smp - strategic planning & vca

8/13/2019 SMP - Strategic Planning & VCA

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Strategic Planning


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Overview

The Strategic Process Vision and Mission Objectives

Analysis Implementation Case Study


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Strategic Management Process

Craft aStrategy

to AchieveObjectives

Set

Objectives

Develop aStrategic

Vision

andMission

Implementand

ExecuteStrategy

Improve/ChangeRevise asNeededRevise asNeeded Improve/Change Recycleas Needed

Task 1 Task 2 Task 3 Task 4 Task 5

Monitor,Evaluate,and Take

CorrectiveAction

ExternalEnvironment Assessment

InternalEnvironmen

t Analysis


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Vision and Mission

Vision Who we want to be and where we want to go?

Mission Customer needs Customer groups

Company activities, technologies, competencies HOW WE CREATE VALUE Stakeholders and responsibilities


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Example

Empower peoplethrough great software

anytime, anyplace, andon any device.


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Example

DELTA AIRLINES

. . . . . . we want Delta to be theWORL DWI DE AI RL I NE OF CH OI CE.


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Example-Continued

WORLDWIDE, because we are and intend toremain an innovative, aggressive, ethical, andsuccessful competitor that offers access to the world atthe highest standards of customer service. We will

continue to look for opportunities to extend our reachthrough new routes and creative global alliances

DELTA AIRLINES


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Example-Continued

AIRLINE, because we intend to stay in the

business we know best -- air transportation andrelated services. We wont stray from our roots.We believe in the long-term prospects for

profitable growth in the airline industry, and wewill continue to focus time, attention, andinvestment on enhancing our place in that

business environment

DELTA AIRLINES


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Types of Objectives Required

Outcomes focused onimproving financial

performance

Outcomes focused onimproving long-term, competitive business

position

Financial ObjectivesStrategic Objectives

$


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Financial Objectives

Grow earnings per share 15% annually

Boost annual return on investment (or EVA)from 15% to 20% within three years


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Strategic Objectives

Increase firms market share

Overtake key rivals on quality orcustomer service or product performance

Attain lower overall costs than rivals


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Economic

Global

Socio-cultural

Political-legal Technological

DemographicIndustry andCompetitor

External Analysis
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Industry Analysis

PotentialNew

Entrants

RivalryAmong

CompetingSellers

Suppliersof KeyInputs

Buyers

Substitute Products(of firms in

other industries)
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Internal Analysis

A distinctive competence is acompetitively significant activitythat a company performs betterthan i ts competi tors


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Examples

Sony Corporation

Expertise in flat-panel displaytechnology

Toyota, Honda, Nissan

Low-cost, high-qualitymanufacturing capability andshort design-to-market cycles


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Company Value Chain

DistributionAnd

Outbound

Logistics

Operations

PurchasedSupplies

andInboundLogistics

Sales andMarketing Service

ProfitMargin

Product R&D, Technology, Systems Development

Human Resources Management

General Administration

Pr im ary A ct iv i t ies and Cos ts

Suppor tAct iv i t iesand Cos ts


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Building aCapableOrganization

Allocating Resources

Establishing Strategy-Supportive Policies

Instituting BestPractices forContinuousImprovement

InstallingSupportSystems

Tying Rewards

to Achievementof Key Strategic Targets

ExercisingStrategicLeadership

Shaping CorporateCulture to Fit Strategy

StrategyImplementers

Action Agenda

Implementing and Executing


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Case Study

Equipment Modernization What are we or will we be doing?

What is available? Cost Material, training, upgrade (phased implementation or)

Competing technology System integration

What are the trade offs? Efficiency vs effectiveness Risk assessment


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Case Study

What are we or will we be doing? Customers (students)

Profile of needs, abilities, resources Employers

Profile of needs (numbers, skills, entry level)

Staff Training, hiring, retaining


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Case Study

What is available? Competing technology and programs

Costs (initial, maintenance, upgrade) System integration LINK TO MISSION i.e. students, employers


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Case Study

What are the trade-offs Efficiency versus effectiveness

Risk assessment Acquisition options Supplier support

Insurance

Growth Flexibility

smp - strategic planning & vca

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