PLANNING (STRATEGIC, SWOT, RISK MANAGEMENT)

PLANNINGPLANNING It deals with: Set priorities and organize them Set priorities and organize them Allocate the time between activities Allocate the time between activities It is one of the most important keys to the success of a project It is one of the most important keys to the success of a project

Benefits of Planning It saves time through organization It motivates people to complete tasks It reduces the work to do It promotes the review and the analysis of time It reduces anxiety

The Process of Planning Define the activities of the project –Define, in addition, the goals Sequencing the activities –Define, furthermore, the times Estimate the durations –Estimate, in addition, the costs Develop the the Planning Check the Planning

STRATEGIC PLANNING

The Strategic Planning It is a set of activities (from the definition of the mission, to each operative choices) that allows to achieve the goals of the organization It plays a key role enduring the balance between short and long-term management logics.

Process of Strategic Planning The Environment Competitive Cooperative Economic Social Political Legal The Strategic Business Plan Information Implementation Mission Goals Strategies Activities Portfolio

The Strategic Planning The strategic planning process is carried out in the drafting of a document called "Strategic Plan" which consists of four components: 1. Mission 2. Goals 3. Strategies 4. Activities portfolio

Example of Mission Nokia VisionLife is mobility! MissionConnecting people Strategic Goal Becoming the leader of mobile communication in the digital convergence market

Examples of Goals ServicePossible Target 1. Presence on the MarketMake your brand the number one in terms of market share 2. InnovationBeing the first to introduce new products spending no less than 7% of sales in R&D 3. ProductivityManufacturing all products with efficiency, measuring the productivity of the workforce 4. Physical and Financial Resources Preserve and conserve all resources: equipment, real estate, commodities and funds 5. ProfitabilityRealize a ROI (or a ROE) not less than 15% 6. Management Performances Identify critical areas to the management function 7. Performances and attitudes of employees Maintaining levels of satisfaction of workers in line with those of company sector 8. Social ResponsibilityReacting appropriately to the expectations of society

Company Strategies Company Strategies are the logics of action that drive an organization towards achieving its objectives: They can be based on three different approaches: 1.Products/markets 2.Competitive advantage 3.Value The choice of approach and of its strategy is determined by the cohesion with the mission and must consider: 1.Enhancement of specific skills 2.Company resources 3.Capacity in the organization

Activities Portfolio Method used to determine the allocation of enterprise resources between different Strategic Activities of Business Among the portfolio models proposed there are two that have become points of reference: 1. Model BCG (Boston Consulting Group) 2. Model GE (General Electric)

Model BCG The Strategic Business activities are classified according to two dimensions: A) Relative Market Share (high, low); B) The growth rate of the market sector (high, low) A.Require resources for expansion and protection from entry of competitors B.Provide financial resources C.They can provide financial resources D.They require a lot of resources if you decide to bet on them High Market ShareLow Market Share High rate of growth A. ‘’Stars’’D. ‘’Question Marks’’ Low rate of growth B. ‘’Cash Cows’’C. ‘’Dogs’’

MODEL GE Zone A: development Zone B: maintenance Zone C: abandonment The ASA are inserted in a diagram in which their economic size is also represented Strong Competitiveness Middle Competitiveness Weak Competitiveness High Attractiveness A. B. Middle Attractiveness A.B.C. Low Attractiveness B.C. Sector Attractiveness Low Middle High Strong Middle Weak Business Unit Competitivity

SWOT ANALYSIS

What is the SWOT Analysis It is conducted on the strenght points (Strengths) and weakness points (Weaknesses) that differentiate the company from competitors, in order to bring out the ‘Opportunities’ and ‘Threats’ arising from the external environment, under which it is trying to interpret and predict the evolution of the market in which the company operates.

SWOT Analysis Scheme StrengthsWeaknesses OpportunitiesThreats

SWOT: Strengths and Weaknesses Experience and competence of the proposers Reference markets Technical and Productive Aspects Organizational Aspects Financial Aspects

SWOT: Threats and Opportunities Possibility of obsolete products Increasing of the competition Extremely risky market Changes taking place in the Market New Markets New Technologies Changes going on in the market and in society Possible strategic alliances

RISK MANAGEMENT

Phases of risk management methodologies The Risk management involves three steps: risk identification, risk assessment, risk treatment. It consists of two parts: - Decision-making on measures to be taken - Implementation

Risks Analysis There are two critical issues in this phase: 1.The identification and the recognition of the causes that can determine the happening of the event; 2.The difficulty of quantifying the frequency and seriousness of the risks R = F x M where: R = Risk, F = Frequency, M = Magnitude (seriousness of the consequences)

23 Scale for quantitative risks assessment ValueLevel Frequency Improbable Few probable Probable Highly probable Seriousness Light Medium Serious Extremely serious

24 Risks Matrix Frequency Highly Probable Probable Few Probable Improbable Light Medium Serious Extremely Serious Seriousness