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Strategic Planning

is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.
Org Objectives Strategic Fit Resources

Changing Environment

The Role of Strategy

Corporate Mission & Objectives

Strategy: Corporate Business Functional

Operating Plans

Corporate Mission

Broad purposes of the organization General criteria for assessing the long-

term organizational effectiveness Driven by heritage & environment Mission statements are increasingly being developed at the SBU level as well

Examples of Corporate Mission

SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company

Corporate Objectives & Goals

An objective is a long-range purpose A goal is a measurable objective of the

Attainable at some specific future date through
planned actions E.g. 10% growth in the next two years

Not quantified and not limited to a time period E.g. increasing the return on shareholders equity

What is a Strategic Business Unit? (SBU)

A set of products or product lines

With clear independence from other
products or product lines for which a business or marketing strategy should be designed

Characteristics of a viable SBU

Unique business mission Definable set of competitors Integrative planning done independently Responsible for resource management in all
areas Large enough but not so large as to become bureaucratic

What is Competitive Advantage?

Competitive advantage is a companys

ability to perform in one or more ways that competitors cannot or will not match. If you dont have a competitive advantage, dont compete.

Situation Analysis Internal Analysiscompany; capability etc. External Analysiscustomers, market definition, industry structure SWOT Analysis
& Threats

Strengths, Weaknesses, Opportunities

Identify & prioritize major problems and
opportunities: selection of key issues

Based on the firms core competencies,

decide on future options