BUSINESS STRATEGY, PLANNING,
AND IMPLEMENTATION
Prof. Ir. Dr. Sevia Mahdaliza Idrus
MKET1623 S2 2024/25 - Chap 3
References:
Morse &
Babcock Chap3
Robbins &
Coulter
Chap8
Planning Means
LOOKING AHEAD
Tun Mahathir Mohamad
What is Planning?
Planning:
• Entrepreneurs function involves setting goals, establishing
strategies for achieving those goals, and developing plans to
integrate and coordinate business activities
• Provides method for identifying objectives
• Design sequence of programs and activities to achieve objectives
Formal planning
• Specific, time-oriented goals
• Goals written and shared
Effective Planning
• Plan to plan
• People implementing
plan should be
involved in preparing
plan
Why Do Entrepreneurs Plan?
• Provides business direction
• Reduces uncertainty
• Minimizes waste and risks
• Establishes the goals and
standards for controlling
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What must be done?
2
Questions for Entreprenuer
How will it be done?
When must it be done?
4
Why Do
Entrepreneur
Plan
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6
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How much will it cost?
What is the problem & purpose?
How to establish Goal & Objectives?
How to satisfied Client?
What is the business success criteria
Planning and Performance
• Formal planning is associated with positive
financial results
• Quality of planning/implementation more
important than the extent of it
• External factors can reduce the impact of
planning on performance
• Planning-performance relationship seems
to be influenced by the planning time frame
Types of Plans
The most popular ways to describe organizational plans. (Fig 8-1, Robbins & Coulter)
STRATEGIC PLANS
plans that apply to the
company and establish the
company’s overall goals
OPERATIONAL PLANS
LONG TERM
PLANS
plans that encompass a
particular operational area of
the company
plans with a time frame
beyond three years
SHORT TERM PLANS
plans covering one year or
less
SPECIFIC PLANS
plans that are clearly defined
and leave no room for
interpretation
DIRECTIONAL PLANS
plans that are flexible and set
out general guidelines
SINGLE USE PLANS
a one-time plan
specifically designed to
meet the needs of a
unique situation
STANDING PLANS
ongoing plans that provide
guidance for activities
performed repeatedly
The Foundation for Planning
Missio
1
n
INFOGRAPHIC
Purpose
or Goal
All Customer
Driven
2
INFOGRAPHIC
INFOGRAPHIC
3
Strategies
4
Objectives
With Captain Izham, GCEO Malaysia
Airlines promoting IUSB services
Strategic Planning…… what’s this all about?
• How a company meets its
needs and objectives
• Strategy helps to:
– Establish priorities
– Choose actions
– Create a plan
– Allocate resources
– Be proactive
What is a strategic plan?
• A document that says why a company
exists, what it aims to do, and how it
will do it
• It helps to focus the company’s vision
and priorities
• Suggests ways (strategies) to identify
and to move toward desired future
states
• Consists of the process of developing
and implementing plans to reach
goals and objectives
Strategic planning does not…
• Predict the future
• Replace good leadership and judgment
• Follow a smooth, straightforward process
A strategic plan is a living document
— you can adapt it as needed!
Assess
organization
Develop
vision and
mission
Monitor
and
evaluate
Implement
Developing
Strategic
Planning
Write it all
down!
Agree on
priorities
Assess
environment
Keys To Effective Strategic Planning
• Focus only on the
most important
issues
• Be willing to question
• Produce a document
Where
do we
want to
go?
The
Vision
What
community
do we
dream of?
What do
we want
to
achieve?
What do
we want
to be?
VISION
A Vision Statement describes
the desired future position of
the company or organization.
MISSION
A Mission Statement defines the company's
business or organization purposes, its objectives
and its approach to reach those objectives.
Elements of Mission and
Vision Statements are often
combined to provide a
statement of the company’s or
organization’s purposes,
goals and values.
https://www.utm.my/about/vision-mission/
Strategic
Planning
Cycle
Assessing Our Environment
Internal
External
Setting Priorities
How can we
be most
effective?
How do we
use our
strengths to
take
advantage of
opportunities?
SWOT
How do we
use our
strengths to
make us less
vulnerable to
threats?
How do we
overcome our
weaknesses to
take
advantage of
opportunities?
How do we
overcome the
weaknesses
that make us
vulnerable to
threats?
Our Reason for Being
• Communicate to the world
what your company do and
why
• Different from goals or
objectives
• Balance the head and the
heart—inspire!
How to conduct a SWOT Analysis
for your own Vision and Mission.
Difficult to do
LATER
How?
Easy to do
Impact-Effort Grid… for Goal Setting
Now
Wow!
Low impact
High impact
Goals vs. Objectives
Goal
Objective
• A greater purpose
• A long-term outcome
• May not be easy to measure
• A specific, short-term
action that will contribute to
achieving a goal
• Must be measurable
[Example: to market iSmarUrus
Sdn Bhd consultation services
to all GLCs.]
[Example: Create a website
with accurate and current
information about iSmartUrus
Sdn Bhd expertise.]
Well Written Goal
Characteristics
Written in terms of outcomes rather than actions
Measurable and quantifiable
Clear as to a time frame
Challenging yet attainable
Written down
Communicated to all necessary business partners
SMART Objectives
Specific – Who? What? Where? How?
Measurable – How many? How can this be measured?
Achievable – Is it possible?
Realistic – Is it possible given our time and resources
available?
Timebound – When?
Each objective should be written in precise terms that
leave no room for misinterpretation.
Goals vs. Objectives
Planning Objective
Planning Goal Statement
More detailed goal statement
Clarifies goal
How do we go about it?
Consistent with business
Gives purpose and direction
Used as continual point of
reference for questions regarding
scope or purpose
Goal
Develop Goal
Why?
What do we do?
For whom do we do it?
Objectives
Develop Objective
Specific
Measurable
Attainable
Realistic
Time-limited
The Downside of Traditional Goal-Setting
Traditional goalsetting: an approach
to setting goals in
which top managers
set goals that then
flow down through
the organization and
become subgoals for
each organizational
area
Drucker’s Objectives for Organizational Survival
• Market Share
• Innovation
• Productivity
• Profitability
• Social Responsibility
• Worker Performance & Attitude
• Physical & Financial Resources
• Manager Performance and
Development
Means-Ends Chain and MBO
• Means-ends chain: an integrated network of goals in which
the accomplishment of goals at one level serves as the
means for achieving the goals, or ends, at the next level
• Management by objectives (MBO): a process of setting
mutually agreed upon goals and using those goals to
evaluate employee performance
Management by Objectives
• Commonly Referred to as MBO
• Corollary MBWA (Management
by Walking Around)
Steps in MBO
Step 1: The organization’s overall objectives and strategies are formulated.
Step 2: Major objectives are allocated among divisional and departmental units.
Step 3: Unit managers collaboratively set specific objectives for their units with their managers.
Step 4: Specific objectives are collaboratively set with all department members.
Step 5: Action plans, defining how objectives are to be achieved, are specified and agreed upon by
managers and employees.
Step 6: The action plans are implemented.
Step 7: Progress toward objectives is periodically reviewed, and feedback is provided.
Step 8: Successful achievement of objectives is reinforced by performance-based rewards.
Planning and Organizational Level
Planning and Organizational Level
Environmental
Uncertainty
When uncertainty is high,
plans should be specific, but
flexible.
Approaches to
Planning
Formal planning unit: a
group of planning
specialists whose sole
responsibility is helping to
write organizational plans
Length of Future Commitments
Commitment concept: plans should extend far
enough to meet those commitments made when
the plans were developed
Strategic
Business
Planning
Process
Strategic Plan
vs
Business Plan
How Can Entrepreneur
Plan Effectively in Dynamic Environments?
• Develop business plans
that are specific but
flexible
• Keep planning even when
the environment is
uncertain
• Allow company to set
goals and develop plans
• Well aware with market trend
How Can Entrepreneurs
Use Environmental Scanning?
• Environmental scanning:
screening information to
detect emerging business
trends
• Competitor intelligence:
gathering information about
competitors that allows
entrepreneur to anticipate
competitors’ actions rather
than merely react to them
Digital Tools
• Business intelligence:
data that entreprenuer
can use to make more
effective strategic
decisions
• Digital tools: technology,
systems, or software
that allow the user to
collect, visualize,
understand, or analyze
data
3 Prevalent Digital Tools
• Data visualization tools
• Cloud computing: refers to
storing and accessing data on
the Internet rather than on a
computer’s hard drive or a
company’s network
• Internet of things (IoT): allows
everyday “things” to generate
and store and share data across
the Internet
Forecasting
Essential preliminary to
effective planning
Entrepreneur must be
concerned with both future
markets and future technology
Why Forecasting?
Forecasting
Forecasting
Method
Entrepreneurs- Forecasting Remarks
Entrepreneurs- Forecasting Remarks
Competitive positioning strategy in telecom industry
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Business Model Canvas
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BMC is popular with
entrepreneurs for business
model innovation.
Business Model Canvas
1.
2.
3.
4.
5.
6.
7.
8.
9.
Customer Segments: Who are the customers? What do they think? See? Feel? Do?
Value Propositions: What’s compelling about the proposition? Why do customers buy,
use?
Channels: How are these propositions promoted, sold and delivered? Why? Is it
working?
Customer Relationships: How do you interact with the customer through their
‘journey’?
Revenue Streams: How does the business earn revenue from the value propositions?
Key Activities: What uniquely strategic things does the business do to deliver its
proposition?
Key Resources: What unique strategic assets must the business have to compete?
Key Partnerships: What can the company not do so it can focus on its Key Activities?
Cost Structure: What are the business’ major cost drivers? How are they linked to
revenue?
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Name1, Name2, …
Startup Name
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we
acquiring from partners?
Which Key Activities do
partners perform?
MOTIVATIONS FOR
PARTNERSHIPS:
Optimization and economy,
Reduction of risk and
uncertainty, Acquisition of
particular resources and
activities
What Key Activities do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
CATEGORIES:
Production, Problem Solving,
Platform/Network
What Key Resources do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships
Revenue Streams?
TYPES OF RESOURCES:
Physical, Intellectual (brand
patents, copyrights, data),
Human, Financial
What value do we deliver to
the customer? Which one of
our customer’s problems are
we helping to solve? What
bundles of products and
services are we offering to
each Customer Segment?
Which customer needs are we
satisfying?
CHARACTERISTICS:
Newness, Performance,
Customization, “Getting the
Job Done”, Design,
Brand/Status, Price, Cost
Reduction, Risk Reduction,
Accessibility,
Convenience/Usability
What are the most important costs inherent in our business model? Which Key
Resources are most expensive? Which Key Activities are most expensive?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing), Value Driven (focused on
value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable costs,
Economies of scale, Economies of scope
What type of relationship does
each of our Customer
Segments expect us to
establish and maintain with
them? Which ones have we
established? How are they
integrated with the rest of our
business model? How costly
are they?
DD/MM/YYYY
For whom are we creating
value? Who are our most
important customers? Is our
customer base a Mass Market,
Niche Market, Segmented,
Diversified, Multi-sided
Platform
Through which Channels do
our Customer Segments want
to be reached? How are we
reaching them now? How are
our Channels integrated?
Which ones work best? Which
ones are most cost-efficient?
How are we integrating them
with customer routines?
For what value are our customers really willing to pay? For what do they currently
pay? How are they currently paying? How would they prefer to pay? How much does
each Revenue Stream contribute to overall revenues?
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing,
Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
Designed by: The Business Model Foundry (www.businessmodelgeneration.com/canvas). PowerPoint implementation by: Neos Chronos Limited (https://neoschronos.com). License: CC BY-SA 3.0
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Movie of The Week
Steve Jobs takes us behind the scenes
of the digital revolution, to paint a
portrait of the man at its epicenter.
The story unfolds backstage at three
iconic product launches, ending in
1998 with the unveiling of the iMac.
People close to Jobs such as Steve
Wozniak and John Sculley praised the
performances, but the film also received
criticism for historical inaccuracy.
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Terima Kasih.Thank You
sevia@utm.my
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