Strategic Planning@RichardMBrooks26th October 2015

Where do I want to be in 3 years from now. Given that; where do I need to be in 12 months and who do I need to talk to in the next 6 weeks.

Corporate StrategyStrategy will affect the overall direction of the organisation and establish its future working environment. Corporate strategy defines the markets and the businesses in which an organisation chooses to operate. Competitive or business strategy defines the basis on which it will compete.

If you don't know where you are going, any road will get you there. Lewis Carroll

You need a tool kit

“Let’s get a consultant in”

More management nonsense at http://dilbert.com/

To look into the future we need to teach managers to look through the lens of a good theory.

5 ForcesPorter’s five forces analysis is a framework to analyse the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity, expected level of entrepreneurs profit and therefore attractiveness of an Industry.Read More: https://hbr.org/video/3590615226001/the-explainer-porters-five-forces

Resources Based View of the FirmThe resource-based view (RBV) says the basis for the competitive advantage of a firm lies primarily in the application of a bundle of valuable tangible or intangible resources at the firm's disposal. In other words its what’s inside your company that counts and its how you arrange/aquire these resources which will give you sustainable competitive advantage. Read more: http://www.strategicmanagementinsight.com/topics/resource-based-view.html

PESTLE AnalysisUse this to track the wider environment around your company. The model asks you to look at the Political, Environmental, Social, Technological, Legal and Economic influences happening around you. Preferred over a SWOT analysis as this form of research naturally contains boundaries.Read More: http://pestleanalysis.com/what-is-pestle-analysis/

Business Model CanvasThe central model in Alexander Osterwalder’s book The Business Model Generation. Raising the thought process that business models are made of 9 distinct pieces. Model is easy to learn and to teach to managers. By working through each section your company gains the opportunity to innovate nine key aspects of your business. Read More: http://www.businessmodelgeneration.com/canvas/bmc

The Power of Conversation

PEST AnalysisPOLITICALecological/environmental current legislation future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market pressure- groups international pressure- groups wars and conflicts

ECONOMIChome economy economy trendsoverseas economies general taxation taxation specific to product/servicesseasonality issuesmarket/trade cyclesspecific industry factorsmarket routes trendsdistribution trendscustomer/end-user driversinterest/ exchange ratesinternational trade and monetary issues

SOCIALlifestyle trendsdemographicsconsumer attitudes and opinionsmedia viewslaw changes affecting social factorsbrand, company, technology imageconsumer buying patternsfashion and role modelsmajor events and influencesbuying access and trendsethnic/religious factorsadvertising and publicityethical issues

TECHcompeting technology developmentresearch fundingassociated/dependent technologiesreplacement technology/solutionsmaturity of technologymanufacturing maturity and capacityinformation and communicationsconsumer buying mechanisms/technologytechnology legislationinnovation potentialtechnology access, licencing, patentsintellectual property issuesglobal communications

Industry AnalysisPorter's five forces of competitive position Threat of New

Market Entrants

Threat of Substitute Products

Rivalry within the Industry

Bargaining Power of Buyers

Power ofSuppliers

More Reading >http://www.exed.hbs.edu/assets/documents/hbr-shape-strategy.pdf

The Power of Conversation

In your workgroups. Take either PEST or 5 forces.

Talk about the topic. Brainstorm the answers. I’ll be here to help.

In XX minutes we’ll end, reconvene and elect one member from each group to present (2 mins) their key findings from each part (then we’ll have lunch)…