Strategic PlanningAn introduction to classic concepts

Aims of today

•The what

•The how

•The where

•Case study

What does strategy mean to

you?

Text book definition of strategy

• Where is the business trying to get to in the long-term?

• Which markets should a business compete in and what kind of activities are involved in such markets?

• What resources are required in order to be able to compete?

• What external, environmental factors affect the businesses’ ability to compete?

• What are the values and expectations of the stakeholders of the business?

Source: Johnson and Scholes - Exploring Corporate Strategy

Get it right...

Get it wrong...

$135 in 12 months

$200M in six years

1999 2009

So how do you go about creating a successful

strategy?

Popular strategy tools

•SWOT

•PEST

•Porter’s Five Forces

•Mintzberg’s 5 Ps

SWOT

OpportunitiesOpportunities

StrengthsStrengths

ThreatsThreats

WeaknessesWeaknesses

PEST

PP

EE

SS

TT

Political factors

Environmental factors

Socialcultural factors

Technological factors

Porter’s Five Forces

Mintzberg’s Five Ps for strategy

• Plan - an intended course of action

• Ploy - manoeuvre to outwit a competitor

• Pattern - consistency in behaviour over time

• Position - particular products for particular markets

• Perspective - an organisation’s fundamental way of doing things, e.g. the McDonald’s way

Where to start

Starting blocks

•Have goals - short and long term

•Select the right tools for the job

•Decide an initial time frame

•Be flexible

•Always have an end game

Case Study: Motorola

• Motorola was the #1 mobile manufacturer in the world for years

• Much of this success was down to it being first to market

• It lost market share when it failed to keep up with consumer needs

• Flawed strategy which relied too heavily on single hero products

• Poor plan of succession

• Will Motorola repeat the same mistake with Android?