Strategic Management Plan Steps

1. Introduction
Organization background

1) Organization name And Overview

2) Organization Size
i. Number of employees
a) 1-49 S
b) 50-249 M
c) Over 249 L
ii. Trend Analysis
1. Revenues
2. Growth Rate
3. Trend
a. Increase
b. Declining
c. Plateau

3) Organization Type
i. National or multinational
ii. Legal Status
iii. For Profit Organization or not for profit organization

4) Product/service portfolio
i. Dimensions
a) Width: product line: Business units
b) Length: categories
c) Depth: SKUS: Stock keeping units
ii. BCG: Boston Consulting Group: for Portfolio Analysis
a) X Axis Relative MS: to the market leader: low and High
b) Y Axis Market growth: low and high
1. X Low Y Low: Dog
2. X High Y Haigh: Star
3. X High Y Low : Cash cow
4. X low Y Haigh: ?

5) Customer Base
i. B2C – G2C
ii. B2B – G2B
iii. B2G – G2G

6) Main Competitors: Market leader – Challenges

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 i. Organization name
ii. Revenues: Trend
iii. Market Share
iv. Growth Rate

7) Stakeholders Analysis
2. 7 markets model
i. Internal markets: employees
ii. Influence markets: Indirect
iii. Referral markets: Direct
iv. Customer: satisfaction  meeting customer expectation
v. Employee market: positive or negative
vi. Shareholders: goals
vii. Supplies
1. Numbers
2. Bargaining power
3. Cartel
2. Vision
1. Current
2. Critique
3. Propose
i. 3 sentences
ii. Clear
iii. Concise
iv. Non-financial
v. Wishful
3. Mission
1. Current
2. Critique
3. Propose
i. Customers
ii. Products
iii. Markets
iv. Technology
v. Concern for survival, growth, and profitability
vi. Philosophy
vii. Self-concept
viii. Concern for public image
ix. Concern for employees

4. Values
1. Current values
2. Explain
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 3. Propose
i. Generic Values
1. Common
ii. Shadow Values
1. Positive (1,2)
2. Negative  marketing team
iii. Progressive Values (1,2)
iv. Defining values = total Generic and positive shadow and
progressive values
Brand: How to humanize the product

2. Environmental scanning

1) External Analysis

i. Opportunities
ii. Threats
a) Macro environment – force, no control
1. PESTEL
1) Political
1. Taxation Policy
2. Government policy
3. Pressure groups
4. Wars
5. Terrorist attacks
6. Revolutions
7. Stability of political regime
2) Economics
1. Interest rate
2. Inflation rate
3. Unemployment rate
4. GDP
5. Booms and recessions
6. Energy available and cost
7. Income
3) Socio – Cultural
1. Demographics
2. Distribution of income
3. Lifestyle:
a) Healthy
b) Ecommerce
c) Time poor - Money Rich
d) Showrooming

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 e) Webrooming
4. Education
5. Consumer trends
4) Technology
1. New discoveries and innovations
2. Speed of technology transfer
3. Rates of obsolescence
4. Internet
5. Information technology
6. Internet
7. Communications
8. Pharmaceutical
9. Electronics
5) Ecological/Environmental
1. Environmental Regulations
2. Environmental Protection legislations
3. Business ethics
4. Green industries
6) Legal
1. Employment laws
2. Industry laws
3. Competition law
4. Consumer protection law
5. Contract law
6. Patency
7. Anti-dumping law
8. Advertisement law

b) Microenvironment - player
1. Porter’s 5 forces (6 is complementors)
1) Rivalry among existing competitors
1. Force name
2. Haigh or law pressure
3. Justification
4. Opportunity or threats
2) Threat of new entrants “entry barriers”
3) Potential development of substitute products
4) Bargaining power of suppliers
5) buyer
6) Complementors
c) CPM Competitive profile matrix
1. CSF critical success factors (min 11) rate 1 to 4
1) Average (2.5)
2. Delphie Technique
d) Issue priority matrix (impact and probability)
e) EFAS Matrix (external strategic factors analysis summary) (Final
Result for external analysis) write a comment on the result
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Why we make installment 1, increase customer based 3, increase demand 3, increase
perceived Purchasing power
Analysis about = Data  correct + relevant
CIA factbook [Link]
Impact by time: increasing or reducing or not yet determined

2) Internal Analysis

i. Strengths

ii. Weaknesses

a) Thompson
1. Tangible resources (Own or have the right to access)
1) Physical resources
2) Financial resources
3) Technological resources
4) Organizational resources
2. Intangible resources
1) Human Assets and intellectual capital
2) Brands image and reputational assets
3) Relationships
4) Organizational culture and incentive systems
b) Mckenzie 7s
1. Hard Element
1) Strategy
1. Entrepreneurial or simple organization (flat)
2. The Machine Organization (bureaucracy)
3. Professional Organization (experts)
4. Divisional Organization
5. Innovative organization
2) Structure
3) System
2. Soft S elements
1) Shared values
2) Style
1. Autocratic/authoritarian leaders
2. Participative or democratic leaders
3. Delegative or free rein (laissez-fair) leader
4. Bass and Avolio leadership styles
a) Transitional leadership
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 b) Transformational leadership
3) Staff
4) Skills
c) Financial Analysis
d) Portal value chain analysis
1. Primary
1) Inbound logistics (raw materials)
2) Operations
3) Outbound logistics (logistics)
4) Marketing & sales
5) After sales services
2. Secondary
1) Infrastructure
2) Human resources management
3) Technological development (R&D)
4) Procurement
e) VRIN/VRIO
1. Available  if not (Competitive disadvantage)
2. Rare  if not (Competitive parity)
3. Inimitable  if not (temporary Competitive advantage)
4. Organized /  if not (unused Competitive advantage)
f) IFAS
1. Strengths takes 4 or 3 (4 major strength - 3 minor strength)
2. Weakness takes 2 or 1 (1 major weakness – 2 minor
weakness)

3. Strategy formulation (matching phase)

1) Qualitative
i. Swot / tows (growth strategy, Generic Strategy and mandatory tactics)
a) SO – maxi Max
b) ST – Maxi Min
c) WO – Mini – Max
d) WT – Mini -Min
1. Write a statement
2. Where to compete
3. How to compete
2) Quantitative

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 i. IE Matrix (internal external matrix)
ii. SPACE Matrix
a) Financial position FP (positive)
b) Industry Position IP (positive)
c) Stability Position SP (Negative)
d) Competitive positions CP (Negative)
X AXIS: SP + CP
Y AXIS: FP + IP
iii. BCG

3) growth strategy: ANSOFF

i. Market Penetration (Existing product – Existing Market)
a) Increase consumption
b) Increase frequency of purchase
1. AS attractiveness score
2. TAS Total Attractiveness score
ii. Market Development (Existing product – New Market)
iii. Product Development (New product – Existing Market)
a) Partial Development
b) Full Development
iv. Diversification (New product – New Market)
1, Where to compete
a) New Market
b) Existing Market
c) Both
2, Mandatory
3, Long Term Strategy
3, More Than 1 Strategy
4, Start with the product
New Market or Existing market
A, New Segment (new Market)
B, New Place online – offline (new market)
C, New business (new Market)
4) Porter’s strategy (Generic Strategy)
i. Cost
a) Cost leadership
b) Cost focus
ii. Uniqueness
a) Differentiation
1. Product Differentiation USP Unique selling proposition
feature or benefit or functional
2. Brand Differentiation UEP unique emotional proposition
3. Promotion Differentiation (hard selling)
4. Distribution differentiation (availability and coverage)
5. Price Differentiation (Price vs Value)
b) Differentiation focus
1, how to compete
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 2, Mandatory
3, Long term

4. Strategy selection
How to choose the strategy?
The quantitative strategic planning matrix: “QSPM”
1) SWOT – Weigh – Strateges – AS TAS – (weigh * AS = TAS)
And write your comment about the primary and the secondary strategy that you get

5. Objective
How to write an objective (SMART):
A. Specific
B. Measurable (quantify)
C. Achievable, Attainable, Assignable
D. Realistic
E. Time bound
Which objective do you choose and justify
1. AIDA – R
a. Awareness
b. Interest
c. Desired
d. Action
e. Retention

2. 5S model
a. Sell (traditional)
b. Speak (Awareness)
i. TOM top of mind
ii. Spontaneous brand awareness (without my aid)
iii. Aided brand awareness (prompt brand awareness)
c. Save (Web Self-service)
d. Serve
i. Benefit online not offline
ii. Benefit offline not online
e. Sizzle (to extend brand online)
6. Implementation
(Strategic management) (type – role – description – KPI’s)
1) Top Management
i. Communicate
ii. Plan monitoring
iii. Improvement
2) Marketing and sales
i. Promotions
ii. Market Sales

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 iii. Increase Sales
iv. Increase Profit
3) Operation
i. Cost Reduction
ii. Supply chain
a) Inbound
b) Outbound
4) HR
i. L&D
ii. Performance Management
iii. Staffing
5) Finance
i. Budget
6) R&D

*(KPI’s) for each one

7. Business Plan
1) Marketing plan
Using SOSTAC (Situation, Objective, Strategy, Tactics, Action, Control)
i. Situation (Strategic audit)
ii. Objectives
iii. Strategy
a) Growth Strategy (from QSPM)
b) Generic Strategy (from TOWS)
1. Differentiation
2. Differentiation focus
3. Cost leadership
4. Cost focus
c) STP (Segmentation targeting positioning)
1. Segmentation (at least 2)
1) Demographics
1. Age (range 10 years)
2. Gender (M & F)

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 [Link] size (4 or 5)
[Link]
[Link]
[Link]
[Link]
a) Silent (60 and less) integrity
b) Boomers (70) agelessness
c) X (80) Skeptic
d) Y (90) over Confidence
e) Z (2000 and more) Socially connected
2) Psychographics
1. Social Class
a) A
i. A1 Upper Upper
ii. A2 Lower Upper
b) B
i. B1 Upper Middle to project successful
image
ii. B2 Lower Middle (white collars)
c) C
i. C1 Upper Lower (blue collars)
ii. C2 Lower Lower (unskilled)
2. Lifestyle
a) Healthy
b) Ecommerce
c) Time poor - Money Rich
d) Showrooming
e) Webrooming
3) Behavioral
1. Benefit sought (benefit preserved by the
customer)
2. Loyalty
a) Low or average or high
b) RFM analysis (Recency, Frequency,
Monetary)
i. R (Long standing – Average –
recent)
ii. F (single order - - frequent)
iii. M (Low -Average – high)
4) Geographic
1. Country
2. City
3. Region
2. Targeting
*Choos the segment
1) Undifferentiated (cost leadership)
2) Concentrated (cost focus or differentiation focus)
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 3) Differentiation (differentiation)
1. Segment size
2. Segment profitability
a) Existing (RFM) loyalty
b) New (expected RFM)
3. Positioning
*Write the positioning strategy and the positioning
statement
1) Attribute by benefit
2) Quality
3) price
4) use and application
5) VS competitor
iv. Tactics
1. Product
1) Product type
1. (B2B or B2G) just name and type
2. B2C
a) Convenient
b) Shopping
c) Specialty
d) Unsought
2) Product Concept (total bundle of benefits)
1. Core product (core customer value)
2. Actual Product (full product specification)
3. Augmented product (Actual + extra value)
a) Service
b) USP (unique selling proposition)
2. Price
1) Pricing Strategies (price range) one or two strategies
1. Skimming (highest one)
2. Cost Plus (TC + 20% or 25%)
3. Penetration (lowest one) – “me too”
4. Psychological Pricing
a) Odd (99.99)
b) Even (10M)
5. EDLD (Everyday low price)
6. Loss Leader
7. Special event pricing
8. Demand Based Pricing
9. Trail Pricing
[Link] Discrimination
a) Place
b) Person
c) Time
[Link] Parity

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 [Link] interest financing
a) Perceived purchasing power
b) Customer Base
[Link]

3. Place
1) Distribution channel
1. Producer  customer
2. Producer  retail  customer
3. Producer  Distribution  Retail  Customer
2) Distribution strategy
1. Intensive
2. Selective
3. Exclusive
3) Online/Offline place (table)
1. Current – Develop or not
4. Promotion
1) Promotion strategy
1. Pull  End users
2. Push  Intermediaries
3. Profile (Hybrid – push & pull)
2) Promotion Mix
ATL above the line (Reach high) - Broadcasting
BTL Below the line (Reach Law) narrowcasting
TTL Through the line (in the reach)
1. Sales promotion - BTL
For Short-term sales and Long-term market
share
a) B2C Consumer Promotion
b) B2B Trade Promotion
c) Business Promotion
2. Personal selling – BTL
a) Target segment
b) Marketing message
i. Customized message (benefit
sought)
ii. Standardized Message
(Positioning)
3. Public relations – BTL
a) Press release
b) CSR
i. Promotion
ii. Networking
iii. Sustainability
iv. Paying pack to the community
4. Direct marketing- TTL
Data & Clue
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 5. Advertising- ATL
a) Rational
i. Factual
ii. Demonstration
iii. Comparison
iv. Slice of life
b) Emotional
i. Celebrity endorsement
“overshadowing – celebrity
reputation” (fast history and
reputation management team)
ii. Sexual appeal
iii. Lifestyle
iv. Animation
v. Music
vi. Fear
vii. Humor
viii. Combination
5. People
People relate to the marketing plan
Weakness  strengths
6. Process
(system in Makenzie 7S -based units)

7. Physical Evidence
1) Packaging for product
2) Premises for services UI + UX
v. Action
a) GANTT Chart
b) RACI model
1. Responsible (specialist or executive)
2. Accountable (marketing manager – brand manager –
Product Manager – team leader)
3. Consulted (Director – head – consultant)
4. Informed (Top Management)
c) Marketing budget
1. % of sales (SMEs 8% to 10%) (Large 2% to 5%) +5% for
launch product
2. Task method (total + or - 10%)
3. Trend Analysis

vi. Control
Write objective – KPIs – Target (1 year or 3 years)
a) Balance scorecard (for strategic and marketing tactics)
1. Financial
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 2. Customer
1) NPS - Net Promoted Score
3. Learning & Growth
4. Internal Process

2) Operation plan
(transfer weaknesses to strengths from Portal Value chain)

3) HR Plan
Paragraph for each point in HR sheet

4) Financial Plan
NAIVE Method

How to control your own strategy

1. First step: analysis
a. Correct data
b. Relevant: reflect on your industry

Type of products
1, convenient product (no information search) –intensive Distribution
Shopping product (information search) – Selective distribution
Specialty product (luxury products) – exclusive distribution
Unsought product (unplanned purchase) – distribution based on the product

Gartner hype cycle

References:
1, Mubasher
2, CIA Factor book
3, CBE
4, CAPMASS
5,EBESCO

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[Link] insights
[Link] Scalar
8, Statistica
9, CIM content hub – [Link]
TLC – introduction – Growth – Maturity – Decline
APIC (Kotler) Analysis Planning Implementation Control
MOST Mission Objective Strategy Tactics
SOSTAC Situational Analysis – Objective -Strategy – Tactics- Action – Control
CTR (click through rate)
DRTV (Direct Response Television advertising) for 2 days
Infomercial in maturity phase
Marketer - Director - Celebrity

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