Strategic Planning

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Strategic Planning by Mind Map: Strategic Planning

1. Definition

1.1. Determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization

1.2. The process of determining a company's long-term goals and then identifying the best approach for achieving those goals

1.3. Systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them

2. Scope

2.1. Defines future goals of a company

2.2. Set's objectives and strategies

2.3. Follow's the mission statement

3. Steps

3.1. Defining the company's mission & objectives

3.2. Environmental scanning

3.3. SWOT

3.4. Strategy formulation

3.5. Strategy implementaion

3.6. Evaluation & control

4. 3 Functional Areas

4.1. Marketing: Competitive Research and Advertising are an important aspect of strategic planning. In SiriusXM's case they needed to compete with Pandora by advertising to a new market segment

4.2. Accounting: Analyzing financial statements determines a company's strengths and weaknesses. Strategies are directly linked to a company's financials

4.3. Human Resources: Creating long term success involves having the right employees to meet a company's needs

5. 3 Case Examples

5.1. Jet Blue

5.1.1. "Customer Bill of Rights" to regain customer loyalty after an incident that left passengers on board for hours

5.2. Gap

5.2.1. Global expansion in Southeast Asia

5.3. SiriusXM

5.3.1. Gain 37% interest in Sirius Canada and Canadian Satellite Radio Holdings through a stock to stock transaction

6. MFT Review Module

6.1. Net Income: states the profitability of a company. it is important in strategic planning because a company needs to be profitable in order to build towards long term success

6.2. Budgeting: it is used for planning and control and in order to build strategies a company needs to know the associated revenues and expenses that will go along with it. Budgeting lays out the finances involved in the new strategies.

6.3. Capital Budgeting: The process of planning expenditures on assets whose cash flows are expected to extend beyond one year. The effects of capital budgeting will greatly affect the Balance Sheet as companies consider purchasing new assets. Strategic planning can involve the purchasing of new assets and capital budgeting is essential in this process

6.4. Organizational Structure: determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management

6.5. Supply Chain Management: is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Strong SCM can help lower costs and create better processes.

7. My Title: Future Entrepreneur

8. A company's strategic plan should come together like a jig saw puzzle. Every aspect of a strategic plan needs to properly relate to one another in order for it to be pieced together properly