Strategic Planning A Strategic plan involves a six step sequential process. 1.Formulating mission statement 2.Complete environmental analysis 3.Performing a competitive analysis 4.Analyzing strategic alternatives 5.Setting goals and strategies 6.Setting up a control system

1. Mission Statement It provides direction for the company by answering the question of “What business are we really in?” It identifies the purpose, scope and direction of your business It is the foundation for writing your goals and objectives for the business Provides the commitment level for people

2. Environmental Analysis Also called the SWOT analysis Stands for strengths, weakness, opportunities and threats a business faced. Strengths and weaknesses are internal and so are controllable Threats and opportunities are external so not controllable

3. External Analysis External factors come from the economy, legal or regulatory areas, sociocultural, technological and competitive. Any of these factors can either offer an opportunity or a threat.

4. Competitive Analysis Two sides – competitors weaknesses and you competitive advantage Weakness of competitor – their vulnerable part and how you can use it Your advantage – do something better than anyone else and be able to sustain that to stay ahead Improve by positioning your product in the consumers minds

5. Strategic Alternatives Once SWOT and competitive analysis are done you are ready for next step Has a problem been revealed? What do you need to do to correct it – make sure that all alternatives are examined and use creative and problem solving skills to maximum advantage

6. Goal Setting and Strategies Mission statement leads to goals and then leads to strategies Goals should be: 1.Specific 2.Measurable 3.Time based

Types of Goals Mission statement says who your are, what business you and in and why Business –level goal – overall business goals to achieve your mission Functional-level goals – performance for an area to help achieve the business goals Strategy is a plan of action that detail how you will attain you function-level goals

7. Control Systems Your strategic plan is a set of standards that you use to compare your business’ performance for each year The control system lets you review what happened and then start the planning for the next year Written notes support this planning process

Strategic Plans Strategic plans are not business plans where you are seeking money Rather a strategic plan is a tool to look at your business under a microscope to examine the good, the bad and the ugly It protects you and prepares you for the marketplace to help you survive