THE PLANNING PROCESS
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Strategic Planning
SWOT Analysis
Internal
Factors
Strengths (S)
Weaknesses (W)
External
Factors
Opportunities (O)
Threats (T)
SO Strategy (Maxi-Maxi):
WO Strategy (Mini-Maxi):
Use strengths to maximize
opportunities
Minimize weaknesses using
opportunities
ST Strategy (Maxi-Min):
WT Strategy (Mini-Mini):
Use strengths to minimize
threats
Try to minimize weaknesses
and threats through
restructuring,, creating joint
ventures, etc.
2
COMPANY STRATEGIES

Strategy of unique product

Strategy of diversification
3
PRODUCT STRATEGIES
Porter Strategies
Strategy Type
Definition
Examples
Differentiation
Distinguish products or services
Rolex (watches)
Mercedes-Benz (automobiles)
Nikon (cameras)
Cross (writing instruments)
Hewlett - Packard (calculators)
Overall cost leadership
Reduce manufacturing and other
costs
Timex
Hyundai
Kodak
BIC
Texas Instruments
Focus
Concentrate on specific regional
market, product market or group
of buyers
Longines
Fiat, Alfa Romeo
Polaroid
Waterman Pens
Fisher Price
4
PRODUCT STRATEGIES
Miles and Snow Strategies
Strategy Type
Prospector
Defender
Definition
Innovative and growth
oriented, searches for new
markets and new growth
opportunities, encourages risk
taking
Examples
3M
Protects current markets,
maintains stable growth, serves
current customers
BIC
Analyzer
Maintain current markets
and current customer satisfaction
with moderate emphasis on
innovation
IBM
Reactor
No clear strategy, reacts to
changes in the environment
International Harvester
W.T. Grant
5
TACTICAL PLANNING
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
6
OPERATIONAL 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 PLANS
Plan
Single-use plans
Description
Developed to carry out a course of action not likely to be carried
out in the future
- Program
Single-use plan for a large set of activities
- Project
Single-use plan of less scope and complexity than a program
Standing plans
Developed for activities that recur regularly over a period of time
- Policy
Standing plan specifying the organization’s general response to a
designated problem or situation
- Standard operating
procedure
Standing plan outlining steps to be followed in particular circumstances
- Rules and regulations
Standing plans describing exactly how specific activities are to be
carried out
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BUSINESS 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 plan – The content
A. The Purpose of Company
B. The Objectives
C. The Market Analysis
D. The production process
E. The marketing strategies
F. The financial planning
G. The company organization and Management
H. The ownership form of business
I. The critical risks and problems
J. Summary and Conclusions
Appendices
10
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the planning process