MGT 3200 Chapter : STRATEGIC PLANNING Outline Mat
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STRATEGIC PLANNING (CHAPTER SIX)
MGT 3200
I. FOCUS OF STRATEGIC PLANNING
• The focus of strategic planning is on maintaining a positive
relationship with the organization’s external environment
• A term “strategy” is just another name for an organization’s
grand plan
II. THE COMPONENTS OF STRATEGY
A. SCOPE – refers to the range of markets you want to do
business in; can go from narrow to wide
a. If you do business in only one market, scope is narrow
b. If you do business in many markets, scope is wide
B. RESOURCE DEPLOYMENT – how are we going to spend
resources to accomplish our goals
a. Example: Procter and Gamble
C. DISTINCTIVE COMPETENCE – competence is something
that your good at; so distinctive competence is something that
your good at that makes you unique and sets you a part from
your competitors (Competitive advantage)
D. SYNERGY – how the different aspects of business support one
another; Disney has synergy
III. THE LEVELS OF STRATEGY
A. CORPORATE – refers to what businesses do you want to own;
B. BUSINESS-LEVEL – it focuses on how do we want to
compete in a market/industry4
When a manager falls victim to the “crystal ball” syndrome what phase of
planning is emphasized?
1. Establishing Objectives
2. Developing Premises
3. Decision-Making
4. All of the above.
When a manager fails to work their plan, this manager is neglecting what
aspect of the planning process?
1. Establishing objectives
2. Developing premises
3. Implementing a course of action
4. Evaluating results
5. Both 3 and 4
The basic dilemma in planning is between
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1. Creativity and practicality
2. Effectiveness and efficiency
3. Top managers and 1st line managers
4. Commitment and flexibility
A company’s competitive advantage is synonymous with what component of
strategy?
1. Scope
2. Resource deployment
3. Distinctive competence
4. Synergy
IV. THE FOUR ELEMENTS OF STRATEGY FORMULATION
A. ANALYSIS OF THE ORGANIZATION’S MISSION
B. ANALYSIS OF THE EXTERNAL ENVIRONMENT
C. ANALYSIS OF THE INTERNAL ENVIRONMENT
D. ANALYSIS OF THE CORPORATE CULTURE
V. APPROACHES TO STRATEGY FORMULATION
A. THE BUSINESS PORTFOLIO MATRIX APPROACH TO
STRATEGY FORMULATION
• This approach to strategy formulation involves 2 levels of
strategy: corporate and business level
• The corporate strategy is to own that mix of businesses that
maximize market share and profitability
• The various business level strategies employed are
determined via the BCG matrix
HI
“NEW VENTURE” → ?
“STAR” – growth strategy
LO
“DOG”
LO
“CASH COW” – stable growth
strategy
HI
• Stars use a “growth” strategy
• Cash cows use a “Stable growth” strategy
Market
Share
Market
Growth
Document Summary
Focus of strategic planning: the focus of strategic planning is on maintaining a positive relationship with the organization"s external environment, a term strategy is just another name for an organization"s grand plan. Synergy how the different aspects of business support one another; disney has synergy. Corporate refers to what businesses do you want to own; Business-level it focuses on how do we want to compete in a market/industry4. When a manager falls victim to the crystal ball syndrome what phase of planning is emphasized: establishing objectives, developing premises, decision-making, all of the above. When a manager fails to work their plan, this manager is neglecting what aspect of the planning process: establishing objectives, developing premises, implementing a course of action, evaluating results, both 3 and 4. Page 2 of 6: creativity and practicality, effectiveness and efficiency, top managers and 1st line managers, commitment and flexibility.
