STRATEGIC PLANNING
STRATEGIC PLANNING – process of attaching strategies and tactics to each objectives set for the organization.
Planning – strategic process for achieving future objectives of service enterprise.
COMPONENTS:
1. Mission – describes current purpose and values of the organization. it is why organization exist.
It should be audited on an actual basis
2. Vision – describes the potential purposes.
The mission of an organization deals with the present while vision is concerned with the future direction of the firm.
3. Long Term Objectives (LTO) – those goals for the organization that will take more than one year to accomplish.
4. Short Term Objectives (RTO) – those that may be achieve within one year or less.
ENVIRONMENTAL SCANNING
1. External Scan – focuses on situation outside of the organization.
External Factors:
1. Opportunities – things will a potential positive impact.
2. Threats – things with a negative impact.
2. Internal Audit – focuses on situation inside of the organization.
Internal Factors:
1. Strength – things done well.
2. Weakness – things that could be done better.
SWOT ANALYSIS – total analysis form of situational analysis which is the most important part of the strategic planning process.
STRATEGY FORMULATION – is a planning process.
1. Audit the mission and vision
Provide the purpose, and core reasons for existence of the firm.
2. Formulation of LTO and STO
Strategies – actions to achieve LTOs
Tactics – actions to achieve STOs
3. Implementation Phase
Programs
Budgets
Procedure
Rules
4. Evaluation and Revision – comparing the actual performance with standard performance.
How to produce a Strategic Plan?
1. Conduct a scan of the external environment.
2. Discuss mission.
3. Look inside the organization.
4. Forecast the future.
5. Implement the plan.
Objectives:
1. Financial Objectives – address fiscal performance.
2. Product Market Mix Objectives – identify services and product good.
3. Functional Objectives – based on individual department.
Planning – strategic process for achieving future objectives of service enterprise.
COMPONENTS:
1. Mission – describes current purpose and values of the organization. it is why organization exist.
It should be audited on an actual basis
2. Vision – describes the potential purposes.
The mission of an organization deals with the present while vision is concerned with the future direction of the firm.
3. Long Term Objectives (LTO) – those goals for the organization that will take more than one year to accomplish.
4. Short Term Objectives (RTO) – those that may be achieve within one year or less.
ENVIRONMENTAL SCANNING
1. External Scan – focuses on situation outside of the organization.
External Factors:
1. Opportunities – things will a potential positive impact.
2. Threats – things with a negative impact.
2. Internal Audit – focuses on situation inside of the organization.
Internal Factors:
1. Strength – things done well.
2. Weakness – things that could be done better.
SWOT ANALYSIS – total analysis form of situational analysis which is the most important part of the strategic planning process.
STRATEGY FORMULATION – is a planning process.
1. Audit the mission and vision
Provide the purpose, and core reasons for existence of the firm.
2. Formulation of LTO and STO
Strategies – actions to achieve LTOs
Tactics – actions to achieve STOs
3. Implementation Phase
Programs
Budgets
Procedure
Rules
4. Evaluation and Revision – comparing the actual performance with standard performance.
How to produce a Strategic Plan?
1. Conduct a scan of the external environment.
2. Discuss mission.
3. Look inside the organization.
4. Forecast the future.
5. Implement the plan.
Objectives:
1. Financial Objectives – address fiscal performance.
2. Product Market Mix Objectives – identify services and product good.
3. Functional Objectives – based on individual department.