Overview

Planning sets the organization’s direction; strategic analysis determines how to compete successfully. Managers translate mission and vision into goals, analyze the environment, and craft strategies that allocate resources for long‑term advantage.

Key Concepts and Tools

• Mission & Vision: Purpose and aspirational future state.
• Goal Hierarchy: Strategic (3–5 yr), tactical (1 yr), operational (daily/weekly).
• SMART Goals: Specific, Measurable, Achievable, Relevant, Time‑bound.
• SWOT Analysis: Internal strengths/weaknesses vs. external opportunities/threats.
• Porter’s Generic Strategies: Cost leadership, differentiation, focus.
• BCG Matrix: Stars, Cash Cows, Question Marks, Dogs—portfolio planning.
• Management by Objectives (MBO): Joint goal setting and review between managers and employees.
• Balanced Scorecard: Measures performance across finance, customer, internal process, and learning/growth.

Step‑by‑Step Example

Scenario: BeanWave, a regional coffee chain, is considering expanding into online subscription sales.

Step 1 – Mission Alignment: Mission = “Deliver specialty coffee experiences everywhere.” Online sales align.

Step 2 – SWOT Snapshot: Strength: strong roasting brand; Weakness: no e‑commerce skills; Opportunity: rising home‑brew market; Threat: shipping costs.

Step 3 – Goal Setting: SMART goal: “Generate $500 k subscription revenue in 12 months.”

Step 4 – Strategy Choice: Differentiation via single‑origin beans + sustainability story.

Step 5 – Action Plans: Hire e‑commerce manager, select 3PL, launch digital ads; track scorecard KPIs monthly.

Answer: Using SWOT, SMART goals, and a differentiation strategy guides BeanWave’s resource allocation and success metrics.

Quick Tip