Strategic Planning
Aims:
To develop the knowledge, understanding and skills necessary to develop an organisational strategic plan.
Assessment Guidance:
To achieve this unit, learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. Additional assessment guidance is provided. This unit cannot be approached from a theoretical perspective with information gathered solely from public sources. In order to achieve the Learning Outcomes for the unit, the learner work must be produced for a specific organisation. This must be an organisation the learner knows well and ideally it should be an SME. Learners will require guidance in selecting a suitable organisation.
1. Understand the external environment affecting an organisation
1.1 Explain the importance of external factors affecting an organisation
1.2 Analyse the needs and expectations of stakeholders of an organisation
1.3 Analyse the major changes taking place in the external environment that will affect strategy
2. Be able to review existing business plans and strategies of an organisation
2.1 Use appropriate tools to analyse the effects of current business plans
2.2 Review the position of an organisation in its current market
2.3 Evaluate the competitive strengths and weaknesses of an organisation’s current business strategies
3. Be able to develop options for strategic planning for an organisation
3.1 Use modelling tools to develop strategic options for an organisation
3.2 Develop a comparative understanding of activity from organisations in the market
3.3 Create options to form the basis of future organisational strategy
4. Be able to construct a strategy plan for an organization
4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of an organisation
4.2 Develop criteria for reviewing potential options for a strategy plan
4.3 Construct an agreed strategy plan that includes resource implications
5. Be able to examine factors affecting an organisational strategy plan
5.1 Compare core organisational values (ethical, cultural, environmental, social and business) with the current business objectives of an organisation
5.2 Develop appropriate vision and mission statements for an organisation
5.3 Produce agreed future management objectives for an organisation
5.4 Develop measures for evaluating a strategy plan
6. Be able to plan for the implementation of a strategy plan
6.1 Develop a schedule for implementing a strategy plan in an organisation
6.2 Create appropriate dissemination processes to gain commitment from stakeholders in an organisation
6.3 Design monitoring and evaluation systems for the implementation of a strategy plan in an organisation
Indicative Content
- 1. Understand the external environment affecting an organisation
External factors :
- Stakeholders, competitive environment, PESTLE
Stakeholder expectations:
- Customer expectations, supply chain relationship, market and investor expectations
Changes:
- Socio-political and legal changes, technological change and development, product development; analysis tools: TESTLE, SWOT; customer analysis, competitor analysis
- 2. Be able to review existing business plans and strategies of an organisation
Tools:
Value Chain analysis, SWOT analysis, Five Forces
Market position:
Market share analysis, life cycle analysis, Boston (BCG) Matrix
Competitiveness:
SWOT analysis, resource analysis, competitive analysis, skills and competencies audit, benchmarking
- 3. Be able to develop options for strategic planning for an organisation
Modelling tools:
- Mintzberg, Ansoff, gap analysis, competitiveness strategies
Competitiveness analysis:
- Benchmarking, portfolio analysis, market segmentation
Strategic options:
- Corporate expansion, mergers and acquisitions, niche marketing, diversification, control of distribution channels, efficiency in production, technological leadership, market share
- 4. Be able to construct a strategy plan for an organisation
Structure:
- Mission statement /corporate vision, corporate values and principles, SWOT analysis, competitive advantage, strategic goals / initiatives, strategy, scorecard, execution plan
Assessment criteria:
- Balanced scorecard; targets / interim targets / goals; success metrics
Resources:
- Resources, skills and competencies, roles, action plans, responsibilities and accountability
- 5. Be able to examine factors affecting an organisational strategy plan Organisational
Values:
- Corporate culture, corporate / brand image, organisational structure and staffing, operational abilities, market share, resources, patents and IP, corporate experience, contracts, licences and relationships
Vision and mission statement:
- Purpose of vision and mission statements, vision in relation to corporate values, vision statement audience (internal and external), mission statement goals and objectives, mission statement key success measures
Management objectives setting:
- Areas: financial, marketing, products/services, operations, resources, environment and community; ethical framework / CSR; smart objectives and success criteria
Evaluating the plan:
- Monitoring; responsibilities / accountability for monitoring; strategic changes/deviation; frequency of monitoring
6. Be able to plan for the implementation of a strategy plan
Implementation plan:
- Establish plan with end user buy-in, establish tracking system, align budget, align departmental plans to strategy
Stakeholder buy-in:
- User participation in strategy process, tie departmental plans into strategic plan, align performance management and reward systems to strategy implementation
Monitoring and evaluation:
- Monthly strategy planning meetings, annual review meetings, role of celebration
Issues:
- Lack of ownership, communication failures, ‘meaningless’ plan without buy-in, no accountability, lack of employee empowerment.
