Strategic Planning Fundamentals

Strategic Planning

• Strategic planning is a long-term process.
• It is the tactical and operative process that focuses on maintaining the company as a whole in its environment.
• Its development involves analyzing the external and internal environment, formulating strategies, and implementing and controlling them.
• Factors to consider include the macro environment.
  • Globalization
  • International competition
  • Exchange rate fluctuations
  • Uncertainty
• It has a strong external focus, considering environmental factors.
• Strategic planning is a set of elements that unify, integrate, and give coherence to decisions.
• It is a type of external orientation decision, supporting the organization's substantial purposes.
• Strategic objectives
  • Are achieved in the short term.
  • Maintain the company's stability.
  • Sales and logistics are examples.
• Levels Of Planning
  • Strategic planning (Long Term) equals five years.
  • Tactical planning (Medium Term) equals two to three years.
  • Operational planning (Short Term) equals one year.
• Strategic Plan
• Strategic plans consist of six stages.
  • The National Development Plan (PND) encompasses governmental policies and includes all involved.
  • The first stage is determining the mission, vision, and strategic object based on the goal.
• Guides the path the company wants to take.

Strategic Analysis

• You must analyze the opportunities and threats of a business.
  • Opportunities represent aspects external to the organization that can drive growth.
  • Growth opportunities may include new markets, export of goods, mergers and acquisitions, and international growth.
  • Threats are environmental forces that represent negative factors or potential problems.
  • Threats might include competition, substitute products, imports, and tariffs.

Internal Analysis

• A strengths analysis identifies strengths, functionality, and capabilities.
  • Quality and training are strengths.
  • Weaknesses are activities or resources that perform inefficiently or get in the way of proper functionality.
  • High production costs and resistance to change are weaknesses.
  • A lack of planning, a lack of skills, and obsolete technology are also weaknesses.
• Choosing scale considers descending order of importance.

SWOT Analysis

• 4th step involving SWOT analysis and formulation of strategies.
  • It is a framework for identifying and analyzing internal and external factors that can affect the viability of a project, product, place or company.
  • External include risks and opportunities.
  • Internal include strengths and weaknesses.
• 5th step involves strategy implementation supporting the organizational structure.
  • A strategy must have structure, people, resources, systems, information, culture, leadership.
  • Implementation includes the three steps of introduction, development, and consolidation.

Strategic Control

• The 6th step consists of a strategy control systems to support managers as the organization progresses, and to correct deviations when they appear.
• Conclusion:
  • Engaging in strategic planning is necessary for both administrators and members of an organization.
  • Applying this methodology must contemplate adaptations to the needs of each company.
  • No magical formula of success exists that is applicable to all organizations.
• Implementation requires answering: What? How much? How? Where? When?

Food Safety

• Exam date: March 28th.
• The 2nd unit is focused on strategic administration and HACCP.
• Analysis of hazards and critical control points (APPCC - HACCP).
• Food safety definition:
  • It is a proactive system of food control with the primary objective of ensuring food safety.
  • This task is delegated to the food handler and producer.
  • Examples include tainted mandarin oranges.
  • "Inocuo" signifies harmless.
• Food safety:
  • The guarantee that food will not cause harm to the consumer.
  • Food must be prepared according to its intended use.
• A hazard may be biological, physical, or chemical.
  • It is an agent or condition in food that can cause harm to consumer health.
• Background from the creator of "good workplace":
  • In 1950, TQM's Dr. Deming focused on manufacture, quality, and service. He also suggested to reduce waste and unnecessary costs of unused materials.
  • In 1960, Pillsbury Company, together with the US Army and NASA, produced safe food for the space program.

Food Storage and Production

• When producing and storing food, you must produce it with quality and reduce cost.
• Considering that the sources of food could be the main cause of diseases for the astronauts, the company adopted the HACCP system, reducing the number of tests or inspections on the final product.
• Benefits of implementing the FAO system include:
  • Increasing consumer confidence.
  • Guaranteeing food safety.
  • Complying with legal requirements.
  • Reducing the need for product inspection and analysis.
  • Using resources efficiently.
  • Reducing costs.