Strategic Planning

Converting the top down sequence into right to left planning

the strategies is advised to always begin with end in mind
R-L starts at the end ,which is vision of organization several years
down the road depending on the planning period
The vision is the futuristic picture of the enterprise
From the vision ,the organization should articulate a mission
statement which is the purpose for being of the organization
The vision and mission , together , define the next exercise which
is to the articulate objectives of the organization
Objectives are miserable end results that can be further defined
by one or more key results areas or kras
These kra's are concrete manifestations that the OBJECTIVES are
being achieved
They still described in qualities terms
The PERFORMANCE INDICATORS pr PIs are the quantification
kra's and serve as PERFORMANCE TARGETS for the different years
or even months within the planning period

 The PIs are end results or outcomes that

usually fall into any of the six Rs :
Reach
Recognition
Rating
Revenues
Returns and
Responsiveness

From the PIs the strategist proceeds to ask : in how many major ways or means
can strategists achieve these performance indicators ?
The answers to the questions would yield alternative STRATEGIES or strategic
options.
For each strategic options the strategists would then develop action plans or
programs that would operationalize the strategies
The programs should then be fleshed out in terms of organizational ACTIVITIES
which in turn are cascaded into specific tasks which individuals in the
organization should accomplish
In order to undertake the SPAT the strategists must estimate the resources
required in carrying them out
These can be broken down into PEOPLE RESOURCES PESO OR MONEY
RESOURCES and PHYSICAL ASSESTS AND CONDITIONS.
These are the three piece of resources
The whole R-L planning spectrum takes an acronym of VMOKraPi-SPATRES
The bottom up sequence

of RATIONAL SEQUNTIAL and ANALYTICAL STRAEGIZING IS A TEDIOUS MEYCULOUS

AND HUMUNGOS AND UNDETAKINING
Hence assessment and evaluation of the external and internal environments of the
strategizing organization .

 To articulated vision of double

happiness was :
to establish a commanding presence
and market leadership as a food
chain servicing major bus terminals
in central Luzon within the next five
years.

 Next entrepreneur developed a

MISSION STATEMENT (which
essentially proclaimed the basic
purpose for the existence of the
organization)to provide quality food
and passenger convenience services
that would generate sufficient profits
for stockholders and improve the
lives of its employees

 Objective are measurable end results

and for business organizations usually
center around four major ends:
Increasing profits
Expanding markets
Satisfying customers with quality
products or services and
Providing reasonable and benefits to
employees

 For double happiness SPECIFIC OJECTIVES:

To establish a strong market presence in
central Luzon
To earn good financial returns for its
owners.
To delight customers with high quality
food services
To make double happiness a happy a
rewarding place to work in.

Objectives translated into

KRAs

objectives

Key Result Areas

1
To establish strong
market presence in central
Luzon

1a number of food outlets in major bus terminals in central Luzon

this measures of market reach
1b sales volume attained this amount in pesos sold which is a
measure of market success
1c markets hare in central Luzon this measurement of market
leader ship

2 To earn good financial

return for its owners

a. Amount of net profits realized for the past five years this is the
bottom line
b. \
B return equity or ROE or net profits divided by the stock holders
equity this ts ti relate profits to the equity invest met made since
entrepreneur invest their own money called stock holders equity
they want to measure the financial yield on their investments trough
the ROE measure
C .Return on assets ROA or return on investment ROI these are net
profits divided by the total assets or investment of they enterprises
since the loan and equity funds raised by the enterprise are
invested assets the ROA or ROI measures on much process
regenerated by the total vestment made by the enterprise
D,return on sales or net profits divided by the sales this is mesure of
the net profit margins the enterpirise is makig

Objectives translated into

KRAs
objectives

Key Result Areas

3 To delight customers high

quality food and services

3a growth in sales per outlet this indicates

increasing patronage due to good food service
3b percentage of repeat customers this
indicates how satisfied the customers were the
first or subsequent

4 To make double happiness a

happy and rewarding place to
work in

4a compensation and benefits of mangers