How to Write a Strategic Management Plan by qsw37772

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									Strategic
Management
Dr. Hala Hattab
November 21-23
Venue
Course Introduction

 Welcome
 About Me

 About You (why you?)

 Why Strategy?

 Overview of Topics and Calendar

 Expectations

 Introduction of Concepts


2
Who are You?
Self Introduction
 Name
 Company

 Undergraduate Studies

 Work experience, if any

 What are you interested in?

 What do you hope to gain from this
  course?

3
Why You?

 You will be principals in firms
 You will have to decide what to do:
    What markets?
    What services?
    Where to dedicate your time?
    What kinds of people?
   You probably will be part of a team.


4
Why Strategy?

 It’s about how businesses compete.
 How to earn above average returns.

 Selection of industries

 Selection of segments

 Choice of tactics

 How to IMPLEMENT!




5
Overview of Topics and
Calendar
   Day 1
       Introduction to Strategic Planning and
        Management
       Why strategic management is important?
       Strategic Management: Key Concepts
       Strategic Planning for SMEs

   Day 2
       Design a business plan for your organization

   Day 3
       Design a business plan for your organization

6
Expectations for the
Course: You Will…

   Struggle with figuring out what to do

   Be prepared to participate in planning
    for your own firms

   Study real business situation

7
Introduction of Concepts

   Strategic Management: The set of
    managerial decisions and actions that
    determines the long-run performance
    of an organisation.

   Strategic Planning: The process of
    determining a company's long-term
    goals and then identifying the best
    approach for achieving those goals
8
Why is strategic management
important?

   Gives everyone a role
   Makes a difference in performance
    levels
   Provides systematic approach to
    uncertainties
   Coordinates and focuses employees


9
Basics of Strategic
Management
    Four aspects that set strategic
     management apart
        Interdisciplinary
          • Capstone of the Business degree
        External focus
          • Competition
      Internal focus
      Future direction

10
Strategic Management
Process




11
Strategic Management
Process
    Step 1: Identifying the organisation’s current mission,
     objectives, and strategies
       Mission: the firm’s reason for being
           • Who we are,
           • What we do, and
           • Where we are now
         Goals: the foundation for further planning
           • Measurable performance targets

    Step 2: Conducting an external analysis
       The environmental scanning of specific and general
        environments
       Focuses on identifying opportunities and threats



12
Strategic Management
Process (cont’d)
    Step 3: Conducting an internal analysis
        Assessing organisational resources,
         capabilities, activities and culture:
          • Strengths (core competencies) create value for
            the customer and strengthen the competitive
            position of the firm.
          • Weaknesses (things done poorly or not at all) can
            place the firm at a competitive disadvantage.

 Steps 2 and 3 combined are called a SWOT
     analysis (Strengths, Weaknesses,
         Opportunities, and Threats)

13
Strategic Management
Process (cont’d)
    Step 4: Formulating strategies
        Develop and evaluate strategic
         alternatives
        Select appropriate strategies for all levels
         in the organisation that provide relative
         advantage over competitors
        Match organisational strengths to
         environmental opportunities
        Correct weaknesses and guard against
         threats

14
Strategic Management
Process (cont’d)
    Step 5: Implementing strategies
        Implementation: effectively fitting
         organisational structure and activities to the
         environment
        Effective strategy implementation requires
         an organisational structure matched to its
         requirements.

    Step 6: Evaluating results
        How effective have strategies been?
        What adjustments, if any, are necessary?


15
     Levels of strategy




16
     End of part One



17
       Part Two:
     Business Plan


18
What is a BP ?
     A written document that
(1)   outlines an organization's overall
      direction, philosophy, and purpose
(2)   examines its current status in terms of
      its strengths, weakness, opportunities,
      and threats
(3)   sets long-term objectives, and
(4)   formulates short-term tactics to reach
      them.

19
The Strategic Mind behind
BP
    Focus the strategic parts of your plan
     related to:

         Time and Energy to attain goals (predefine
         what is to be achieved)
         Resource allocation (Count chickens before
         they hatch don’t take in too much. Promise
         what can be delivered)
         Your Business and Competition (Analyze
         your strengths and weakness)
         Employee communication (nice trick, don’t
         take the blame over you)
20
Extended Tricks

 Divide the work. Take The
  Correspondence.
 Editable BP – make BP in revisions as
  you go in depth, make it finalized when
  you are sure about zero loopholes
 Make another BP as a Plan 2, so that
  anytime you can seek in more resource
  (handy but a tough trick)
21
How to Draft a Simple BP
    Work on These lines:
         Vision of organisation
         Goal of future
         Clients, Users, Target market
         Edge of you / your team / company
         Barriers to achieve the target
         Better serve clients..how ??
         Ad more to target..possible ??
         Adding new customers / users / target market
         share
         Accountings
         Starting of the plan dates

22
In theory, there is no difference between
        theory and practice. But, in
             practice, there is."

        - Jan L.A. van de Snepscheut




23
              Simply Stated...
Make your points clearly and crisply.
             Style counts…

 Use  bulleted or enumerated
  points whenever possible.
 Leave a wide margin.

 Try to utilize meaningful graphs
  and diagrams throughout the
  entire plan

25
Basic Structure

 Executive Summary
 The Market
 The Product
 The Team
 The Strategy
 The Forecasts
 Appendices
Market Analysis

   It should be as useful for you as it is
    for the investor.
     Situation Analysis
     Market Opportunity
     Competitive Factors
     Technical Feasibility
     Risk/Reward Assessment
The Product

 Know when “less is more”
 Readability geared for layman

 Deep technical points can be reserved
  for an appendix

“Market Driven Engineering”
The Forecasts

 Let’s be realistic!
 4 year model

 Monthly detail only in years #1 and #2

 Drive data from “unit model”

 Use ordinal numbers for months

 Understand your DCF
Executive Summary

 This may be the only document that
  gets read; distill the most important
  points
 Write it after the rest of the document,
  but put it 1st
 Use same terminology, wording, and
  images
 Provide your sense of valuation and
  likely deal structure
Appendices

   Stuff you wanted to put in the plan
     Technical white-paper(s)
     More detailed financial analysis, DCF,
      etc.
     Additional competitive data
     Additional market data/published
      reports
     Articles about the company, product,
      market, team, etc…
          Concluding Remarks

   Impress the reader with the thoroughness of
    your understanding of the market.

   Make it understandable.

   Value white-space.

   Develop realistic, flexible financial forecasts

								
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