1. Financed bySupported byImplemented in cooperation with Strategic Planning

2. Financed bySupported byImplemented in cooperation with Introduction to strategic planning Conducting strategic planning Preparation for Strategic Planning Useful Skills to Have When Strategic Planning Vision, mission and values statements Strategic Analysis Forecasting –tools and methods Setting Strategic Evaluating and selecting strategic alternatives Writing and Communicating the Plan Outline

3. Financed bySupported byImplemented in cooperation with Strategic Leaders Strategic management process Introduction Strategy Formulation (planning) Strategy Implementation Control of implementation (evaluation and monitoring)

4. Financed bySupported byImplemented in cooperation with Process to determine: Where are we now? Where do we want to be? How are we going to get there? How will we know if we got there? A strategic plan is a document and result of the formal strategic planning phase. Strategic Planning

5. Financed bySupported byImplemented in cooperation with Defining the organizations purposeEstablishing realistic goals and objectivesCommunicating these goalsFocusing the organizations resources on key prioritiesDefining baseline measurementsBuilding consensusProvide clearer focusBuild strong teams of employeesIncrease productivitySolve major problemsDevelop a sense of ownership of the plan Why strategic planning?

6. Financed bySupported byImplemented in cooperation with When an organization is getting started, as part of the business plan, along with marketing, financial and operational plans In preparation for a major new investment (for example: developing a new department or line of products) At least once a year in time to identify organizational goals to be achieved next year. When an organization is getting started, as part of the business plan, along with marketing, financial and operational plans In preparation for a major new investment (for example: developing a new department or line of products) At least once a year in time to identify organizational goals to be achieved next year. When should strategic planning be done? * During the implementation the progress should be reviewed frequently and regularly. * There is no one model that fits all, so the elected approach will depend on the context of the organization.

7. Financed bySupported byImplemented in cooperation with Vision-Based (Goal-Based) Strategic Planning Issues-Based Planning Alignment Model Scenario Planning Real-Time Planning *can be used individually or in combination Types of Strategic Planning

8. Financed bySupported byImplemented in cooperation with 1 Identify your purpose (mission statement) 2 Establish a vision statements 3 Select the goals your organization must reach 4 Identify specific approaches 5 Identify specific action plans to implement each strategy 6 Compile the mission, vision, strategies, and action plans in a Strategic Plan Document 7 Monitor the implementation of the Plan and update as needed Vision Based - steps

9. Financed bySupported byImplemented in cooperation with 1 Identify the current, major issues facing the organization 2 Brainstorm ideas to address each major issue 3 Compile the issues and ideas into a Strategic Plan Document 4 Monitor the implementation of the Plan and update as needed. Issues Based

10. Financed bySupported byImplemented in cooperation with 1 Outline the organization’s mission, programs, resources, and needed support 2 Identify what is working and what needs adjustment 3 Identify how these adjustments should be made 4 Include the adjustments as strategies in the strategic plan Alignment Model

11. Financed bySupported byImplemented in cooperation with 1 Select several external factors and imagine related changes, which might influence the organization 2 For each change in a force discuss three different future organizational scenarios (best, worst, and ok cases) 3 Suggest what the organization might do in each of these three scenarios 4 Detect common strategies which could be addressed 5 Select the most likely external changes and identify the most reasonable strategies the organization could take to respond. Scenario Planning

12. Financed bySupported byImplemented in cooperation with Plan for a Plan Are we really ready for strategic planning? Who is doing the planning? Why are you doing strategic planning? What is the scope of our plan? What planning model should we use? How might the model be implemented? What is your schedule for developing the plan? Who will be involved? How? When? Will you need an outside facilitator? What materials will be needed? What terms/titles will you use? Will you need to train the planner and if yes how? How will you get buy-in of members of the organization? How will you ensure implementation of the plan? How will you change the plan as needed?

13. Financed bySupported byImplemented in cooperation with Creative Thinking Decision Making Problem Solving Meeting Management Facilitating in Face-to-Face Groups Group-Based Problem Solving and Decision Making Conflict Management in Groups Skills for Strategic Planning

14. Financed bySupported byImplemented in cooperation with Vision: a compelling description either of where the organization will be after implementing its strategic plan or as an idealistic picture of the more general future Vision, Mission, and Values Statements Mission: what is the organization’s role in achieving the future outlined in the vision statement, should include Whom does the organization serve Which customer needs does it seek to satisfy What does it do to satisfy that need? Mission: what is the organization’s role in achieving the future outlined in the vision statement, should include Whom does the organization serve Which customer needs does it seek to satisfy What does it do to satisfy that need? Values: Core of the organization’s culture, which should drive behavior of employees and management

15. Financed bySupported byImplemented in cooperation with (B)PEST(LE) Porters’ five forces analysis External analysis Boston Consulting Group Portfolio Matrix McKinsey/ General Electric Portfolio Matrix Functional Analysis Porters value chain Internal analysis SWOT analysis Stakeholders analysis Combined Strategic Analysis

16. Financed bySupported byImplemented in cooperation with what degree does the government intervene in the economy or the goods and services the government wants to supply or not. Political factors- economic growth, interest/ exchange/inflation rates Economic Factors: cultural aspects - trends in social factors have an affect on the demand for certain products. Social Factors: technological aspects such as R&D activity may determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Technological Factors: PEST Analysis

17. Financed bySupported byImplemented in cooperation with Expansion of the PEST analysis discrimination laws, consumer laws, anti-trust, these laws may affect how a company operates and the costs. Legal factors ecological and environmental aspects (especially those impacting tourism or farming) Environment Factors Demographic Regulatory Other factors: PESTLE Analysis

18. Financed bySupported byImplemented in cooperation with Tool for understanding the dynamics of the industry What are the drivers for competitors Porter 5 Forces Analysis Threat of new entrants Threat of substitute products/ services Bargaining power of customers Bargaining power of suppliers Intensity of competitive rivalry

19. Financed bySupported byImplemented in cooperation with Profitable markets will attract new entrants, increasing the number of competitors thus decreasing the profitability of all competitors in the industry– thus companies will have to pay attention to new entrants If a company is new they should expect counter actions and design strategies to address this. 1. Threat of New Entrants

20. Financed bySupported byImplemented in cooperation with Referring to both products/services from another company and products that satisfy the same customer need, which doesn’t need to come from the same industry. Factors influencing customers to substitute products are: level of product propensity to substitute, price for value ratio of substitute, switching costs, level of product differentiation, number of substitute products available in the market, the ease of substitution. 2. Threat of Substitute Products or Services

21. Financed bySupported byImplemented in cooperation with Ability of customers to condition the company. Based on how relevant the individual buyer is to the company Customer buying power is strong if: customers are concentrated or buy large amounts of the product, if the products are standardized or non-differentiated, low switching costs for choosing an alternate product, the buyer has numerous alternatives, the buyer is price sensitive 3. Bargaining Power of Customers

22. Financed bySupported byImplemented in cooperation with Suppliers may be a source of power when: there are few substitutes, supplier switching costs are high, there is a high degree of inputs, there is a high impact of inputs on costs or differentiation, low presence of substitutes, there is significantly more buyers than suppliers 4. Bargaining Power of Suppliers

23. Financed bySupported byImplemented in cooperation with Intensity is higher if: the competitors are numerous and/or relatively equal, there is weak economic growth, there are high fixed costs, there is a lack of differentiation or switching costs are low, there are high exit barriers. 5. Intensity of Competitive Rivalry

24. Financed bySupported byImplemented in cooperation with Stakeholders: individuals and structures within the organization and individuals and organizations in its environment that have an influence on the organization Stakeholders Analysis STEPS Identify and classify the stakeholdersDetermine and analyze stakeholders interestDetermine and analyze stakeholders potential influence Define priorities – by selecting stakeholders with highest influence on the strategy implementation Determine ways of getting priority stakeholders on board for implementation of the strategy.

25. Financed bySupported byImplemented in cooperation with How well do the different aspects of the organization serve the strategy implementation. ‘Alignment’ Internal Analysis of the Organization Tools for internal analysis Boston Consulting Group Portfolio Matrix McKinsey/ General Electric Portfolio Matrix Functional Analysis Porters value chain Tools for internal analysis Boston Consulting Group Portfolio Matrix McKinsey/ General Electric Portfolio Matrix Functional Analysis Porters value chain

26. Financed bySupported byImplemented in cooperation with Porters value chain model

27. Financed bySupported byImplemented in cooperation with Delphi Method Scenario Method Simulation Method. Extrapolation of Trend Regression Analysis Brainstorming Sensitivity Analysis Forecasting- Tools and Methods

28. Financed bySupported byImplemented in cooperation with Setting Strategic Direction

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31. Financed bySupported byImplemented in cooperation with General strategic direction - survival and development Business strategy covers what the company produces, for whom, and how it creates a competitive advantage? Two basic strategies: Portfolio strategy Competitive strategy Besides a business strategy a company should also have Administrative and Operational plans Basic requirements for success: long-term organizational objectives must have an upper hand on short-term, organizational level objectives must have an upper hand on the objectives of the organizational parts. Defining Possible Strategies

32. Financed bySupported byImplemented in cooperation with = Determine volume and direction of future business of the company. Portfolio strategy MARKET PRODUCT EXISTINGNEW EXISTIN G Market penetration - existing market with the existing products Product development - existing market with new products NEW Market development - new market with the existing products Diversification - new market with new products

33. Financed bySupported byImplemented in cooperation with producing with lower cost that the competitors Cost leadership of products and services on account of image, characteristics, technologies and sales methods, servicing... Differentiation on specific market or group of consumers within the market (niche strategy) Focus Competitive strategy

34. Financed bySupported byImplemented in cooperation with 1 Defining strategic alternatives 2 Defining objectives in accordance with which the strategic alternative should be evaluated 3 Estimating and valuating impact of each strategic alternative on objectives 4 Comparing results of valuation and selecting strategic alternatives Evaluating and Selecting Alternatives

35. Financed bySupported byImplemented in cooperation with Body of the Strategic Development Plan: Executive Summary Organizational Description Mission, Vision and Values Statements Goals and Strategies Writing and Communicating the Plan

36. Financed bySupported byImplemented in cooperation with Situational Analysis Data Budget Planning Action and/or operating plan Financial Reports Monitoring and Evaluation of Plan Provisional Elements and/or Appendices: