

Forward Integration

takes information entered into a given system and sends it automatically to all downstream systems and processes