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THE PLANNING PROCESSTHE PLANNING PROCESS

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Strategic Strategic PlanningPlanning SWOT AnalysisSWOT Analysis

Internal

FactorsExternalFactors

Strengths (S) Weaknesses (W)

Opportunities (O)

SO Strategy (Maxi-Maxi):

Use strengths to maximize opportunities

WO Strategy (Mini-Maxi):

Minimize weaknesses using opportunities

Threats (T)

ST Strategy (Maxi-Min):

Use strengths to minimize threats

WT Strategy (Mini-Mini):

Try to minimize weaknesses and threats through restructuring,, creating joint ventures, etc.

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COMPANY STRATEGIESCOMPANY STRATEGIES

Strategy of unique product

Strategy of diversification

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PRODUCT STRATEGIESPRODUCT STRATEGIES Porter Strategies Porter Strategies

Strategy Type Definition Examples

Differentiation

Overall cost leadership

Focus

Distinguish products or services

Reduce manufacturing and other costs

Concentrate on specific regional market, product market or group of buyers

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

TimexHyundaiKodakBICTexas Instruments

LonginesFiat, Alfa RomeoPolaroidWaterman PensFisher Price

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PRODUCT STRATEGIESPRODUCT STRATEGIES Miles and Snow Strategies Miles and Snow Strategies

Strategy Type Definition Examples

Prospector

Defender

Analyzer

Reactor

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

Protects current markets, maintains stable growth, serves current customers Maintain current markets and current customer satisfaction with moderate emphasis on innovation

No clear strategy, reacts to changes in the environment

3M

BIC

IBM

International HarvesterW.T. Grant

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TACTICTACTICAL AL PLANPLANNNIINGNG

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

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OPERATIONAL PLANNINGOPERATIONAL 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

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TYPES OF OPERATIONAL PLANSTYPES OF OPERATIONAL PLANS

Plan Description

Single-use plans

- Program

- Project

Standing plans

- Policy

- Standard operating procedure

- Rules and regulations

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

Single-use plan for a large set of activities

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

Developed for activities that recur regularly over a period of time

Standing plan specifying the organization’s general response to a designated problem or situation

Standing plan outlining steps to be followed in particular circumstances

Standing plans describing exactly how specific activities are to be carried out

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BUSINESS PLANBUSINESS 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

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Business planBusiness plan – – The contentThe content

A. The Purpose of CompanyB. The Objectives C. The Market AnalysisD. The production processE. The marketing strategiesF. The financial planningG. The company organization and ManagementH. The ownership form of businessI. The critical risks and problemsJ. Summary and Conclusions

Appendices