1. Strategic planning and strategy development
FiNET
Associates
Strategic planning and strategy development
Strategic Management
Kenny Tay FCCA FCMA CGMA
March 2016
Strategy planning and development 2016

2. Strategic planning – situation analysis Strategy implementation
Part A
Strategic management
Definition of strategic management
Scope and depth of strategic management
Strategy and outcome
Part B
Strategic planning – situation analysis
Corporate goals and mission
The business model and its offering
Environmental assessment
PEST and environmental assessment
Competition and market leadership
Part C
Strategy implementation
SWOT analysis and core competency
Delivery capabilities and constraints
Resources requirements
Outcome of strategy implementation
Performance evaluation and feedback

3. Strategic management Definition of strategic management
Scope and depth of strategic management
Strategy and outcome
Strategy planning and development 2016

4. Strategy planning and development 2016
Strategic management
Strategic management is the process of managing limited resources to achieve stakeholders’ objectives under changing circumstances.
Strategic management contrasts with everyday management processes –
Getting materials and manpower
Scheduling production and output
Making sales deliveries
Strategy planning and development 2016

5. Strategy planning and development 2016
Strategic management
Strategic management vs. general management
Objectives of stakeholders
Changing circumstances
Limited resources
Strategy planning and development 2016

6. Strategy planning and development 2016
Strategic management
Basic issues involving strategic management –
Maximizing output from limited resources
Preventing potential loss of markets and customers
Ensuring market reach of new products and services
Strategy planning and development 2016

7. Strategy planning and development 2016
Strategic management
Everyday management
Strategic management
Planning
Organizing
Execution
Directing
Controlling
Issues driven
Contextual
Problem solving
The Difference
Strategy planning and development 2016

8. Strategy planning and development 2016
Strategic management
Strategy
To resolve environmental issues
To overcome resource limitations
Outcome
Achieving approved objectives
Minimizing deviations from plans
Strategy planning and development 2016

9. Strategic planning Corporate goals and mission
The business model and its offering
Environmental scanning
Evaluating and selecting the options
Strategy planning and development 2016

10. Strategic planning process
Steps
Revisit the corporate vision and mission
Business model review
Environmental scanning
Strategy planning and development 2016

11. Strategy planning and development 2016
The Coca Cola Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
Strategy planning and development 2016

12. Strategy planning and development 2016
The Coca Cola Mission
Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions..
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.
Strategy planning and development 2016

13. Strategy planning and development 2016
Your organization…
Vision
Mission
Does a company necessarily need a Vision and Mission? …………………………………………
Strategy planning and development 2016

14. Business model review
A business model thus describes the rationale of how an organization creates, delivers, and captures value for its stakeholders –
Customers
Shareholders
Financiers
Employees
Review of its relevance in a changing environment
Strategy planning and development 2016

15. Strategy planning and development 2016
Your organization …
Whether the Business Model is still
Relevant in the current environment
Appropriate for the company’s mission
Able to create and capture value for its stakeholders
Strategy planning and development 2016

16. Environmental scanning
Before strategy decisions
Strategy planning and development 2016

17. Market and competitor analysis
An assessment of –
Economic cycles
Product demand cycle
Competitive forces and responses
PEST conditions
Strategy planning and development 2016

18. Economic cycle analysis
Assessment
Sales
Profit
Cash flow
Investment
Competition
D A B C D
Strategy planning and development 2016

19. Strategy planning and development 2016
Product demand cycle
Assessment
Sales
Profits
Cash flow
Investment
Competitors
Strategy planning and development 2016

20. Strategy planning and development 2016
The BCG matrix
Growth vs. share
Product 1
Product 2
Product 3
Market Growth
High
Low
Problem kid
Blue
sky
Dogs or slog?
Cash cow
Small Large
Market share
Strategy planning and development 2016

21. Competition and responses
Pressure
New comers
Existing rivalry
Suppliers
Buyers
New products
Strategy planning and development 2016

22. Competitive strategies
How competitors respond – strategic options
Cost leadership __________________
Differentiation __________________
Focus strategy __________________
Your company’s strategy option?
Strategy planning and development 2016

23. Potential threats to the business
The PEST assessment
RISK assessment
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGY
Potential threats to the business
Strategy planning and development 2016

24. Strategy planning and development 2016
Your organization …
Political – change of government and rules
Economic – the next recession
Social – e.g. demographics, religion and education
Technology – solar power, e – commerce, multilevel marketing
Strategy planning and development 2016

25. Evaluating strategy options
Apply tools
Risk analysis
SWOT
Breakeven analysis
Decision trees
Cost benefit assessment
Discounted cash flow analysis
Sensitivity testing
Scenario analysis
Using financial assessment tools
Strategy planning and development 2016

26. Strategy development exercise
Your company is a diversified business organization and has signed a sole distributorship agreement with a Brazilian automobile manufacturer for an entry level sports car into the domestic executive market. The franchise agreement requires an investment commitment of USD 5 million and would be renewable at the end of 5 years. The target market price on the road is the local currency equivalent of USD40000.
Outline an appropriate strategy and the key considerations for this investment to be successful.
Strategy planning and development 2016

27. Strategy implementation
SWOT analysis and core competency
Delivery capabilities and constraints
Resources requirements
Outcome of strategy implementation
Performance evaluation and feedback
Strategy planning and development 2016

28. Implementing the strategy
Developing strategies and creating strategic plans is an easy part.
Without careful consideration on implementation, strategy planning is wasteful and demotivating.
It is therefore essential to recognize implementation of strategy as a crucial part of overall strategic management.
Strategy planning and development 2016

29. Organizational competency
SWOT of the organization – a recognition
Strengths
Weaknesses
Opportunities
Threats
Strategy planning and development 2016

30. Delivery capabilities and constraints
Organization and controls
Making process change
Resource availability –
Finance
People and skills
Business process re-engineering
Strategy planning and development 2016

31. Organization for execution 1
Selected strategies will be executed with
Organization configuration & functions e.g.
Departmental
Divisional
Transnational
Project or
Team
Strategy planning and development 2016

32. Organization for execution 2
Work processes are required for delivery of service or production
Market processes
Deal with contractors & suppliers
Cultural of collaboration
Managing relationships
Control processes
Input - planning, supervision, cultural change
Output - performance targets
Relationships – centralization vs. decentralization
Strategy planning and development 2016

33. Strategy planning and development 2016
Process change 1
Process change may be required for
Greater customer satisfaction
Minimizing resources and wastage
Error minimization
Faster delivery
Existing processes may no longer be suited in a changing market environment
Delivery &
Quality
performance
Strategy planning and development 2016

34. Strategy planning and development 2016
Process change 2
Basic steps
Clarify business vision and process objective
Identify processes to be redesigned or improved
Analyse existing processes for their effectiveness
Identify change levers – e.g. IT capabilities, people, process
Design proto type for testing and adoption
Strategy planning and development 2016

35. Business process re engineering
Process re-design requires
Zero base – or starting from scratch
simplification – eliminate redundant elements
Value adding – non value add work to be avoided
Close gaps & disconnects at department boundaries
BPR is about achieving –
Lower costs
Faster delivery
Error free
Maximum customer satisfaction
Concept of quality
Strategy planning and development 2016

36. Resource availability – finance
Managing value and the ROI - financial decisions
Investment
Financing
Dividends
Managing budgets and forecasts
Resource allocation for the KRA and KPI achievements
Managing performance
Strategy planning and development 2016

37. Resource availability – people
Leadership – leading teams
Visioning
Build teams
Resolving conflicts
Managing performance
Job design and staff development
Task goals and benchmarks
Job enrichment and skills retention
Succession planning
Strategy planning and development 2016

38. @ strategy implementation
Managing change
@ strategy implementation
Strategy planning and development 2016

39. Strategy planning and development 2016
Managing change 1
A new strategy instigates change
Changes may occur at different levels
Corporate
Project
Department
Operational
Activity
Prepare for change – how?
Corporate
Project
Department
Operational
Activity
Strategy planning and development 2016

40. Strategy planning and development 2016
Managing change 2
Changes are sometime not welcome
Managing resistance
Inconvenience
Fear of unknown
Lack understanding
Role of dynamic leadership – winning over people
Strategy planning and development 2016

41. Key points in strategy development
Your strategy tells you how you'll achieve success, no matter how that success is defined. And whether you're developing a strategy at the personal, team or organizational level, the process is as important as the outcome.
Identify your unique capabilities, and understand how to use these to your advantage while minimizing threats. The process and tools identified above will help you identify a variety of potential strategies for success, so that you can ultimately choose the one that's right for you.
And prepare to change – new strategy means CHANGE!
Strategy planning and development 2016

42. Strategy planning and development
Questions and answers
March 2016
Kuala Lumpur
Strategy planning and development 2016

43. Kenny Tay FCCA FCMA CGMA Kuala Lumpur
Thank you!
Kenny Tay FCCA FCMA CGMA
Kuala Lumpur
Strategy planning and development 2016