STRATEGIC PLANNING
CHAPTER 9
Topics

Strategic Management Process
 Analysis
of Mission, Values, Objectives,
 Organizational Culture
 Analysis of Resources & Capabilities
 Analysis of Industry & Environment

Organizational Strategies
 Levels
of Strategy
 Types of Strategic Plans

Group Company Research Assignment &
Presentation
BOH4M- Chapter 9
Strategic Management Process
 Basic concepts of strategy
 Strategy — a comprehensive action plan that
identifies long-term direction for an organization and
guides resource utilization to accomplish organizational
goals with sustainable competitive advantage.
BOH4M- Chapter 9
Strategic Management Process
 Basic concepts of strategy:
Competitive advantage — operating with an attribute
or set of attributes that allows an organization to
outperform its rivals. Example: Walmart (inventory IT)
Sustainable competitive advantage — one that is
difficult for competitors to imitate. Example: Tim
Horton’s (double double, Canadiana, over 2600 shops)
BOH4M- Chapter 9
Strategic Management Process
 Strategic question for strategy formulation:
 What
 Who
is our business mission?
are our customers?
 What
do our customers consider value?
 What
have been our results?
 What
is our plan?
BOH4M- Chapter 9
Strategic Management Process
 Analysis of mission:
 The
reason for an organization’s existence.
 Good mission statements identify:
 Customers
 Products and/or services
 Location
 Underlying philosophy
 An important test of the mission is how well it serves
the organization’s stakeholders.
http://www.youtube.com/watch?v=fSi4HHNOnd0&safety_mode=true&persist_safety_mode=1&safe=active
 Examples
BOH4M- Chapter 9
Figure 9.2 How external stakeholders can be valued as
strategic constituencies of organizations.
BOH4M- Chapter 9
Strategic Management Process
 Analysis of values:

Values are broad beliefs about what is or is not appropriate.

Strong core values for an organization helps build institutional identity,
gives character to an organization, and it backs up the mission
statement.

Organizational culture reflects the dominant value system of the
organization as a whole.

Apple Example
BOH4M- Chapter 9
Strategic Management Process

Organizational culture 
 Shapes
the values of managers and other
organization members.
 Points people in common directions.
 Helps build institutional identity.
 Gives character to the organization in the eyes of
employees and external stakeholders.
 Backs up the mission statement.
 Guides the behaviour of organizational members in
meaningful and consistent ways.
BOH4M- Chapter 9
Strategic Management Process
 Strong cultures:
 Commit members to do things that are in the best interests
of the organization.
 Discourage dysfunctional work behaviour.
 Encourage functional work behaviour.

The best organizations have strong cultures that:
Are performance-oriented.
 Emphasize teamwork.
 Allow for risk taking.
 Encourage innovation.
 Value the well being of people.

BOH4M- Chapter 9
Strategic Management Process
2 Levels of Organizational Culture
 Core Culture - Underlying assumptions and beliefs that
influence behaviour and contribute to the observable
culture.
 Observable Culture - What one sees and hears when
walking around an organization.

Google Video
BOH4M- Chapter 9
Figure 4.4 Levels of organizational culture—
observable culture and core culture.
BOH4M- Chapter 9
I don’t know how it started, either. All I know is that it’s part of our
corporate culture.
BOH4M- Chapter 9
Strategic Management Process

Core culture and values:
 Strong
cultures have a small but enduring set of core
values.
 Commitment to core values is a key to long-term
success.

Important cultural values include:
Performance excellence
 Social responsibility
 Worker involvement
 Teamwork

Innovation
Integrity
Customer service
BOH4M- Chapter 9
Strategic Management Process

Analysis of objectives:
 Operating
objectives direct activities toward key
and specific performance results.
 Typical operating objectives:








Profitability
Market share
Human talent
Financial health
Cost efficiency
Product quality
Innovation
Social responsibility
BOH4M- Chapter 9
Strategic Management Process

Analysis of organizational resources and
capabilities:
 Important
goal of assessing core competencies.
 Potential core competencies:
 Special
knowledge or expertise.
 Superior technology.
 Efficient manufacturing approaches.
 Unique product distribution systems.
BOH4M- Chapter 9
Figure 9.3 SWOT analysis of strengths,
weaknesses, opportunities, and threats.
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Strategic Management Process
 Analysis of industry and environment:
 Assessment of macro environment:





Technology.
Government.
Social structures and population demographics.
Global economy.
Natural environment.
 Analysis



of industry environment:
Resource suppliers.
Competitors.
Customers.
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Strategic Management Process

Strategic forces to be
examined in conducting
an industry analysis:





Industry competitors
New entrants
Suppliers
Buyers
Substitutes
Unattractive industry.
 5 forces are
favourable for the
firm.
Attractive industry.
 5 forces are
unfavourable for
the firm.
BOH4M- Chapter 9