Strategy is the plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals. Strategic management is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.
The characteristics of a strategic decision are:
- Is broad in scope
- Has far-reaching consequences
- Is crucial to future survival and growth
- Usually entails a substantial commitment of organizational resources
- Is difficult to reverse
Because of these characteristics, strategic decisions cannot be left to chance or “gut feel.” The consequences can be severe. Strategic management has to start with a data-based assessment of the external environmental trends to identify the opportunities and threats that are emerging and will have impact on the firm and its industry. Then there has to be a factual appraisal of the firm’s capabilities and limitations, or in other words, its strengths and weaknesses. These assessments will lead to an identification of strategic options, which need to be evaluated. After the optimal strategy mix has been selected, plans must be made for the successful implementation of such strategies.
This is an overview course on the basic process of how to do strategic planning, whether the organization is in manufacturing, service, or not-for-profit.
At the end of this course, the participants will have been able to:
1. Scan the external business environment to identify potential threats and opportunities that may impact on the organization
2. Appraise the internal strengths and weaknesses of the organization
3. Based on a synthesis of strengths, weaknesses, opportunities, and threats, identify key strategies for gaining sustainable competitive advantage
4. Evaluate these strategies to select those that are feasible and have a high probability of success
5. Translate these objectives into measures, targets, projects, and programs
Who Should be Involved in the Process?
To be effective, strategic planning has to be done from a total systems perspective, i.e., it involves all the key decision-makers in all operating and support units and departments. The CEO and all department heads must participate from beginning to end. It is a collaborative exercise where everyone sees the same information and all ideas are welcome. The reason is that an enterprise is a system composed of different units doing different work but which are all interrelated, i.e., each one affects the others. At the same time, the enterprise as a whole has to interact with the bigger environmental system that impacts on it.
I. The need for setting a cohesive organizational direction
C. Core values
D. Strategic goals
E. Tactical goals
F. Operational goals
G. The need for planning
H. The Pareto Principle
II. Strategic Management
A. Definition of and need for strategic management
B. What is strategy?
C. Characteristics of a strategic decision
III. Environmental Scanning
A. The impact of external environmental forces on the organization
B. The general environment
C. The industry-specific environment
1. Rivalry among existing competitors
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of new entrants
5. Threat of substitution
D. External forces impact directly on the organization but are beyond its control. They create:
3. The same force can be both a threat and an opportunity
E. An organizational can control only its response to these forces
F. The organization must anticipate the nature, location, timing, direction, and magnitude of the external environmental trends
IV. Internal Appraisal
A. Organizational response to external forces is dependent on its
1. Capabilities (strengths)
2. Limitations (weaknesses)
3. All organizations, large or small, have both strengths and weaknesses
4. Areas of appraisal
B. Strengths and weaknesses are dependent on
1. Core competence
2. Synergy (internal and with business partners)
3. These can be deliberately developed or created through managerial actions
C. Definition of core competence
D. Definition of synergy
V. SWOT Analysis
A. What is a SWOT Matrix?
C. Porter’s competitive strategies
2. Cost leadership
D. Product-market scope
1. Market penetration
2. Market development
3. Product development
VI. Development of Strategic Objectives
A. Translation of agreed critical-few strategies into specific, measurable, challenging, and time-bound targets or results to be achieved
1. Starting at the CEO’s level
2. Cascaded and made more detailed at successively lower levels
B. The basis for tactical and operating plans, programs, and projects
C. Need for “line of sight” alignment with the overall organizational strategic goals and with the strategies of other units
D. Responsibility and accountability for results at all levels are assigned to specific persons
E. Become a major basis for performance evaluation
Limited slots are available. Hurry! Join us now.
Regular Rate Php 1,499.00 + VAT starting September 17, 2020
Early Bird Rate Php 1,399.00 + VAT until September 16, 2020
Group Rate Php 1,299.00 + VAT per pax for 5 or more pax
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