Strategic Planning

Matt H. Evans, matt@exinfm.com

A Good Strategy should . . .

Address critical performance issues Create the right balance between what the organization is capable of doing vs. what the organization would like to do Cover a sufficient time period to close the performance gap Visionary convey a desired future end state Flexible allow and accommodate change Guide decision making at lower levels operational, tactical, individual
Matt H. Evans, matt@exinfm.com

Environmental Analysis

Matt H. Evans, matt@exinfm.com

Internal Environment

Matt H. Evans, matt@exinfm.com

VALUE SYSTEM

MISSION & OBJECTIVE

MANAGEMENT STRUCTURE & NATURE

ATTITUDES

INTERNAL INTERNAL BUSINESS POWER ENVIRONMENT RELATIONSHIP

MISC. FACTORS
Matt H. Evans, matt@exinfm.com

COMPANY IMAGE & BRAND EQUITY

HUMAN RESOURCE
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Internal Environment
Miscellaneous Factors
Physical Assets & Facilities R&D Technological Capabilities Marketing Resources Financial Factors

Matt H. Evans, matt@exinfm.com

External Environment

Matt H. Evans, matt@exinfm.com

External Environment
Micro Environment
Matt H. Evans, matt@exinfm.com

Macro Environment
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MICRO ENVIRONMENT

Micro or task environment is more specific and immediate environment in which an organization conducts its business.
-Dunham & Pierce

Matt H. Evans, matt@exinfm.com

1.

Supplier

Reliability Multiple Supplier

Matt H. Evans, matt@exinfm.com

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2.
Types of Customers

Customer

Industrial Customers Institutional Customer Foreign Customer Retail Customer

Multiple Customer

Globalization
Customer Segmentation
Matt H. Evans, matt@exinfm.com

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3.

Market Intermediates

Types of Market Intermediates

Middlemen Marketing Agencies Financial Institution Physical Intermediates

Matt H. Evans, matt@exinfm.com

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4.

Public

Matt H. Evans, matt@exinfm.com

Media Publics Local Public

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MACRO ENVIRONMENT
Economic Political Social-Cultural Technological Natural Demographic International

Matt H. Evans, matt@exinfm.com

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1. ECONOMIC ENVIRONMENT

Economic Conditions
Boom Depression

Economic System
Capitalist Socialist Mixed Economy

Economic Policies
Monetary Policy Fiscal Policy Foreign Trade Policy Foreign Investment Industrial Policy
Matt H. Evans, matt@exinfm.com

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2. POLITICAL ENVIRONMENT

Political Ideology of Govt.

Political stability in the Economy. Foreign Policy of Govt. Defense & Military Policy. Centre state relationship.

Matt H. Evans, matt@exinfm.com

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Political Environment

Politcal Environment
Political System Constitution Environment Preamble
Fundamental Rights

Legislature
Executive

Judiciary

Directives Principles of State Policy

Matt H. Evans, matt@exinfm.com

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3. Socio-Cultural Environment Urbanization Religion Tastes & Preferences Customs & Tradition in Society Health & Quality of Life Language

Matt H. Evans, matt@exinfm.com

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4. Technological Environment Innovation Research & Development Inflow of foreign Technology etc.

Matt H. Evans, matt@exinfm.com

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5. Natural Environment Climatic & weather condition. Availability of Natural resources. Topographical factors: Physical features of place. Pollution Control

Matt H. Evans, matt@exinfm.com

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6. Demographic Environment Age Composition Sex Composition Education Level Family size & structure Urban-rural population

Matt H. Evans, matt@exinfm.com

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7. International Environment Globalization Oil Price hike International Terrorism Cultural Exchange

Matt H. Evans, matt@exinfm.com

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SWOT
Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers, . . .

External Assessment: Marketplace, competitors, social trends, technology, regulatory environment, economic cycles .

SWOT

SWOT

Good Points
Easy to Understand Apply at any organizational level

Possible Pitfalls
Needs to be Analytical and Specific Be honest about your weaknesses
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Matt H. Evans, matt@exinfm.com

Strengths

Strengths Those things that you do well, the high value or performance points Strengths can be tangible: Loyal customers, efficient distribution channels, very high quality products, excellent financial condition Strengths can be intangible: Good leadership, strategic insights, customer intelligence, solid reputation, high skilled workforce Often considered Core Competencies Best leverage points for growth without draining your resources
Matt H. Evans, matt@exinfm.com

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Weaknesses

Weaknesses Those things that prevent you from doing what you really need to do Since weaknesses are internal, they are within your control Weaknesses include: Bad leadership, unskilled workforce, insufficient resources, poor product quality, slow distribution and delivery channels, outdated technologies, lack of planning, . . .

Matt H. Evans, matt@exinfm.com

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Opportunities

Opportunities Potential areas for growth and higher performance External in nature marketplace, unhappy customers with competitors, better economic conditions, more open trading policies, . . Internal opportunities should be classified as Strengths Timing may be important for capitalizing on opportunities

Matt H. Evans, matt@exinfm.com

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Threats

Threats Challenges confronting the organization, external in nature Threats can take a wide range bad press coverage, shifts in consumer behavior, substitute products, new regulations, . . . May be useful to classify or assign probabilities to threats The more accurate you are in identifying threats, the better position you are for dealing with the sudden ripples of change
Matt H. Evans, matt@exinfm.com

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