StrategicPlanning

Strategic Mangement

Jorge A. Restrepo M

•On April 12, 1992, at the opening of
Disneyland Paris, a reporter told Walt
Disney's brother.

•Today is a bittersweet day, isn't it?
•Why did the brother answer?
•Because his brother Walt hasn't been able
to see his finished park
To which Walt Disney's brother responded:
•You didn't understand anything, my
brother saw this park long before any of us

It illuminates the critical role our minds play in physical performance and athletic excellence.
The advice in the book draws on Mack's work with professional athletes to give us the tools we need to achieve peak performance.

•Select it: The first step is to be clear about what you really want. Define your
goals and objectives in a specific and detailed way.
Project it: Vividly imagine what your life would be like once you've achieved what
you want. Visualize with all your senses, immerse yourself in that imaginary
reality.
Expect it: Cultivate an attitude of confidence and positive expectation. Firmly
believe that what you want is already on its way to you and maintain an attitude
of gratitude in advance.
Receive it: Open your mind and heart to receive what you have manifested. Be
on the lookout for opportunities and signs that lead you toward your goal and
take action when necessary.

Helen Hadsell
Won more than 5000 contests
The Luckiest Woman in the World
SPER

The famous painter Van Gogh used to say, “I dream my paintings, and then I paint my dream”

Connor McGregor has commented in several interviews on the intensity with which he imagined himself being world champion and the best in his category

Nicola Tesla in an interview said “I'm going to have to thank visualization for everything I've invented in my life”

Einstein: “Imagination is more powerful than knowledge.”

Masaru Emoto's experiment with water is known for its attempt to demonstrate
how emotions and intentions can physically affect the structure of water. Emoto
claimed that positive and negative emotions directed at water, whether through
words, thoughts, music, or even labels written on water containers, could change
the way ice crystals formed in water when it froze.

The typical procedure of these experiments was to expose water to different
influences, freeze it, and then examine the aesthetics of the ice crystals formed
under a microscope. Emoto and his followers submitted photographs of ice
crystals that they said showed significant changes. For example, they said that
crystals exposed to positive words such as "love" or "gratitude" formed beautiful
patterns, while those exposed to negative words or music considered negative
formed irregular patterns or did not form attractive crystals.

However, it is important to mention that the scientific community at large has
criticized and discredited these experiments for several reasons. The main
criticism is the lack of rigorous scientific controls and subjectivity in the
interpretation of the results. It has not been shown in replicable scientific studies that emotions or intentions can physically influence the molecular structure of water. In addition, the way crystal images are selected and interpreted leaves ample room for subjectivity and confirmation bias.

In short, although Emoto's experiments have captured the imagination of many
people and have been used in discussions of consciousness and metaphysics, from a scientific perspective, they lack validity and reproducibility.

Definition:
Strategic planning is a systematic and structured approach used by organizations to establish long-term goals, strategies, and policies. It is a process that involves the careful formulation of a long-term plan to guide the organization in achieving its objectives. This process is critical in defining the overall direction and decision-making framework for the organization. Here's a breakdown of how strategic planning functions as a
systematic process:

Fuente: https://www.stratgia.com/blog/el-proceso-de-planificacion-estrategica

Multiple Choice

What does mean strategic planning?

• Strategic planning does not require developing strategies
• Strategic planning involves setting goals, analyzing the internal and external environment, developing strategies, and implementing actions to achieve the desired outcomes.
• Strategic planning does not involve analyzing the environment
• Strategic planning is solely focused on short-term goals

1. Setting the Vision and Mission:

- Vision: Strategic planning starts with defining a clear vision statement. This statement describes the future state the organization aspires to achieve.

- Mission: The mission statement outlines the organization's core purpose and primary objectives, guiding daily operations and strategic decisions.

Multiple Choice

What is the mission of a company?

• The mission of a company is a statement that defines its employees' favorite purpose.

• The mission of a company is a statement that defines its preferred value proposition.

• The mission of a company is a statement that defines its purpose, values, and goals.

Definition:
2. Environmental Analysis:

- Internal Analysis: The organization evaluates its internal environment, including strengths and weaknesses. This often involves reviewing resources, capabilities, and current
performance (Matriz DOFA.)

- External Analysis: External factors such as market trends, competition, political, economic, social, and technological factors are analyzed. Tools like PESTEL analysis and
Porter's Five Forces are often used.

Multiple Choice

What does internal analysis mean?

• Evaluation of an organization's internal resources, capabilities, and competencies.
• Review of industry trends and competition
• Assessment of customer satisfaction levels
• External analysis of an organization's market environment

PESTEL ANALYSIS IS A
STRATEGIC TOOL USED TO EVALUATE THE EXTERNAL ENVIRONMENT OF AN ORGANIZATION

PESTEL: STANDS FOR POLITICAL, ENVIRONMENTAL, SOCIAL, TECHNOLOGICAL, ECONOMIC, AND LEGAL FACTORS

STEP 1: DEFINE THE

OBJECTIVE

START BY CLARIFYING WHY YOU ARE CONDUCTING THE PESTEL ANALYSIS

- IDENTIFY THE SPECIFIC
BUSINESS, PRODUCT, OR SERVICE YOU ARE ANALYZING

STEP 2: GATHER RELEVANT INFORMATION

- COLLECT DATA AND INFORMATION RELATED TO EACH PESTEL FACTOR

USE VARIOUS SOURCES LIKE NEWS ARTICLES,
INDUSTRY REPORTS,
MARKET RESEARCH, AND ACADEMIC JOURNALS

Step 3: Analyze Political Factors

- Consider how government policies, political stability, tax policies, trade restrictions and labor laws affect your business

- Look at the potential impact of elections, lobbying activities, and international political issues

Step 4: Examine Economic Factors

- Analyze the economic environment in which you operate

- Consider factors like economic growth, exchange rates, inflation rates, interest rates, disposable income of consumers, and unemployment rates

• Step 5: Assess Social Factors
Assess

•- Look at social and cultural aspects, including population demographics,
lifestyle changes, education levels, cultural trends, attitudes towards health
and environment, and consumer behaviors.
Social & Cultural

• Step 6: Evaluate Technological Factors
Evaluate

•- Consider the impact of emerging or existing technologies.
Impact

•- Look at aspects like R&D activity, automation, technological awareness,
and the rate of technological change.
Look at

• Step 7: Consider Environmental Factors
Environmental

•- Analyze ecological and environmental aspects that could affect your
business.
Analyze

•- Consider factors like climate change, environmental regulations, carbon
footprint, waste disposal, and sustainability practices.
Factors

Capitalize

- Consider how to capitalize on opportunities and mitigate potential threats.

Use Insights

- Use the insights gained to formulate strategies.

Develop Strategies

Step 10: Develop Strategies

Identify Factors

- Identify which factors represent opportunities or threats to your business.

Compile and

analyze - Compile and analyze the information gathered for each factor.

Analyze Findings

Step 9: Analyze Findings

Legislation - Look at current and upcoming legislation in areas like employment, health and safety, antitrust, and consumer protection.

Examine

- Examine legal factors that could impact the business.

Review

Step 8: Review Legal Factors

Step 11: Create an Action

Plan

- Develop a plan of action based on your strategies.

- Set goals and assign

responsibilities for

implementing the plan.

Step 12: Monitor and Update

- Continuously monitor the external environment

- Update your PESTEL analysis periodically to reflect changes in the external factors

​Remember, the effectiveness of a PESTEL analysis depends on the accuracy and relevance of the information you gather and how well you can translate this information into actionable strategies.

Ejemplo Estudio de Caso

•PESTEL analysis for a retail
company.
•We'll name this company
"Trendify," a mid-sized retailer
specializing in fashionable clothing
and accessories targeting young
adults.

• Objective
•To evaluate the external
environment for Trendify to inform
its strategic planning and
decision-making.

• Political Factors
•- Government Policies: The
government has recently reduced
import tariffs on clothing, which could lower Trendify's costs for importing foreign brands.

•- Political Stability: The country is experiencing stable political conditions, ensuring a predictable business environment.

•- Tax Policies: An increase in sales tax could potentially reduce consumer spending power.

• Economic Factors

•- Economic Growth: The economy is showing moderate growth, indicating potential for increased consumer spending.

•- Exchange Rates: A strong
domestic currency makes importing goods more cost-effective for Trendify.

•- Inflation Rate: Rising inflation may lead to higher operational costs and reduced consumer purchasing power.

• Social Factors
•- Demographics: There's a
growing population of young
adults, Trendify’s target
market.
•- Lifestyle Changes:
Increasing interest in
sustainable and ethical
fashion among young
consumers.
•- Health Consciousness:
Growing trend for fitness and
wellness apparel.

• Technological Factors

•- E-commerce Growth: Rapid growth in online shopping presents opportunities for expanding Trendify's online presence.
•- Social Media Influence: Social media trends heavily influence the purchasing decisions of Trendify's target market.
•- Emerging Technologies: Adoption of AI for personalized shopping experiences could enhance customer engagement.

• Environmental Factors
•- Sustainability Trends:
Increasing pressure to adopt
sustainable practices in
sourcing and packaging.
•- Climate Change: Changing weather patterns may influence clothing choices
and seasonal collections.
•- Regulations: Stricter
environmental regulations
may impact supply chain and production processes.

• Legal Factors
•- Employment Laws: Changes
in minimum wage laws could
increase operational costs.
•- Consumer Rights: Enhanced
consumer protection laws may
necessitate more transparent
marketing and return policies.
•- Data Protection:
Compliance with data
protection laws for Trendify’s
online store is essential.

• Analysis and Strategies

•- Political and Economic Opportunities:
Leverage reduced import tariffs to diversify product offerings. Plan for potential impacts of sales tax increase on pricing strategies.
•- Social and Technological Trends: Invest in sustainable product lines and enhance online shopping experience through technology.
•- Environmental Compliance: Adapt business practices to be more eco-friendly, aligning
with consumer expectations and regulations.
•- Legal Preparedness: Ensure compliance
with employment and consumer protection laws to avoid legal pitfalls.

• Action Plan
•- Product Diversification:
Introduce a sustainable
clothing line.
•- Online Expansion: Enhance
the e-commerce platform
with AI-driven
personalization.
•- Marketing Strategy: Utilize
social media influencers to
promote the brand and new
product lines.
•- Compliance Measures:
Conduct regular audits for
legal and environmental
compliance.

• Monitoring
•- Regularly review external factors for
changes that could impact Trendify’s
business.
•- Adjust strategies as needed to stay
aligned with the external environment.

•This example demonstrates how a
PESTEL analysis can help a retail
company like Trendify navigate its
external environment and inform
strategic decisions.

• Analysis and Strategies

•- Political and Economic
Opportunities: Leverage reduced
import tariffs to diversify product
offerings.
•Plan for potential impacts of sales
tax increase on pricing strategies.
•- Social and Technological Trends:
Invest in sustainable product lines
and enhance online shopping
experience through technology.
•- Environmental Compliance: Adapt business practices to be more eco-friendly, aligning with consumer expectations and regulations.
•- Legal Preparedness: Ensure
compliance with employment and
consumer protection laws to avoid
legal pitfalls.

•3. Goal Setting:
•- Long-term Goals: The
process involves setting clear,
long-term goals that are
aligned with the vision and
mission.
•These goals provide a
roadmap for what the
organization wants to achieve.

•- Short-term Objectives:
Breaking down long-term goals
into achievable, short-term
objectives.
•These are more specific,
measurable, attainable,
relevant, and time-bound.

4. Strategy Formulation:
- Developing Strategies:
Based on the analysis and
goals, the organization
develops strategies to
achieve its objectives.
This includes deciding on the allocation of resources and prioritizing actions.
- Contingency Planning:
Formulating alternative
plans to address potential
risks and uncertainties.

5. Implementation:

- Action Plans: Translating
strategies into actionable
plans and initiatives. This
involves assigning
responsibilities, setting
timelines, and determining
required resources.
- Change Management:
Implementing strategies often requires changes in
organizational structure,
culture, or operations.
Effective change management is essential.

6. Monitoring and Evaluation:

- Performance
Measurement: Regularly
monitoring progress against the set objectives and key performance indicators (KPIs).

- Adaptation and Feedback:
The strategic plan is not
static; it requires continuous
evaluation and adjustments based on feedback and changing conditions.

7.

Communication

and

Alignment:
- Internal Communication:
Ensuring all stakeholders
within the organization
understand and are aligned
with the strategic plan.
- Engagement and Culture:
Fostering a culture that
supports the strategic
objectives and encouraging
engagement across all levels
of the organization.

In summary, strategic
planning is a comprehensive
process that enables
organizations to set a clear
direction, make informed
decisions, and adapt to
changing environments.
It's about aligning the
organization's resources and
actions with its mission and
vision, ensuring long-term
success and sustainability.

- Differences Between Strategic, Tactical,
and Operational Planning: Clarify the different scopes, timeframes, and objectives of each planning type.

Strategic, tactical, and operational planning are three distinct types of planning that serve different purposes within an organization. Each type has its own scope, timeframe, and objectives, and they are interconnected to ensure the effective and efficient achievement of organizational goals. Understanding the differences between them is crucial for successful organizational management.

•1. Strategic Planning:
•- Scope: Strategic planning is
the broadest form of planning
and deals with long-term goals
and the overall direction of the
organization.
It focuses on the organization's position in the market, its competitiveness, and how it can grow and sustain itself over time.
•- Timeframe: The timeframe
for strategic planning is typically long-term, usually spanning 3 to 5 years, and sometimes even longer.

•1. Strategic Planning:
- Objectives: The main
objective of strategic
planning is to set a vision
and direction for the
organization. It involves
defining the organization's
mission, vision, core
values, and setting
long-term goals. Strategic
planning requires
high-level decision-making
and often involves top
executives and board
members.

•2. Tactical Planning:
•- Scope: Tactical
planning is more specific
and focuses on the tactics
and actions required to
achieve the strategic goals
set by the organization. It
bridges the gap between
strategic and operational
planning.

•- Timeframe: The
timeframe for tactical
planning is medium-term,
typically covering 1 to 2
years.

•2. Tactical Planning:
•- Objectives: Tactical planning involves developing specific strategies and plans to achieve the strategic goals. It outlines the specific tactics, resources allocation, and initiatives required. Middle managers are often responsible for tactical planning as they translate strategic goals into actionable
plans.

•3. Operational Planning:
•- Scope: Operational planning is the most detailed and concrete form of planning. It focuses on the day-to-day execution of tactical plans and routine functions of the organization.
•- Timeframe: Operational planning is short-term, usually covering up to a year. It often involves creating plans for a fiscal year.

•- Objectives: The objective of operational planning is to execute the tactical plans effectively. It involves setting operational goals, defining daily workflows, allocating resources, and managing the daily operations of the organization.
Operational planning is typically handled by lower-level managers and supervisors who oversee the execution of plans at the departmental or team level.

•In essence, strategic planning sets the direction, tactical planning defines how to get there, and operational planning ensures the daily activities are aligned with those plans. Each type of planning is crucial and serves its purpose in helping an organization navigate towards its long-term vision and goals.