strategic planning process 6 steps

They are: BCG’s model involves SBUs being plotted on a matrix according to the rate of market growth and their market share relative to that of the largest competitors. Make sure you assign responsibility to an individual. These are the issues your strategic plan should focus on. , including the key components that are needed to attract investor attention. What Is A Strategic Plan?

Marketing audit is a true starting point for strategic planning, since it is through the audit that the strategist arrives at a measure of both environmental opportunities and threats and of the capability of the organisation. internal environmental analysis. Strategic planning process steps 1. Weaknesses cannot be totally eliminated, but must be identified and minimised. By continuing, you agree to our cookie and privacy policies. Your strategic plan will be your roadmap to where you want to go. It should never end as a strategic plan should be a dynamic, living document. It is now apparent that corporate strategies need to be developed first. (b) It can buy a licence or franchise and. However, it may be obvious only to top management without it permeating the organisation to generate shared company values and style. Image Guidelines 5. The industrial market environment and how different factors affect the firms doing industrial marketing is show in Fig. This dynamic perspective encourages openness, innovation and a preparedness to change. (iii) The identification of future opportunities and threats. The retreat defines a few (usually around five) critical goals that provide specific areas of focus and include measurements that can be used to determine the degree of progress and success. Fig. Disclaimer 9. Avoid being distracted by anything else. months after you've implemented one. In the majority of industries, there are two ways in which new products are added. 6. Well, we do not want that to happen to you, so here are six essential step you'll need to take in developing your strategic plan: Take the time to develop a mission statement, or take a critical look at your current statement. I was buried in the enterprise.”.

And, these objectives needs to be made SMART--Specific, Measurable, Achievable, Results-Focused and Timebound. It is a lot more detailed and can take months to create. Step 3 – Strategic Planning Retreat – The next step is a strategic retreat with the people who will be leading the organization. Any repetitive task is de-skilled and automated and hence less risk or failure and mistakes. (ii) The benefits or ‘bundle of satisfactions’ that it delivers to the buyer and. You need to make sure all your employees understand how they fit into the strategic plan and how the work they do contributes to it. That is, what the organization wanted from employees. Strategic planning is ultimately driven by the marketing perception of the strategist as to how and why customers behave as they do and how they are likely to respond to various elements of the marketing mix. The weakness could be that the departments of the organisation are unable to work as a team. For example; for the polyester and fibre manufacturer Indo Rama, the threats it could face are: (i) Widespread dumping by polyester manufacturers in Korea, Taiwan and Indonesia. the senior executives of an airline might travel at the back of the plane  to get a feel for what economy passengers experience.

Once this has been done, it then becomes possible to begin the process of developing strategies that are to be used to achieve the agreed objectives.
Likewise the organisation must detail the threats faced. That’s for so called “second-tier” accounting firms. It starts with a “vision” statement, moves on to “strategic themes” (six in all) and culminates in 28 “strategic goals.” The latter is a list of actions interspersed with a sprinkling of desired results, all utterly useless in terms of strategy.

Drill Down to Department Level Objectives. He owns it. Tap them in designing strategy. # 25641-1), Colorado (Lic. Many large companies have several businesses which businesses can be defined in terms of customers, product, market and technology. You cannot set an effective plan for your business unless you truly understand what you are up against from an industry and competition perspective. To analyse the present position and growth potential of these units, two of the best known business portfolio evaluation models are available. Dogs are those businesses that have a weak market share in a low-growth market. The strategic planning process is broader—it helps you create a roadmap for which strategic objectives you should put effort into achieving and which initiatives will be less helpful to the business. The process was developed for office reproduction (i.e., photo copying) and offered to many large and good companies, who turned it down saying it was too risky and too expensive to develop. The strategists must develop understanding, a commitment and skill to deal proactively with new situations. The HR team and senior management would bend over backwards to identify what would satisfy staff. The three major elements of a marketing audit are: (i) The analysis of the external environment and internal situation. In the majority of markets, buyers differ enormously in terms of their buying dynamics. The aim here is to determine the market potential for own products in terms of needs that are not being fully satisfied. In developing the communications plan, the marketing planner needs to begin by recognising that the various tools of communication such as sales promotion, advertising, public relations and so on cannot be looked at and managed in isolation. (iv) Objectives have internal consistency. (iii) The marketing support services such as delivery, installation and after-sales service. The complimentary opportunity will change the structure of the business. They’re stakeholder-focused, no-stone-unturned companies that defy expectations in their ability to pull together a diverse population of employees to produce amazing results. Reality sets in. (iv) High taxes, inhibiting demand growth. The strategic planning process steps are outlined below. The customer needs that will be met and. To ensure performance, you need to hold regular formal reviews and refine accordingly. Similarly, the level of customer satisfaction (which will be affected by the efficiency of distribution) will affect the placing of repeat orders. In developing a product strategy recognition needs to be given to the three interrelated elements of the product: (i) The product physical attributes including its performance, style and quality. It’s more like a dog chasing its tail. Stars are those products which have moved to the position of leadership in a high growth market.

In the customer analysis, the planner has to examine the following details of the customer: i.

Your goals are the specific outcomes you are trying to achieve. Here is the six-step process that represents the flow of strategic thinking and creation of a strategic planning framework: These six steps might be different based on the approach. Once you know where you are heading, at the 30,000 foot view, and what you are up against from an industry and competition perspective, now you are in a position to start drilling down into specific business goals that will enable  you to achieve that vision. ITC lifestyle retailing (Wills Sport), iii. It’s essential that you know how each stakeholder group thinks about these — that you focus on their point of view, not your own. The champion has to be the program manager monitoring progress, providing resources, making adjustments and publishing results to keep the plan alive and moving towards its goals! For example, these might include the factors influencing the decision to purchase from you (customers), work for you (employees), supply to you (suppliers) or invest in you (shareholders). Hence, the strategist needs to categorise buyers on the basis of both micro and macro variables. Strategy design, your fifth step, involves deciding what your organization’s positions will be on the identified strategic factors for each key stakeholder group. Because at the end of the day, if all managers are not 100% on-board with the resulting strategic plan, it will not be achieved.

Assess Industry, Competitor & Customer Trends. Long lasting success […] Mistakes early on in your strategic plan can have major negative impacts and consequences later. The best use of resources to advance the plan may shift. iv. Competitive analysis can be defined as a set of activities which examines the comparative position of competing enterprises within a given strategic sector. Report a Violation, Strategic Planning : Concept and Process | Business Management, 3 Micro Variables Used for Segmentation of Industrial Market. However, much like using GPS Navigation, you have to enter your destination.

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