Strategic Planning Wissam AL Hussaini
Strategic Planning
Wissam AlHussaini, PhD
!
Outline
! What is Strategy?
! Strategic Planning Process
! Environment Analysis
! Setting Objectives
Thinking Strategically:
The Three Big Strategic Questions
1. What’s the organization’s present situation?
2. Where does the organization need to go from here?
2.
Markets to be in
! Stakeholders’ needs and groups to serve
! Direction to head
3.
How should it get there?
! An organization’s answer to
will we get there?
how is its strategy
Strategy: Classic Definition
" ..the determination of the basic long-term goals and the objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals."
(Chandler, 1962)
Choosing the “Hows” of
Strategy
! Strategic choices about “how” are based on
!
Trial-and-error organizational learning about what has worked and what has not worked
!
Management’s appetite for taking risks
!
Managerial analysis and strategic thinking about how best to proceed, given market conditions and a company s circumstances
! In choosing a strategy, management is in effect saying,
Among all the many different ways of competing we could have chosen, we have decided to employ this combination of competitive and operating approaches to move the company in the intended direction, strengthen its market position and competitiveness, and boost performance.
Strategy and the Quest for
Competitive Advantage
! The heart and soul of any strategy are actions a
company makes to
! Improve its financial performance,
! Strengthen its competitive position, and
! Gain a competitive advantage over rivals
1-7
Tests of a Winning Strategy
! GOODNESS OF FIT TEST
! How well does the strategy fit
the association’s external and internal situation?
! COMPETITIVE ADVANTAGE TEST
! Is the strategy helping the association achieve a sustainable
competitive advantage?
! PERFORMANCE TEST
! Is the strategy resulting in
Wissam AlHussaini, PhD
!
Outline
! What is Strategy?
! Strategic Planning Process
! Environment Analysis
! Setting Objectives
Thinking Strategically:
The Three Big Strategic Questions
1. What’s the organization’s present situation?
2. Where does the organization need to go from here?
2.
Markets to be in
! Stakeholders’ needs and groups to serve
! Direction to head
3.
How should it get there?
! An organization’s answer to
will we get there?
how is its strategy
Strategy: Classic Definition
" ..the determination of the basic long-term goals and the objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals."
(Chandler, 1962)
Choosing the “Hows” of
Strategy
! Strategic choices about “how” are based on
!
Trial-and-error organizational learning about what has worked and what has not worked
!
Management’s appetite for taking risks
!
Managerial analysis and strategic thinking about how best to proceed, given market conditions and a company s circumstances
! In choosing a strategy, management is in effect saying,
Among all the many different ways of competing we could have chosen, we have decided to employ this combination of competitive and operating approaches to move the company in the intended direction, strengthen its market position and competitiveness, and boost performance.
Strategy and the Quest for
Competitive Advantage
! The heart and soul of any strategy are actions a
company makes to
! Improve its financial performance,
! Strengthen its competitive position, and
! Gain a competitive advantage over rivals
1-7
Tests of a Winning Strategy
! GOODNESS OF FIT TEST
! How well does the strategy fit
the association’s external and internal situation?
! COMPETITIVE ADVANTAGE TEST
! Is the strategy helping the association achieve a sustainable
competitive advantage?
! PERFORMANCE TEST
! Is the strategy resulting in