corporate strategic planning part 1

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CORPORATE Business entities which are independent of their owners and recognize by registration.:

CORPORATE Business entities which are independent of their owners and recognize by registration.

STRATEGY An overall long term direction which a company aims to follow.:

STRATEGY An overall long term direction which a company aims to follow.

STRATEGIC PLANNING Long term planning dealing with organisational primary goals &objectives.:

STRATEGIC PLANNING Long term planning dealing with organisational primary goals &objectives.

CORPORATE STRATEGIC PLANNING Long term planning for the organisation as a whole, carried out by top management.:

CORPORATE STRATEGIC PLANNING Long term planning for the organisation as a whole, carried out by top management.

Introduction to corporate strategy:

Introduction to corporate strategy Corporate strategy is growth design of firm. Corporate strategy design for filling the firm’s strategic planning gap. Corporate strategy concerns with choice and change in products and markets. Corporate strategy ensures the right fit is achieved between the firm and its environment.

Evolution of strategic planning 1. Mass production stage 2. Phase of major environmental changes 3. Still faster changes in environment:

Evolution of strategic planning 1. Mass production stage 2. Phase of major environmental changes 3. Still faster changes in environment

1. Mass production stage:

1. Mass production stage Strategic planning and modern industrial system evolve hand in hand. Planning centered around big volume, low price, standardized products assuring good profits.

2. Phase of major environmental changes:

2. Phase of major environmental changes All changes demanded a close attention of firm. Big volume- Product differentiation & market segmentation Low price- Higher price Standardized products- Variety Investment decisions became more difficult. Firms had to anticipate environmental trends.

3. Still faster changes in environment:

3. Still faster changes in environment Changes like globalization, science and technology, heavy investment in R&D, commercialization of new products. Managing the environment becomes crucial function New demands like To be strategically alert To be future oriented To be risk taker To be able to generate large resources To develop competences To grow big

Nature of strategic planning:

Nature of strategic planning It is management task concerned with future and growth. It is analytical process. It is a framework for corporate decisions. It ensures firm’s business and resources. It fights against uncertainty. It helps build core competencies.

Strategic planning process Strategic planning process is integrative and continues process:

Strategic planning process Strategic planning process is integrative and continues process

PowerPoint Presentation:

1.Clarifying the mission of corporation 2.Defining the business 3.Surveying the environment 4.Internal appraisal of firm 5.Setting corporate objectives 6.Formulating corporate strategy 7.Monitoring the strategy STRATEGIC PLANNING PROCESS

1.Clarifying the mission of corporation:

1.Clarifying the mission of corporation Mission is ultimate primary purpose of an organisation. An organization's mission is what society expects from the organisation.

3.Surveying the environment :

3.Surveying the environment Needs- 1.To spotting the opportunities and threats 2.To learn about events and trends 3.To identifies favorable & unfavorable factors Types- Macro environment Specific environment

2.Defining the business:

2.Defining the business Business definition means clear cut statement of business the firm is engaged in. Needs to define business- 1.To select right opportunities 2.To formulate strategies 3.To clarify threats 4.To provide blueprint for the choice of products & markets.

3.Surveying the environment :

3.Surveying the environment Macro environment Demographic environment Socio-cultural environment Economic environment Political & legal environment Natural & technology environment 2. Specific environment Demand Customer Industry and competition Government policy supplier

4.Internal appraisal of firm:

4.Internal appraisal of firm Assessing corporation’s capabilities and resources Strength & weakness Core competences Competitive advantages

5.Setting corporate objectives:

5.Setting corporate objectives Firms examines its level of performance Framing the aim Examining strategic planning gap and scope of growth Fixing the growth objective Setting specific objective Prescribing the priorities of objectives

6.Formulating corporate strategy:

6.Formulating corporate strategy Examines grand strategies- stability, expansion, divestment and combination Strategic choice Reviewing existing business Corporate level strategy and SBUs level strategy

7.Monitoring the strategy:

7.Monitoring the strategy

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