Strategic Planning

Module 5
LIS 580: Spring 2006
Instructor- Michael Crandall

Roadmap

The strategic management process

Mission and vision statements
Analyzing strategic drivers and core
competencies
SWOT analysis
Scenario planning

April 11, 2006

LIS580- Spring 2006

Checklist 5.1
The Strategic Management Process
Define the business and its mission.
Perform external and internal audits.
Translate the mission into strategic
goals.
Generate and select strategies to
reach strategic goals.
Implement the strategy.
Evaluate performance.
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

A Comprehensive StrategicManagement Model

Source: Adapted from Fred David, Strategic Management (Upper Saddle River, NJ: Prentice-Hall, 2001), p. 77.

April 11, 2006

LIS580- Spring 2006

FIGURE 51
G.Dessler, 2003

Vision and Mission

A vision statement tells people

Where we want to go
What we want to become
What we want to accomplish
Why it is important

And a mission expresses the organizations:

Purpose - the needs we exist to address
Business - what are we doing to address these
Values - what principles or beliefs guide our work

April 11, 2006

LIS580- Spring 2006

Examples of Mission Statements

APEX
APEXELEVATOR
ELEVATOR
To
Toprovide
provideaahigh-reliability,
high-reliability,error-free
error-freemethod
methodfor
formoving
movingpeople
peopleand
and
products
productsup,
up,down,
down,and
andsideways
sidewayswithin
withinaabuilding.
building.
UNITED
UNITEDTELEPHONE
TELEPHONECORPORATION
CORPORATIONOF
OFDADE
DADE
To
Toprovide
provideinformation
informationservices
servicesininlocal-exchange
local-exchangeand
andexchange-access
exchange-access
markets
marketswithin
withinits
itsfranchised
franchisedarea,
area,as
aswell
wellas
ascellular
cellularphone
phoneand
andpaging
paging
services.
services.
JOSEPHSON
JOSEPHSONDRUG
DRUGCOMPANY,
COMPANY,INC.
INC.
To
Toprovide
providepeople
peoplewith
withlonger
longerlives
livesand
andhigher-quality
higher-qualitylives
livesby
byapplying
applying
research
researchefforts
effortstotodevelop
developnew
newor
orimproved
improveddrugs
drugsand
andhealth-care
health-care
products.
products.
GRAY
GRAYCOMPUTER,
COMPUTER,INC.
INC.
To
Totransform
transformhow
howeducators
educatorswork
workby
byproviding
providinginnovative
innovativeand
andeasy-to-use
easy-to-use
multimedia-based
multimedia-basedcomputer
computersystems.
systems.
FIGURE 52

April 11, 2006

LIS580- Spring 2006

G.Dessler, 2003

Strategies in Brief
COMPANY
COMPANY

STRATEGIC
STRATEGICPRINCIPLE
PRINCIPLE

America
AmericaOnline
Online

Consumer
Consumerconnectivity
connectivityfirstanytime,
firstanytime,anywhere
anywhere

Dell
Dell

Be
Bedirect
direct

eBay
eBay

Focus
Focuson
ontrading
tradingcommunities
communities

General
GeneralElectric
Electric

Be
Benumber
numberone
oneor
ornumber
numbertwo
twoin
inevery
every
industry
industryin
inwhich
whichwe
wecompete,
compete,or
orget
getout
out

Southwest
SouthwestAirlines
Airlines

Meet
Meetcustomers
customersshort-haul
short-haultravel
travelneeds
needsat
atfares
fares
competitive
with
the
cost
of
automobile
travel
competitive with the cost of automobile travel

Vanguard
Vanguard

Unmatchable
Unmatchablevalue
valuefor
forthe
theinvestor-owner
investor-owner

Wal-Mart
Wal-Mart

Low
Lowprices,
prices,every
everyday
day

Source: Arit Gadiesh and James Gilbert, Frontline Action, Harvard Business Review, May 2001, p. 74.

FIGURE 53
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

Checklist 5.2
How to Test the Quality of Your
Strategy
Does your strategy fit with whats going on in
the environment?
Does your strategy exploit your key resources?
Will competitors have difficulty keeping up with
you?
Are the elements of your strategy internally
consistent?
Do you have enough resources to pursue this
strategy?
Can your strategy be implemented?
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

Relationships Among Strategies

in Multiple-Business Firms

FIGURE 54
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

Strategy Types
Corporate

Concentration
Vertical integration
Diversification
Status quo
Investment reduction
Strategic alliances/joint ventures

Competitive
Cost leadership
Differentiation
Focus
April 11, 2006

LIS580- Spring 2006

10

Forces Driving Industry Competition

Source: Reprinted with the permission of The Free Press, a division of Simon & Schuster from Competitive Strategy:
Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright 1980 by The Free Press.

April 11, 2006

LIS580- Spring 2006

FIGURE 55
G.Dessler, 2003

11

How the Internet Influences Industry

Structure

Source: Adapted from

Michael Porter,
Strategy and the
Internet, Harvard
Business Review,
March 2001, p. 67.

April 11, 2006

FIGURE 56
G.Dessler, 2003

LIS580- Spring 2006

12

Examples of a Companys Strengths,

Weaknesses, Opportunities, and
Threats

FIGURE 77
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

13

Worksheet for Environmental Scanning

FIGURE 58
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

14

Checklist 5.3
How to Benchmark
Focus on a specific problem and define it
carefully
Use employees who will actually
implement changes to identify the bestpractices companies and to conduct onsite studies.
Be willing to share information with others.
Avoid sensitive issues such as pricing, and
dont look for new product information.
Keep information you receive confidential.
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

15

Cineplex Odeon TOWS Matrix

Source: Fred
David, Strategic
Management
(Upper Saddle
River, NJ:
Prentice-Hall,
2001), p. 207.

April 11, 2006

FIGURE 59
G.Dessler, 2003

LIS580- Spring 2006

16

BCG Matrix

FIGURE 510
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

17

Checklist 5.4
Scenario Planning Principles

Scenarios have value only to the extent that

they inform decision makers and influence
decision making.
Scenarios add value to decision making only
when managers and others use them to
systematically shape questions about the
present and the future, and to guide how to go
about answering them.
In each step of developing scenarios, the
emphasis must be on identifying, challenging,
and refining the substance of managers
mindsets and knowledge.
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

18

Checklist 5.4 (contd)

Scenario Planning Principles

Alternative projections about a given future

must challenge managers current mental
models by creating tension among ideas,
hypotheses, perspectives, and assumptions.

The dialogue and discussion spawned by the

consideration of alternative futures should
directly affect managers knowledge.

Scenarios should include enough indicators

so that managers can track how the future is
actually evolving so that the learning and
adaptations stimulated by the scenarios are
continuous.
G.Dessler, 2003

April 11, 2006

LIS580- Spring 2006

19

Southwest Airlines Activity System

Source: Reprinted by permission of Harvard Business Review. From What Is Strategy? by Michael E. Porter,
NovemberDecember 1996. Copyright 1996 by the President and Fellows of Harvard College; all rights reserved.

April 11, 2006

LIS580- Spring 2006

FIGURE 511
G.Dessler, 2003

20

Strategic Fit vs. Stretch

Southwest follows Michael Porters view
that functional strategies should support
corporate and competitive strategies
Hamel and Prahalad argue that
leveraging resources is more important
for long-term success
Core competencies define key strengths
of the organization, and provide the
focus for strategic choices
April 11, 2006

LIS580- Spring 2006

21

Cleveland Public Library

How did the library go about building their
plan?
Did they effectively engage the stakeholders in
the process?
What kinds of outside help did they seek in
formulating their plan?
How did the concrete steps they defined relate
to their mission and vision statements?
Were there any measurements of success
built into the plan?
April 11, 2006

LIS580- Spring 2006

22

Next Time

Guest lecture
Mike Eisenberg, Dean Emeritus, the Information
School

Read the iSchool Strategic Plan Mike wrote

in 1998, and think of it in the context of the
discussions weve been having over the past
several days
Come prepared with questions that use class
readings and discussion to examine this plan
A great chance to hear from someone whos gone
through a full planning cycle
April 11, 2006

LIS580- Spring 2006

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