Class 2 - Planning-S1 2024 Business Planning PDF

Planning CLASS 2 Calm Seas  Let’s read about Calm Seas Planning Process 1. Determine what you want to do 2. Decide how to plan to accomplish it 3. Determine why you want to do it Stakeholders  People or organizations that are affected by the company or can influence the c...

Planning CLASS 2 Calm Seas  Let’s read about Calm Seas Planning Process 1. Determine what you want to do 2. Decide how to plan to accomplish it 3. Determine why you want to do it Stakeholders  People or organizations that are affected by the company or can influence the company  Internal Stakeholders  External Stakeholders Stakeholders  Customers Employee Unions  Supplier Organizational Culture  Competitors Shareholders  Government  Public  Market Demand  Technological Developments  Demographic Conditions Calm Seas Stakeholders  Internal  External Strength, Weakness, Opportunity, and Threat Analysis (SWOT)  SWOT Analysis  Strength  Weaknesses  Opportunities  Threats SWOT STRENGTHS WEAKNESSES OPPORTUNITIES THREATS SWOT for Calm Seas  List them Competitive Advantages  Faster  Bigger  Cheaper  Stronger  More luxurious  Locally produced or locally sourced suppliers  Sustainable  Customer-oriented  Better Competitive Advantages of Calm Seas  List them Michael Porter’s Generic Strategies 1. Cost Leadership Strategy 2. Differentiation Strategy 3. Focus Strategy 1. Cost Leadership Strategy  Pursue lower costs  Reduce your selling price so increase market share  Match competitors’ price and make more profit Differentiation Strategy  Ensure that your product stands out  Quality  Features  Service  Can charge a higher price Focus Strategy  Concentrate on a market niche  Understand that group of customers very well  E.g. Kayaks for disabled users, or for children Other Strategies 1. Growth 2. Stability 3. Retrenchment 4. Combination 1. Growth Strategy  Expand production 2. Stability  Maintain the current situation  No new markets  No new products 3. Retrenchment  Cut back  Sell some assets  Lay off employees  Get out of some countries 4. Combination  Grow in some areas such as expand sales in a particular type of kayak  Maintain in other areas such as keep the same number of distributorships in the US market  Cut back in some areas such as reduce the amount or types of kayaks they plan to make Example Action/Implementation Plan  Decide on how you are going to achieve the goal Action/Implementation Plan What is to be Done Who is Responsible Steps and When Due Action/Implementation Plan HW 1. Based on the SWOT analysis from class, decide on an action plan for Calm Seas. The plan should have at least 2 goals (the what?), who is responsible, and 5 steps with dates to accomplish the goals. 2. Repeat the above for an organization on campus. 3. Evaluate the mission statements of a local companies. Your evaluation should include but is not limited to the following:  Clarity of the statement.  Does the company's mission statement communicate its purpose?  Would the statement provide guidance to decision making in the organization? 4. In no more than 100 words, discuss how “competitive advantage” relates to/affects organizational planning.