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Strategic Management Plan Guidelines
This guide is not to be followed in chart format.
PHASE ONE
Introduction
Who is the company, what do they do, how do they do it. This should be 3-5 well written paragraphs introducing the company. (One to Two pages)
Mission and Vision
Analyze the mission and vision statement of your company. Purpose is to give your reader an understanding of what the firm says it is about and what it aspires to do. By reading a brief history and the mission and vision, your company has been introduced.
A. Vision/Mission Analysis-Does the vision & mission statements do the following. Explain how, why or why not?
a. Clearly defined their customers
b. Identify the markets the business operates in
c. Identify the importance of technology
d. Seem concerned for survival, growth and profitability
e. Describe your beliefs, aspirations and values
f. Identify your competitive strengths
g. Include a concern for public image, social community and environment
h. Stakeholder value analysis
i. Link ethical principles to vision and mission including management accountability
(Written in Essay Format with at least three pages)
Strategic Elements of History
This is a more lengthy section, usually about a page and a half capturing the peaks and valleys of a firm and relating growth and retraction to strategic choices. Management makes choices, takes different market positions, introduces different product line, and acquires other companies. We are still painting the picture of the company. This is our starting point. (One page).
External Environment
STEEP
Socio-cultural The attitudes, values, norms, beliefs, behaviors and associated demographic trends characteristic of a given geographic area.
Technological Are there any technology changes that will affect your business?
Environmental Factors The developments outside an organization that includes domestic/international impact.
Economic Are there any local, national, regional or global technology changes that may impact you or your customers
Political/Legal What are the legal/political factors as well as government systems within which an organization functions?
(All Written in Essay Format) (5-7 pages)
External Factor Evaluation – EFE Summary
Your job in this section is to describe information determined from external factor evaluation. This should be two pages of summary, with the EFE matrix in the appendix section.
Company Competitive Position – CPM Summary
This section is where you reveal the current competitive position and opportunities and threats that need to be addressed. Your analysis of EFE and CPM will help you make your arguments. This should be two pages of summary, with the CPM matrix in the appendix section.
Internal Factor Evaluation – IFE Summary
From your analysis what is the company’s internal capabilities and what impact do these capabilities have on your future strategic decisions. Think in terms of what the company is good at and what its sustainable competitive advantages are. Normally it takes about a page and a half to do this right. This should be two pages of summary, with the EFE matrix in the appendix section.
Porter’s Five Forces Module
Company Environment-Porter’s Five Forces Model:
Threat of New Market Entrants Ease of the Entry Rating (What is the rating? High, Medium, or Low)
Economies of scale
Proprietary product differences
Brand Identity
Switching costs
Capital Requirements
Access to Distribution
Absolute cost advantage
Government Policy
Expected Retaliation
Summary
Bargaining Power of Buyers Degree of the Buyer Rating
Differentiation of outputs
Switching Costs
Presence of Substitutes
Company concentration relative to buyer concentration
Importance of volume to buyers
Cost relative to total buyer purchases
Impact of outputs on the cost of differentiation
Buyer information about supplier products
Buyer profitability
Decision makers incentives
Threat of backward integration
Summary
Bargaining Power of Suppliers Degree of Supplier Rating
Differentiation of inputs
Presence of substitute products
Supplier concentration relative to company concentration
Importance of volume to suppliers
Cost relative to total purchases in the company
Impact of inputs on costs or differentiation
Information about suppliers products
Supplier profitability
Decision makers incentives
Threat of forward integration
Summary
Threat of Substitute Products Extent of the Substitute Rating
Relative price performance of substitutes
Switching costs
Buyer propensity to substitute
Summary
Company Rivalries Existing Competition Rating
company growth rates
High fixed costs
Intermittent over capacity
Product differences
Brand identity
Switching costs
Informational complexity
Concentration & balance
Diversity of competitors
Corporate stakes
Exit barriers
Summary
(All Written in Essay Format)
Financial Analysis:
Current Ratio 2013 2014
Quick Ratio
Cash Ratio
Total Debt Ratio
Debt Equity Ratio
Times Interest Earned
Return on Equity
Return on Total Assets
Net Profit/Sales
Expense/Sales
Asset Turnover
Price Earnings Ratio
(All Written in Essay Format)
Matrixes Order – These go in the appendix section
External Factor Evaluation Matrix (EFE) Written Summary (2 pages)
Competitive Profile Matrix (CPM) Written Summary (2 pages)
Internal Factor Evaluation Matrix (IFE) Written Summary (2 pages)
Financial Ratio Analysis Matrix Written Summary (2 pages)
Attention: Make sure you have detailed written summaries to fully explain your matrixes.