LECTURE 3 - STRATEGIC PLANNING PROCESS


THE EXTERNAL ENVIRONMENTAL ANALYSIS
THE GENERAL ENVIRONMENT FACTORS :

 P  E  S  T  E  L 

  • P - Politic factors
  • E - Economic factors
  • S - Social-cultural factors
  • T - Technological factors
  • E - Environment factors
  • L - Legal factors

THE INDUSTRY ENVIRONMENT FACTORS :

MICHAEL PORTER'S FIVE FORCES MODEL

1.     Threat of New Entrants
2.     Bargaining Power of Suppliers
3.     Bargaining Power of Buyers
4.     Substitute Products
5.     Rivalry Among Competitors


THE INTERNAL ENVIRONMENTAL ANALYSIS


MANAGEMENT :
Management is a process of coordinating activities, which comprises of five functions :
  • planning
  • organizing
  • motivating
  • staffing
  • controlling 


MARKETING :
Marketing is the exchange of products or services from the producer to the user, starting from determining what users want and need or what services could be provided to create satisfaction.
  1. customer analysis
  2. selling product/services
  3. product and services planning
  4. pricing
  5. distribution
  6. marketing research
  7. opportunity analysis

 FINANCE :
A analysis on financial information is made to identify a company's strengths and weaknesses from the financial perspective. Questions concerning the financial position of the company, its stability and competitiveness could only be answered after a through and detailed financial analysis.
OPERATION/PRODUCTION :
The definition of operation includes the process of transforming input/resources like steel and oil into products/outputs that are of higher value to the user.




Comments

Post a Comment

Popular posts from this blog

LECTURE 5 - THE CORPORATE LEVEL STRATEGY

Image
THERE ARE 3 LEVEL OF STRATEGIES: Corporate level strategies Business level strategies Functional level strategies. CORPORATE LEVEL STRATEGIES: 😄 For the benefit of the whole organization 😄 Top management level 😄 For the welfare of the whole corporation in terms of its future 😄 To bring it to a higher position overall in terms of the group's share value, profit of any performance measures. CORPORATE LEVEL STRATEGIES: I.   Grand Strategies 💜 Growth : to ensure next year's growth rates higher than the previous year. 💜 Stable growth : To target a growth rate similar to that as achieved in the previous year. 💜 Turnaround : The growth rate is positive as compared to the previous year.   For example IBM, Holiday Inn, Malaysian Airline System and Proton. 💜 Combination : For a big organization or a holding company, sometimes turnaround can be only done by the combination strategy where some of its components need to be dismantled or pruned o...
Read more

STRATEGIC MANAGEMENT FROM ISLAMIC PERSPECTIVE

THE QURANIC PERSPECTIVE RELATED TO STRATEGIC MANAGEMENT THE PROBLEM THE SOLUTION SURAH Al-Takathur (Quran, 102) Al-Asr (Quran, 103) DESCRIPTION People are competing with one another to get their destination quickly. They hide embarrassing information from the boss and they play political games inside the organization. Their focus is on this life. Successful people cooperate with one another because they are all in the same car. To arrive safely at their destination, they need to say the truth (even to their bosses) and they need to be patient (even when they do not get that promotion). Their focus is on life after death. MENTAL MODEL Competition Cooperation MOTIVATION Extrinsic Intrinsic PERSPECTIVE The life The next life METAPHOR A good driver drives quickly A good driver drives safely COMPETITIVE ADVANTAGE FROM AN ISLAMIC PERS...
Read more

IMPLEMENTING THE STRATEGIES

Image
🌹 Successful implementation requires certain sequence of activities that need to be done to give this process a higher chance of success. 🌹 4 steps are proposed : Convert the strategy to strategic objective (Specific, Measurable, Achievable, Realistic and Targeted within a specific time or SMART) Build the strategic action plan (SAP) Develop the strategic annual action plan 🌹🍉🍉🍉🍊🐤🐤🐤🐤 Look at the soft components of strategic implementation. STRATEGY TO STRATEGIC OBJECTIVES 🐤 Converting the strategy to something measurable requires that it is turned into a strategic objective statement. For example : The chosen strategy : 'backward integration to control the raw material supply' The strategic objective : ' to establish at least two firms to handle the company's need for 80% of the raw material supply in three years time' STRATEGIC ACTION PLAN 🐤 The SAP is the document to be used as a reference for management purposes. 🐤 The ac...
Read more