Chapter IV
Strategic Planning and
Organizational Objectives
1
Learning Objectives
When you finish this chapter, you should be able to:
Nature of strategic planning
Levels of strategy
Importance of strategy plan
Steps in the strategic planning process
Defining the mission of the organization
Developing the organizational objectives
Assessing organizational resources, risks, and
opportunities
Formulating strategy
Implementing strategy
2
I. Nature of strategic planning
Strategic planning is an organization's process of
defining its strategy, or direction, and making decisions
on allocating its resources to pursue this strategy,
including its capital and people.
1.1 Levels of strategy
Strategy can be formulated on three different levels:
-corporate level
-business unit level
-functional or departmental level.
1.2 The importance of strategy plan:
-We all need to know where we are going
-Plan is the compass
3
4
II. Steps in the strategic planning process
Steps in the strategic planning process:
Mission
Assessing: Resource, Risks, and
Opportunities
Formulating Strategy
Feedback
Objective
Implementing Strategy
Monitoring & Adapting Strategic Plans
5
2.1 Defining the mission of organization
The mission statement should be a clear and
succinct representation of the enterprise's purpose
for existence.
What do we do business?
Who is our customers?
What should we provide goods/services?
6
2.2 Developing the organizational objectives:
Objectives give the business a clearly defined target.
Create the road or approach
7
2.3 Assessing organizational resources, risks,
and opportunities
 Manager must analyze SWOT
 And compare to other organizations
8
SWOT Analysis
Strengths
-Profits
-Financial Resources
-Honest Customers
-Modern Physic Equipments
-Patent
Opportunities
Ability
Weaknesses
-Small line-products
-Lack of management
-Poor finance
-Poor market
-High cost of labor
-Increasing of demands
-Entrance new markets
-Buy technologic company
-Increasing of products
Treats
Problems
-Changes of customers’
demands
-Government’s policies
9
2.4 Formulating Strategy:
Environmental Strategies: (Focusing on resources
related to environment)
Strategic Model: Mr. Miles and Mr. Snow
discovered 4 strategies:
a. Prospector: new opportunity, & high risk >new
products>new markets
b. Defender: marketing stability, no changing
c. Analyzer: aggregating prospector & defender
d. Reactor: always no show clear plan, have trends to exchange of
opportunity.
10
2.4 Formulating Strategy:
Strategic Window:
Duration of limited time
Main tasks of markets appropriated to ability of
company
Monitoring external environment
11
2.4 Formulating Strategy:
 Strategic Business Unit (SBU): is understood as a
business unit within the overall corporate identity
which is distinguishable from other business
because it serves a defined external market where
management can conduct strategic planning in
relation to products and markets.
12
2.5 Implementing Strategy:
The selected strategy is implemented by means of programs,
budgets, and procedures. Implementation involves
organization of the firm's resources and motivation of the staff
to achieve objectives.
13
14
National HIV/AIDS Strategy Implementation
15
2.6 Monitoring and Adapting Strategic Plans:
Evaluation and control consists of the following steps:
Define parameters to be measured
Define target values for those parameters
Perform measurements
Compare measured results to the pre-defined standard
Make necessary changes
16
17