STRATEGIC BUSINESS PLANNING

What is a strategy: Is it-------

A game plan, policy, action plan, tactics

A short term, a long term?

A qualitative or quantitative ?

A visible or an invisible?

Who should decide? Line or Staff?

“A flexible approach for achieving the desired results, with sustainable success”

 It is an approach

 It is Flexible

 Aims at achieving the desired goals

 Aims at sustainable success

Strategic decision-making framework

1. A firm operates in a complex economic environment

2. Strategy is the main theme to establish a match between the firm’s competitiveness and opportunities created by environmental changes.

3. A firm is a multi-directed; a strategy is a link between the multiple goals of the firm and its policies and plans.

4. The most important components of a strategy are, product-market scope, competitive advantages, distinctive competences and synergy.

5. The desirable strategy is ‘market dominance’ especially during growth stage.

6. The firm should have a balanced portfolio of businesses.

Strategic Planning Process

The strategic planning process for a business begins with trying to obtain answers to three chronologically ordered simple questions. They are:

(1) Where are we now? (Ans: SWOT analysis)

(2) Where do we want to be in 3 to years’ time?

Portfolio Grid Matrix Analysis Approach: Boston Consulting Group’s “Boston Box’ – (Dogs, Cash-cows, Stars, land “question marks”)

Market Growth