THE PLANNING PROCESS

Strategic Planning
SWOT Analysis

Internal
Factors
External
Factors

Opportunities (O)

Threats (T)

Strengths (S)

Weaknesses (W)

SO Strategy (Maxi-Maxi):

WO Strategy (Mini-Maxi):

Use strengths to maximize

opportunities

Minimize weaknesses using

opportunities

ST Strategy (Maxi-Min):

WT Strategy (Mini-Mini):

Use strengths to minimize

threats

Try to minimize weaknesses

and threats through
restructuring,, creating joint
ventures, etc.

COMPANY STRATEGIES
Strategy

of unique product

Strategy

of diversification

PRODUCT STRATEGIES
Porter Strategies
Strategy Type

Definition

Examples

Differentiation

Distinguish products or services

Rolex (watches)
Mercedes-Benz (automobiles)
Nikon (cameras)
Cross (writing instruments)
Hewlett - Packard (calculators)

Overall cost leadership

Reduce manufacturing and other

costs

Timex
Hyundai
Kodak
BIC
Texas Instruments

Focus

Concentrate on specific regional

market, product market or group
of buyers

Longines
Fiat, Alfa Romeo
Polaroid
Waterman Pens
Fisher Price

PRODUCT STRATEGIES

Miles and Snow Strategies

Strategy Type
Prospector

Defender

Definition
Innovative and growth
oriented, searches for new
markets and new growth
opportunities, encourages risk
taking

Examples
3M

Protects current markets,

maintains stable growth, serves
current customers

BIC

Analyzer

Maintain current markets

and current customer satisfaction
with moderate emphasis on
innovation

IBM

Reactor

No clear strategy, reacts to

changes in the environment

International Harvester
W.T. Grant

TACTICAL PLANNING
STEP 1 Establish tactical goals: to be established at each departmental level, starting from the
strategic goals, to realize strategic plans

STEP 2 Developing tactical plans: establish future actions, timing and necessary resources

OPERATIONAL PLANNING
STEP 1 Establish operational goals: to be established at each operational level
from the department, starting from the tactical goals, to realize tactical plans

STEP 2 Developing operational plans: establish future actions, timing and

necessary resources

TYPES OF OPERATIONAL PLANS

Plan
Single-use plans

Description
Developed to carry out a course of action not likely to be carried
out in the future

- Program

Single-use plan for a large set of activities

- Project

Single-use plan of less scope and complexity than a program

Standing plans

Developed for activities that recur regularly over a period of time

- Policy

Standing plan specifying the organizations general response to a

designated problem or situation

- Standard operating
procedure

Standing plan outlining steps to be followed in particular

circumstances

- Rules and regulations

Standing plans describing exactly how specific activities are to be

carried out

BUSINESS PLAN
Executive Summary
1. Business description: a brief description of the product or service proposed
to be realized and the perspectives for the next 5-10 years
2. Strategic planning: present the concrete activities to reach the long term objectives,
taking into account the stage of your product
3. The market: a brief description of the targeted market segments and of the
penetration channels and, also, present the utility product for the final consumer
4. Conducerea companiei: present the company management system and the
responsibilities of each manager
5. Financial aspects: show estimated sales and profits for the next 5 years, the
involved costs and how much represent your contribution

Business plan The content

A. The Purpose of Company
B. The Objectives
C. The Market Analysis
D. The production process
E. The marketing strategies
F. The financial planning
G. The company organization and Management
H. The ownership form of business
I. The critical risks and problems
J. Summary and Conclusions
Appendices

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