STRATEGIC PLANNING

• Formal Planning


  Usually divided into two major types: Strategic Planning and Operational Planning
• Strategic Planning


  1. Understand the venture

  2. Establish long range and short range objectives

  3. Outline alternative courses of action

  4. Implement a plan of action

  5. Analyze the results and take follow up action
• Entrepreneurial vision and ideas

  Transformed into action through planning process
• Steps in planning process

  • Commitment to an open planning process
  • Accountability to a corporate conscience
  • Establishment of a pattern of subordinate participation in the development of the strategic plan
• Commitment to an open planning process


  Many entrepreneurs are suspicious of planning, fear loss of control and flexibility
• Accountability to a corporate conscience


  Often takes the form of an advisory board
• Subordinate participation in strategic plan development

  Can create organizational energy
• Reasons for lack of strategic planning

  • Time Scarcity
  • Lack of Knowledge
  • Lack of Expertise
  • Lack of Trust and Openness
• Approaches to implementing a strategic plan

  • Opportunity management approach
  • Milestone planning approach
  • Strategic model approach
• Opportunity management approach


  1. Construct strategic profile

  2. Evaluate internal resources

  3. Forecast external market conditions

  4. Evaluate company strengths and weaknesses

  5. Formulate business objectives
• Milestone planning approach

  1. Use incremental goal attainment

  2. Complete each important step before moving on

  3. Link steps into overall strategic plan
• Milestone planning approach

  • Use of logical and practical milestones
  • Avoidance of costly mistakes
  • Methodology for re-planning based on continuous feedback
• Strategic model approach


  Normative approach recommended by strategy experts
• Strategic model approach

  1. The Decision to Plan

  2. Situational Analysis

  3. Personal and Company Objectives

  4. Issue Specification

  5. Option Generation

  6. Evaluation and Selection

  7. Implementation

  8. Control and Feedback Loop
• Operational Planning


  Also referred to as short range planning or functional planning, consists of strategic practices to carry out objectives set in strategic plan