PLANNING

AND
STRATEGIC
MANAGEMENT
I. What is Planning?
•Conscious, systematic process of
making decisions about goals
and activities that an individual,
group or organization will pursue
in the future.
 II. Basic Planning Steps
1. Situational Analysis • Past, Present & Future

2. Alternative Goals and Plans • Think in broad terms and be creative.

• Advantages, disadvantages, effects.

3. Goal and Plan Evaluation • Prioritize and eliminate.

4. Goal and Plan Selection • Most appropriate and feasible.

5. Implementation • Plans are useless if not implemented. “drawing”

• Assessment. Check success and what to improve.

6.Monitoring and Controlling
•Targets or ends •Actions or means
the manager the managers
wants to reach. intend to use to
•SMART achieve goals.
•Contingency
plans.

GOALS PLANS
 Specific
S
M Measurable

A Attainable

R Relevant
T Time-bound
III. Levels of Planning

Strategic Planning

Tactical Planning

Operational Planning
Strategic Planning – TOP LEVEL MGRS

•Making decisions about long term

goals and strategies
•Cover major portions and involve
senior managers
Strategic Goals
• Major targets or results that relate to the long-term
survival, value and growth of the organization.
EXAMPLES:
Growth and Market share
Profitability Boosting of ROI
Increasing productivity
Improving customer service
Strategy
•Pattern of actions and resource
allocations designed to achieve the
goals of the organizations.
•“What will you do?”
•**Lower price, extensive marketing,
promotions, revise packaging, etc.
Tactical Planning – MIDDLE LEVEL MGRS

Translation of plans and goals which

are broad into specific
**Marketing, human resource,
design, testing, installation, etc.
Operational Planning – FRONTLINE MGRS

•Specific procedures and processes

required at lower level of the
organization.
•Focuses on routine tasks
**Productions runs, delivery
schedules, HR requirements, etc.
 Time Horizons

0-1 Yr •Operational
2-3 Yrs •Tactical
3-7 Yrs • Strategical
 IV. Balanced Scorecard
EMPLOYEE (LEARNING INTERNAL BUSINESS
CUSTOMER FINANCIAL
& GROWTH) PROCESSES

 Competent • Innovation  Customer • Revenue

employees • Operational retention or growth
 Employee improvements loyalty • Large market
retention • Good  Product share
 Values and relationship leadership • High profits
culture with  Product quality and returns
employees,  Speedy
suppliers, etc. delivery
• Low cost  Competitive
• High quality pricing
V. Strategic Management
•Involves managers from all parts of the
organization in the formulation and
implementation of strategic goals.
•Strategic planning is an ongoing activity.
•Focused on long term and externally
oriented
 6 Strategic
Management
Process
STEP 1: Establishment of Mission,
Vision and Goals
– An organization’s basic purpose and
scope of operations
“What do you do?”
– The long term direction and strategic
intent of a company
“What do you want to become in the future?”
– A target or end the management
desires to reach
 Purple Delight is committed in providing
customer satisfaction by processing fresh
and delicious ube jam. It seeks to contribute
on the promotion of Manaoag‘s local
tourism, of Pangasinan and Ilocos Region as
a whole.
 Purple Delight envisions being the top
producer of the most sought and well-
known ube jam in the municipality of
Manaoag, eventually in the province of
Pangasinan, and in the whole Region of
Ilocos.
STEP 2: Analysis of External
Opportunities and Threats
– what is available
externally that can be beneficial to the
company. Something to exploit.
– something that may
adversely affect or harm the
company.
 – groups or individuals who
affect or are affected by the achievement
of the organization’s goals, mission and
strategies. Have interest.
Examples:
Buyers and Suppliers
Competitors and Employees
Owners and Shareholders
Government and Regulatory Agencies
STEP 3. Analysis of Internal Strengths
and Weaknesses
– what the company has. More
on competitive advantage and resources.
Positive attributes.
– what the company is
lacking. More on deficiency and negative
attributes.
1.It gives value to the customers.
(Good facilities)
2.Rare and not available to all.
(100% Passing Rate)
3.Difficult to imitate.
(Learning and Teaching style)
4.Well organized (processes).
(Examination process)
STEP 4: SWOT Analysis
INTERNAL EXTERNAL

STRENGTHS OPPORTUNITIES

WEAKNESSES THREATS
 SWOT Analysis
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Strategic • Product’s shelf • No direct • Substitute

Location-Near life competitors Products
the Tourist Spot • Start-up within the • Availability of
• Freshly Served business proximity Ube crops
Product against • Large Number • Established
• First Mover established of Tourists in competitors
Advantage businesses Manaoag
• Availability of • Possibility for
Technical Future Business
capability Expansions