Strategic Business Planning for Commercial Producers

How Can the Business Be Positioned Through Strategic Thinking?

Strategic Business Planning for Commercial Producers

Overview

• Strategic management• Your own strategic direction• Tools for analyzing strategic

direction• Determining strategic

alternatives

Strategic Business Planning for Commercial Producers

What is strategic management?

Strategic management is all about anticipating, driving, and capitalizing on change:– Anticipating: seeing the future– Driving: shaping the future– Capitalizing: making the most of the

future

Strategic Business Planning for Commercial Producers

What is strategic management?

“If it ain’t broke...Don’t fix it.”

“If it ain’t broke...You haven’t looked hard enough.

Fix it anyway!”

Tom PetersThriving on

Chaos

Strategic Business Planning for Commercial Producers

What is strategic management?

In any strategic planning process, we must answer three key questions:– Where are we now?– Where are we going?– How will we get there?

Strategic Business Planning for Commercial Producers

The Performance Gap

Time

Gap

Goal

Current Path

TODAY

Ou

tcom

e

Strategic Business Planning for Commercial Producers

How do we close the gap?• Define our current position ....

– with respect to customer needs, competitors, the general market situation

• Determine our goal ....– where should our firm be in 5, 10, …, years?

• Evaluate our firm and our market ….– Strengths, Weaknesses, Opportunities, Threats

• Start down the path that will lead to our goal– short - long-term action steps to move

toward our target

Strategic Business Planning for Commercial Producers

What is strategy?

– Operational effectiveness versus

strategy

– What is operational effectiveness?

Strategic Business Planning for Commercial Producers

What is strategy?• “Competitive strategy is about being

different.”• “Strategy is the creation of a unique and

valuable position in your industry.”• “Activities are the basic units of competitive

advantage.”– “Strategy is about combining activities.”– “Strategy is about creating fit among a

company’s activities.”

• “Strategy is choosing what not to do.”

Strategic Business Planning for Commercial Producers

What is strategy?

• Strategy is….– Looking longer term– Capitalizing on change– A stream of decisions– Focused on a purpose– Managing strategic risks– Creating a unique and valuable position– Choosing what not to do

Strategic Business Planning for Commercial Producers

The Strategic Management Process

Assessing the Situation

YourFirm

Vision

Strengths

Competitors

Mission

Objectives

MarketConditions

Goals

Customers

Opportunities Threats

Weaknesses

StrategyImplementation

CoreStrategy

FunctionalStrategies

Product Marketing

Volume Resources

Purchasing Finance

People Organization

Social

OperationsManagement

The Strategic Management Process

Strategic Business Planning for Commercial Producers

Strategic Business Planning for Commercial Producers