Get into groups of 4-5 ( A total of 5 groups) Your group will be given a business scenario Come up with 5 Short-Term and 5 Long- Term goals for your given scenario We will discuss in 10 minutes
Strategic Planning Method for businesses ◦ Tells the businesses where they need to focus their efforts to improve sales/market share Businesses look at themselves (internal) ◦ Strengths – things that the business does better than the competition Ex – customer service, research & development ◦ Weaknesses – things that could be improved on within the business Poor Reputation, too few sales outlets
The business will then look to the outside world (external environment) ◦ Another acronym – PEST Politics, Economy, Social, Technology ◦ Competition Are there things that the competition is doing that could a positive or negative effect on our business
Opportunities ◦ external factors that could help a business achieve its objectives Examples: Loosening advertising restrictions, new technologies (Youtube a few years ago) Threats ◦ External factors that could damage or hinder a businesses’ performance Examples: A competitors release of a new product, societal trends (healthy food)
Strengths Very competitive company – a healthy dislike for their competition Research & Technology – are often first to market with new athletic gear technology Eg. Nike Shocks, Dry fit, etc Global Brand – recognized world wide Association with the world’s best atheletes Michael Jordan, Tiger Woods, Derek Jeter, Ronaldino, Sydney Crosby, LeBron James, Roger Federer
Weaknesses Majority of the companies revenues come from shoes ◦ Company would take a large hit if the industry went into decline Retail stores try to force a lower price of products ◦ Nike has a lack of its own stores Reputation ◦ Nike still is experiencing an effect of child labour rumours from the 90’s
Threats Exposed to the risks that go with international trade ◦ The American Dollar, tariffs, etc Athletic brands (especially shoes) are increasing as the years go on – competition is fierce Recession ◦ Consumers are searching for the lowest price possible ◦ Nike is a premium brand – so consumers will start shifting towards lower priced brands
Opportunities Nike a fashion brand? ◦ Thus far, Nike has concentrated on purely athletics ◦ Social trends have shown that owning Nike products is making a fashion statement Emerging Markets ◦ Nike can take advantage of its global brand awareness in growing economies i.e. China The health conscious consumer ◦ Can market to consumers – advertise the benefit of exercise
SWOTSWOT
Must be realistic with yourself Use it for planning – not day to day operations Make it as specific as possible Always in relation to your competition ◦ Not other industries Keep it simple Be aware: IT`S SUBJECTIVE!
You are going to do a SWOT analysis for yourself Think about yourself as an enterprising person ◦ What do you do well? What are your weaknesses? What chances do you have to be unique? What obsticles do you face in becoming an entrepreneur? List 2 of each and write 2-3 sentences explaining your choices ◦ (this will help you with your assignment tomorrow)