M/615/2675 Strategic Planning - ATHE Level 7 Diploma in Strategic Management

Aim: The aim of this unit is to develop the knowledge, understanding and skills necessary to develop an organisational strategic plan

Learning outcome 1: Understand the foundations for developing organisational strategy
Learning outcome 2. Understand the external environment affecting organisations
Learning outcome 3. Be able to review an organisation`s strategy and business plans
Learning outcome 4. Be able to develop strategy options for an organisation
Learning outcome 5. Understand how to create a strategic plan to meet business objectives

Indicative Content

1. Understand the foundations for developing organisational strategy

• Explanations of organisational vision, mission, strategy and business plans; the differences and the interface between them
• Core organisational values e.g. ethical, environmental, client centred; cultural diversity; drivers e.g. business growth; profit; market share; workforce expectation
• Objectives and measures: SMARTER (specific, measurable, achievable, realistic, time- based, evaluate, re-evaluate) objectives; stakeholder involvement

2. Understand the external environment affecting organisations

• External factors: needs and expectations of stakeholders e.g. customer groups, shareholders, suppliers and sub-contractors, the workforce and the community
• The success and direction of competitors and changes in the market sector as a whole in the short and long term e.g. product design; political changes and developments; legal changes; trends and expectations; exchange rates; trading agreements
• Use of external surveys and statistics; customer analysis and feedback; use of tools e.g. SWOT (strengths, weaknesses, opportunities, threats) analysis, STEEP (social, technological, economic, environmental and political) analysis; market research including primary and secondary information; feasibility

3. Be able to review an organisation`s strategy and business plans

• The purpose of review and what this will entail; tools e.g. Value Chain analysis, SWOT analysis, Porter`s Five Forces; internal surveys and statistics
• Market position; market share analysis; life cycle analysis; Boston growth share BCG Matrix
• SWOT analysis, resource analysis, competitive analysis, skills and competencies audit, benchmarking sustainable competitive advantage; pricing strategies; resource analysis; economies of scale and scope for this; market equilibrium

4. Be able to develop strategy options for an organization Strategic planning options:
• Ansoff Matrix Strategies; corporate expansion; integration i.e. vertical, backwards and
forwards; horizontal; differentiation; Porter`s generic strategies
• Diversification, control of resources, distribution channels; Mintzberg`s strategies (deliberate, emergent)
• Strategic alliance; merger, acquisition; competitive strategies
• Value-based strategy; contingency strategy; maintaining/increasing market share, niche markets; market segmentation
• Adding value; workforce competence development; product portfolio; reconfiguration; gap analysis; profitability; portfolio analysis; benchmarking
• Criteria for judging options; feasibility studies; risk assessments