Strategic Planning Process and Models

Just like planning to go for a trip on an unfamiliar journey, strategic planning is used in business organizations as a map to help establish ways to achieve the set goals. The process of strategic planning involves examining the strengths, weaknesses, opportunities, and threats of the organizations.Advertising We will write a custom assessment sample on Strategic Planning Process and Models specifically for you for only $16.05 $11/page Learn More After examining, a strategic plan for future operations is developed. For an organization to get to its desired destination in growth there has to be a strategic plan to help carve a path to follow. Strategic planning helps an organization to know where it intends to go over a specific period. This also maps-out how the organization intends to get there and helps to establish whether the organization achieves its goal in the end. Strategic planning is very different from a business planning. A strategic plan fo cuses on the whole business unlike a business plan that focuses on a precise agenda (Bradford and Duncan). A strategic plan is a living and dynamic process (Bradford and Duncan). Strategic planning models include the Michael Porter’s Five Forces, the Adrian Slywotzky’s Value Migration, and the W. Chan Kim and Renee Mauborgne’s Blue Ocean Strategy. Michael E. Porter from Harvard business school formed the porter’s five forces analysis in the late 1970s (Bradford and Duncan). Based on industrial organization economics, the five forces analysis focuses on the competitiveness and attractiveness of a market (Tracy). An attractive market therefore is one, which has high-level profitability while the opposite is true for an unattractive market. Of the five forces analysis, the first three are influenced by external competition while the remaining two are influenced by internal threats (Porter). Porter referred to his theory as the Porter’s Five Forces, â €˜micro environment’ (Porter).Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More These include factors that closely influence an organization’s ability to make profit and effectively serve its customers (Porter). Nonetheless, industry attractiveness does not really mean that all organizations in that market niche make an equal profit margin. Companies apply individual business models to enable them compete with the rest in the industry. Core competencies allow companies to achieve greater profit margins than the normal industrial average. The airline industry is a low profitability industry but individual organizations apply unique business strategies that enable them go above the industry average (Porter). The porter’s five forces entail three forces that are influenced by the horizontal competition (Porter). They include the threat of substitute products, the th reat from already established rivals, and the threat of new entrants (Porter). The remaining two forces on the hand are vertical completion. These are the bargaining power of the suppliers and the bargaining power of the customers (Porter). Below is a graphical representation of the porter’s five forces (Porter). Adrian Slywotzky’s Value Migration is shifting of value-creating forces (Slywotzky). The organization shifts to designs that satisfy the clients better. Concisely, it entails creating as much value as possible for the customer. This is achieved only by providing products and services that effectively satisfy the needs of the consumers. Value migration as described by Slywotzky is in three categories. They are, value flows between companies, value flows between companies, and value flows between business models within a company (Slywotzky).Advertising We will write a custom assessment sample on Strategic Planning Process and Models specifically for you for only $16.05 $11/page Learn More Value flows between industries may be shown by flows from hospitality to transport industry. Between companies, a good example is from Corel word perfect for Microsoft (Slywotzky). A good example of value flows between business designs would be from IBM mainframe computers to IBM PC’S with system integration (Slywotzky). With value migration, there are three stages involved and they are, value inflow stage, value stability stage, and value outflow stage. Value inflow is the value borrowed from other organizations or different industries. Value stability on the other hand is a situation where there is a competitive equilibrium. This means that the market share and the profit margins are at equilibrium. Lastly, the value outflow shows that the organization has lost its value in the industry through factors such as the outflow of talent and other vital resources (Slywotzky). The value chain is represented by all actions that add utility to the consumer and may be internal or external (Slywotzky). Monitoring the linkage between the value chain activities assures the organization of a harmonious chain. However, calculating or determining value is quite difficult considering that the consumers can only determine the value. This makes a value subjective (Slywotzky). To work around it, the relative market value of a firm is considered as the level of success of an organization in value creation. Blue Ocean Strategy is yet another widely used strategic planning model. A blue ocean is created when an organization comes up with value innovation that enhances the values of both the consumers and the company at the same time (Kim).Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In blue ocean strategy, competition is less imperative since it involves innovation of unexploited markets. Here the demand is created as opposed to the earlier described strategies where demand is sought after. This provides for unlimited opportunities for rapid growth and profitability (Kim). In view of the blue ocean strategic planning, competition based strategies are not sufficient for high performance sustenance (Kim). W. Chan Kim and Renee Mauborgne acknowledge that while competition based strategies are imperative, they are not sufficient (Kim). They argue that organizations have to go beyond competing to create their own market. This will help enhance growth and enable firms to realize new profits and opportunities for rapid growth. Their model is based in contrast with the environmental determinism view/ structural view. The determinism view assumes that industrial conditions are inevitable and that firms must find ways to compete with these conditions (Kim). They argue th at with such strategies, one organization’s gain is the other loss since in competition each firm tries to outdo the other. The blue ocean strategy is opposed to the normal capture and distribution of wealth. Rather, it supports the creation of wealth. This strategy focuses on restructuring the industrial structures and market boundaries to enhance value. This view is popularly referred to as the Reconstructionist view (Kim). Organizations in W. Chan Kim and Renee Mauborgne’s view must think outside the box and surpass the limitations of the industrial structures. This strategy assumes that out there is a large untapped demand. The only challenge is how to create the demand focusing on value innovation rather than competing (Kim). In this model therefore, competition is irrelevant (Kim). Through the expansion of the demand, there is a great deal of wealth creation, which creates a possibility for increased profits. The later model of strategic planning is of an innovat ive nature while the earlier discussed models are competitive in nature. That is the greatest difference between the blue ocean strategy and the other two. Works Cited Bradford and Duncan. Simplified Strategic Planning. Washington, DC: Chandler House, 2000. Print. Kim, Chan. Blue Ocean Strategy. Boston, MA: Harvard Business School Press, 2005. Print. Porter, Michael. The Five Competitive Forces That Shape Strategy. Boston, MA: Harvard business, 2008. Print. Slywotzky, Adrian. Value Migration: How to Think Several Moves Ahead of the Competition Hardcover. Boston, MA: Harvard Business School Press, 1996. Print. Tracy, Brian. The 100 Absolutely Unbreakable Laws of Business Success. San Franscisco, CA: Berrett, Koehler Publishers, 2000. Print. This assessment on Strategic Planning Process and Models was written and submitted by user Madripoor to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

The Segway was created to make everyday transporta Essays

The Segway was created to make everyday transporta Essays The Segway was created to make everyday transportation for people to become even easier and to replace automobiles. The Segway was first thought of in the early 90's by creator and inventor Dean Kamen. Kamen is the mastermind behind the IBOT Mobility system, the Auto S yringe, a portable dialysis machine, and many more inventions that have revolutionized the world we live in today, so it only made sense that he created something that would revolutionize travel. Kamen took on the task of manufacturing the Segway himself, giving himself a timeline of selling thousands per week, only to fall short of that goal by thousands. While the Segway product was a genius idea and thought by so many that it would change the world, another genius inventor didn't think so. Steve Jobs, the creator of Apple, sought to be the greatest inventor of his time. He wanted to reach new heights that people were only dreaming of, and he made sure he surpassed those heights. Steve Jobs told Kamen that his design was " not innovative, it's not elegant, it doesn't feel anthropomorphic. You have this incredibly innovative machine, but it looks very traditional. (Harvard,2003)" Kamen should have taken the advice of Steve Jobs, as we all know, Jobs was a marketing genius. He also told Kamen that he should slowly release the Segway, Jobs was supply and demand type of marketer. He would create a mass hysteria about his products and then when time came to release the product he would release an amount that would both satisfy the needs of the consumers and create a need for them as well. Steve Jobs said he is a "big ban g guy" which meant that instead of slowly incorporating his product into the market, he wanted to go all in and show the consumers they needed his product. In the early years of the Segways existence, it had a few setbacks which caused the sales of the unit to also be halted. In " 2003 there was a recall for the battery life of the device and its interference with the gyroscopic system in the device causing users to fall off, it wasn't a hard recall due to there only being about 6000 units "(Segway,2014) . However, " in 2006 there was another mass recall on the device, this time for 23,500 units switching randomly into reverse and causing riders to fall off "(Segway,2014) . These recalls were very bad for the reputation of the device, and could have led to many injuries and lawsuits for the company which would most likely have put them out of business. Kamen eventually ended up selling the company to Jimi Heselden , a millionaire out of Great Britain. Heselden never had the chance to change the market value in a good way for the Segway , he had actually lowered the reputation by falling off a cliff while riding the product. As a product manager working towards marketing and selling the Segway there are many things that could be done differently than they were done. The first thing that needs to be changed is the slow rollout process the company originally intended to roll out. A slow rollout would mean there is no mass need for the product but if you come out with the product in a bulk and create a marketing campaign to show consumers they need this product instead of just over looking it. Creating a supply and demand position would create more publicity for the product and create a bigger captivating need for the product, increasing sales once the product has another batch out. Another aspect as a product manager would be the price point, Segway was selling for a heavy price when it first came out, limiting the amount of people that could afford it with ease. Different price points would be created for different models on the Segway, with a different set of features and polishing points on t he higher priced items. With this adjustment, the market would be changed, and more sales would bring the company more profit. Giving out Segways to large companies to advertise would also serve as an advantageous aspect, making smaller companies want to

Intercultural Interview Essay Example | Topics and Well Written Essays - 500 words

Intercultural Interview - Essay Example He is from the Luo community of Kenya. In Luo community respect is a prime factor and is given high regards. Greetings always vary depending on the time of the day and it is in line that the younger ones should be the first to pose greetings to any elderly member. For example â€Å"Amosi† is a general greeting, while â€Å"Oyaore† is only for the morning. Among this community a child is never expected to defy instructions from any community member since it is believed that all children belong to the community (Sobania 68). All married women are expected to subject to their respective husbands and any defile of this is punishable under the council of elders known as â€Å"Buch Piny.† The young boys spend the nights in their small built huts called â€Å"Simba,† while the girls sleep with their parents in the main house. Any widow is to be inherited by a man from the community since there is no house without a male as they are the decision makers. Deaths are honored by rituals due to high respect for the dead (Shino 213-228). The women play a key role in ensuring that the family is well taken care of and that all the households are in order. On the other hand the man is in charge of providing for the needs of all family members. He is also a superior and has unchallenged powers. This likewise applies to social gatherings. The man gets the chance to make all decisions. Gatherings can be of different forms and this becomes a determinant of cites where they are held. In such places the talks are regulated and one is never allowed to mention some words in public. Some actions are also forbidden from public. These are known as â€Å"Kwero.† Omondi has been staying here for the past two years. It has been a big challenge for him because everything said and done appears contrary to what he knows and beliefs. He has fallen off with people severally and even forced to exempt himself from some situations. He faces a big challenge and does