Strategic Plan Outline:


  1. Business Definition, identification of:
    • Markets to be studied.
    • Products to be sold.
    • Basis upon which company will compete.

  2. Situational Assessment
    • Analysis of the internal and external factors that influence business performance:
      • Broad social, political and economic forces impact the business.
         
      • Industry analysis - review of major competitive forces shaping industry structure such as customers, suppliers, threats from substitute products and technologies, the nature of entry barriers protecting the business from new competitors.
         
      • Competitor analysis - develop profiles of the different competitors' business strategies.
         
    • Identification of strengths and weaknesses arising from an evaluation of competencies and resources.
       
    • Definition of strategic objectives, addressing the following:
      • How the company's money is to be spent.
      • A ranking of the above.
      • How the above are to be balanced so that the company's economic mission isn't jeopardized.


  3. Strategic Development
    • Generation of strategic alternatives by:
      • Running "Blue Sky" sessions to foster creative thinking about business strategies
      • Identifying ways to change "the rules of competition"
      • Analyzing the value-added process to create competitive advantage
      • Anticipating competitive response and identifying likely scenarios
         
    • Evaluation of the strategic options:
      • Test strategies for internal consistency, feasibility, risk and payback
      • Check cash flow implications
         
    • Final choice of a strategy, identifies:
      • Competitive advantage to be established through cost leadership or by providing value-added products/services


  4. Implementation
    • Translation of chosen strategy into workable marketing, production and finance plans linked to budgetary objectives
    • Identification of the "critical success factors", key activities that have to be performed flawlessly in order to ensure successful implementation
    • Maintenance of simple and lean organizational structures
    • Creation of a monitoring and control system using milestones and concentrating on closing performance gaps
    • Development of an incentive scheme that rewards Managers who get things done - not those who write about what is needed
    • Preparation of formal contingency plans