Introducción a la Planificación Estratérgica.ppt

STRATEGIC PLANNING
THE SET OF ORGANIZATIONAL
DECISIONS AND ACTIONS THAT
GUIDE THE LONG-TERM
PERFORMANCE OF THE FIRM

PURPOSE
TO GET THE FIRM FROM WHERE
IT WANTS TO BE, AND IN THE
PROCESS DEVELOP A
SUBSTANTIAL ADVANTAGE
OVER ITS COMPETITORS

CHARACTERISTICS OF
STRATEGIC MANAGEMENT
 External vs. Internal Focused
 Proactive vs. Reactive
 Long vs. Short Term Planning
 Comprehensive vs. Functional
 Significant Resource Allocation
 Uncertainty & Risk

STRATEGIC QUESTIONS
 Where is the firm now?
 Where should the firm be in the future?
 What actions must the firm take to get
there?
 How will the firm know that it is on
course and made the appropriate
decisions?

WHERE IS THE FIRM NOW?
 Mission
 Managerial Values and Attitudes
 Internal Analysis
 External Analysis

INTERNAL ANALYSIS -
COMPANY PROFILE
 Management Competence
 Organizational Structure
 Culture
 Functional Areas - HR
 Resources - Financial, People, Plant &
Equipment

EXTERNAL ANALYSIS
 Remote/Social Environment
 Industry Environment
 Operating Environment

WHERE SHOULD THE FIRM BE?
Strategy Formulation
 Long Term Objectives
 Choice Strategy - Corporate &
Business

Competitive Advantage
 Whenever a firm has an edge over
rivals in attracting customers and
defending against competitive forces
» A high quality workforce is often required to
compete on market response, product
quality, technology

WHAT ACTIONS MUST BE TAKEN?
 Strategy Implementation
 Annual Objectives
 Functional Strategies - HR
 Institutionalizing the Strategy

FUNCTIONAL LEVEL STRATEGY
 Are we utilizing our resources
effectively?
 Focus is the maximizing of resource
productivity within each functional unit
to implement corporate business level
strategies

HOW WILL WE KNOW WE GOT THERE?
 Evaluation and Control
 Long-Term and Annual Objectives
 Strategic Controls
–Implementation Control
–Strategic Surveillance
–Premise Control
 Operating Controls - Performance appraisal,
compensation budget, compra - ratio, selection ratios

Basic Elements of the Strategic
Management Process
Evaluation
and
Control
Strategy
Implementation
Environmental
Scanning
Strategy
Formulation

Environmental Analysis
Process of monitoring the
organizational environment to
identify opportunities and
threats that may influence the
firm’s choice of direction and its
ability to reach its goals

Strategic Analysis
Strategic Factors:
 Issues that have a high probability of
occurrence and high probability
impact. These are then characterized
as:
 Opportunities or Threats or
Constraints

Opportunities
Major favorable situation or trend in a
firm’s environment
 Overlooked market segment with high
demand
 Change in level or nature of competition
 Anticipated favorable change in regulations
 Technological advance
 Improvement in buyer and supplier relations

Threats
Major unfavorable situation or trend in a
firm’s environment - impediments to a
firm’s current or desired position
 Entrance of new competitors
 Slowing market growth
 Increasing bargaining power of suppliers and/or
buyers
 Technological advantages
 Unfavorable regulatory changes

Environmental Variables
Societal Environment
Economic
Forces
Technological
Forces
Political-Legal
Forces
Sociocultural
Forces
Internal
Environment
Structure
Culture
Resoures
Shareholders
Governments
Customers
Creditors
Communities
Competitors
Employees/
Labor Unions
Suppliers
Special
Interest
Groups
Trade Associations
Task
Environment
(Industry)

Some Important Variables in
the Societal Environment
Economic
GDP trends
Interest rates
Money supply
Inflation rates
Unemployment levels
Wage/price controls
Devaluation/revaluation
Energy availability and
cost
Disposable and
discretionary income
Technological
Total government
spending for R&D
Total industry spending for
R&D
Focus of technological
efforts
Patent protection
New products
New developments in
technology transfer from
lab to marketplace
Productivity improvements
through automation
Political-Legal
Antitrust regulations
Environmental protection
laws
Tax laws
Special incentives
Foreign trade regulations
Attitudes toward foreign
companies
Laws on hiring and
promotion
Stability of government
Sociocultural
Lifestyle changes
Career expectations
Consumer activism
Rate of family formation
Growth rate of population
Age distribution of
population
Regional shifts in
population
Life expectancies
Birth rates

Industry Analysis
Porter’s Five Forces
 Nature of competition determined
by five forces
 Collective strength of forces
determine profitability of industry
 Purpose of strategy is to “cope”
with competition

Forces Driving Industry
Competition
Threat
of New
Entrants
Bargaining
Power
of Suppliers
Bargaining
Power
of Buyers
Relative
Power
of Unions,
Governments,
etc.
Potential
Entrants
Threat of
Substitute
Products
or Services
Industry
Competitors
Rivalry Among
Existing Firms
Other
Stakeholders
Buyers
Substitutes
Suppliers
Source: Adapted/reprinted with permission
of The Free Press, an imprint of Simon &
Schuster, from Competitive Strategy:
Techniques for Analyzing Industries and
Competitors by Michael E. Porter. Copyright
© 1980 by The Free Press.

Task/Operating Environment
 Competitive position / Competitor
profiles
 Customer Profiles
 Suppliers
 Creditors
 Human Resources

Task/Operating Environment
 Stockholders
 Labor Unions
 Governments
 Special Interest Groups
 Trade Associations

Internal Analysis
Realistic Analysis of Firm’s
Capabilities

Strengths
A resource, skill or other advantage relative
to competitors and the needs of the markets -
a distinctive competence that gives the firm a
competitive advantage in its industry
» Financial Resources
» Buyer/supplier relations
» Market research
» HR policies/competencies
» Patents/production process

Weaknesses
Limitation or deficiency in resources, skills
and capabilities relative to competitors and
which impedes a firms effective performance.
 Limited financial capacity
 Inappropriate image
 Outdated production facilities or processes
 Poor quality products
 Conservative management team

Core Competencies and
Distinctive Competencies
Core Competencies
 Things a corporation can do exceedingly well
Distinctive Competencies
 Core competencies that are superior to those
of competitors
» obtain from employee skills, management
processes, and systems

Management
Organizational Structure Firm’s Image
Overall Control Systems Strategic Planning System
Management Personnel
Employee Skills and Morale Incentive Effectiveness
Employee Turnover Specialized Skills
Organizational Culture Organizational Climate
Labor Costs Industry Experience
Communication Systems HR Policies and
Procedures

Finance & Accounting
Ability to Raise Short-Term/Long-Term Cash
Corporate Resources Cost of Capitol
Investor/Owner RelationsLeverage Position
Price-Earnings Ratio Working Capitol
Cost Control Financial Size
Tax Considerations Accounting Syst.

Research and Development
R&D Budget
R&D Mix - Basic, Applied, Product/Process
Internal and External R&D
Patents, Trademarks
Technology Competence
R&D Transfer
Integration of R&D with Marketing & Production

Information Systems
Timeliness of Information
Accuracy of Information
Relevance of Information to Tactical Decisions
Ability of People to Use Information
Sufficiency of Information to Manage Quality,
Customer Service, Inventory.

Corporate Value Chain
4.6 Corporation Value Chain p. 87
Support
Activities
Primary Activities
Profit
Margin
Firm Infrastructure
(general management, accounting, finance, strategic planning)
Human Resource Management
(recruiting, training, development)
Technology Development
(R&D, product and process improvement)
Procurement
(purchasing of raw materials, machines, supplies)
Inbound
Logistics
(raw
materials
handling and
warehousing)
Operations
(machining,
assembling,
testing)
Outbound
Logistics
(warehousing
and
distribution
of finished
product)
Marketing
and Sales
(advertising,
promotion,
pricing,
channel
relations)
Service
(installation,
repair, parts)
Source: Adapted/
reprinted with the
permission of the The
Free Press, an imprint
of Simon & Schuster,
from Competitive
Advantage: Creating and
Sustaining Superior
Performance by Michael
E. Porter, p. 37.
Copyright © 1985 by
Michael E. Porter.

Selection of Strategies
Objective Setting Process
 Analyze environmental trends
 Establish or revise mission
 Develop objectives

Characteristics of
Strategic Objectives
 Long-term
 Specific
 Measurable
 Reachable
 Consistent in long and short-run
 Acceptable
 Hierarchy

Types or Areas
 Profitability
 Productivity
 Resource levels
 Competitive position
 Market standing
 Technology
 Employee relations
 Social responsibility

Corporate Analysis
What Business should we
pursue?
How do we allocate resources
among those businesses

Types of Strategies
Intensive (Concentration) Strategies
 Market penetration
 Market Development
 Product Development
 Innovation

Types of Strategies
Integration Strategies
 Forward Integration
 Backward Integration
 Horizontal Integration

Types of Strategies
Diversification Strategies
 Concentric
 Conglomerate

Types of Strategies
Defensive Strategies
 Retrenchment
 Divestiture
 Liquidation

Type of Strategies
Cooperative Strategies
»Strategic Alliance
»Joint Ventures

Business Level Strategy
How will each business
compete in its industry

Strategy and Competitive
Advantage
 COMPETITIVE ADVANTAGE exists when a firm’s
strategy gives it an edge in
» Defending against competitive forces and
» Securing customers
 Convince customers firm’s product / service offers
SUPERIOR VALUE
» Offer buyers a good product at a lower price
» Use differentiation to provide a better product
buyers think is worth a premium price

Porter’s Generic Competitive
Strategies
Source: Reprinted with permission of The
Free Press, an imprint of Simon &
Schuster, from The Competitive Advantage
of Nations by Michael E. Porter, p. 39.
Copyright © 1990 by Michael E. Porter.
Differentiation
Broad
Targ
et
Narrow
Targ
et
Competitive Advantage
Cost Leadership Differentiation
Cost Focus Focused
Differentiation
Competitive
Scope
Lower Cost

Porter’s Generic
Strategies Defined
 Cost Leadership: A strategy aimed at producing
standardized products at low per-unit cost for
consumers who are price-sensitive
 Differentiation: A strategy aimed at producing
products and services considered unique industry-
wide and directed at consumers who are relatively
price-insensitive
 Focus: A strategy aimed at producing products
and services that fulfill the needs of small groups of
customers

Characteristics of a
Low-Cost Provider
 Cost conscious corporate culture
 Employee participation in cost-control efforts
 Ongoing efforts to benchmark costs
 Intensive scrutiny of budget requests
 Programs promoting continuous cost improvement
Low-cost producers champion
FRUGALITY while aggressively
INVESTING in cost-saving improvements!

Differentiation Strategies
Incorporate differentiating features that
cause buyers to prefer firm’s product
or service over the brands of rivals
Find ways to differentiate that CREATE VALUE
for buyers and that are NOT EASILY
MATCHED or CHEAPLY COPIED by rivals
 Not spending more to achieve differentiation
than the price premium that can be charged

Types of Differentiation
Themes
 Unique taste -- Dr. Pepper
 Special features -- America Online
 Superior service -- FedEx, Ritz-Carlton
 Spare parts availability -- Caterpillar
 Engineering design and performance -- Mercedes
 Prestige -- Rolex
 Quality manufacture -- Honda , Toyota
 Technological leadership -- 3M Corporation, Intel
 Top-of-the-line image -- Ralph Lauren, Chanel

Functional Strategies
 Marketing
 Finance
 Research & Development
 Operations
 Human Resources
 Information Systems

Marketing
Product
Place
Promotion
Price
Distribution

Marketing
Develop competing product
(product overlap)
Customized products
Pricing and service mix
Competitive promotion

Research & Development:
Technology
Upgrade
Retain
Subcontract

Operations:
Quality & Productivity
Teams
Superautomate

Human Resources:
Recruitment & Selection
Internal vs external recruitment
Management development
systems
Link career path to strategy
Establish specific job skill
training

Human Resources:
Appraisal & Compensation
 Link pay and benefits to strategy
 Link performance appraisal to
strategy

Strategy Implementation
 Organizational Structure
» Network Organizations
 Tasks and Task Design
 Selection, Training and Development of
Human Resources
 Reward Systems
 Types of Information and Information
Systems

People
 Staffing Requirements
 Growth - impact on recruitment/selection
 Retrenchment - downsizing
 Mergers - redundant employees
 Knowledge & Skill Requirements
 Role Behavior Requirements
 Leadership Requirements

Matching Chief Executive “Types” with
Strategy
Average
High
Low
Business Strength/Competitive Position
Strong
Growth—Concentration
Dynamic Industry Expert
Stabiltiy
Cautious Profit Planner
Retrenchment—
Close Company
Professional
Liquidator
Retrenchment—
Save Company
Turnaround
Specialist
Industry
Attractiveness
Source: Thomas L. Wheelen and J. David
Hunger, “Matching Proposed Chief
Executive ‘Types’ with Corporate
Strategy.” Copyright © 1991 by Wheelen
and Hunger Associates. Reprinted by
permission.
Mediu
m
Weak
Growth—Diversification
Analytical Portfolio
Manager

Strategic Control
 Environmental Premises
 Implementation
 Strategic thrusts
 Milestone Reviews (Annual Objectives)
 Strategic Surveillance
 Objectives

HR Contribution to Strategy
Strategy Formulation
Strategy Implementation

HR Role
 Environmental Scanning
» Demographics, corporate intelligence
 Feasibility of Strategic Options
 Implementation of Resource Allocation
Decisions
 Lead Time for Dealing with Labor
Shortages and Surpluses

Factors Affecting HR
Integration
 Environmental Factors
» technology, industry competition
 Degree of Diversification
 Status of HR Executive
 Degree Compensation Linked to Firm Performance
 Changing Skill Demands
 Changing Composition of Work Force
 Mergers Acquisitions

Role Behaviors and Practices
 Innovation Strategies Require: creative behavior, longer-
term focus, cooperation, moderate concern for quality, equal concern
for process and results, risk taking, high tolerance of ambiguity
 Quality Enhancement Strategies Require: repetitive
and predictable behaviors, long or immediate-term focus, modest
amount of cooperation, high concern for quality, modest concern for
quantity, high concern for process, low risk taking
 Cost Reduction Strategies:repetitive behaviors, short-term
focus, autonomous activity, modest concern for quality, high concern
for quantity, primary concern for results, low risk-taking, comfort with
stability

Introducción a la Planificación Estratérgica.ppt

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Introducción a la Planificación Estratérgica.ppt