Strategic Planning and Ten-Ten Planning
This chapter explains the nature of planning and the importance of analysis in creating differentiated products or services or higher levels of efficiency. Understanding the nature of strategic planning and the types of analysis used during the strategic planning process are important for operation managers.
Conclusion
In this chapter, we have reviewed many popular approaches for strategic planning. The key points are the following:
- The two basic strategies for business planning include product differentiation and striving to be the low-cost producer.
- Product differentiation can be accomplished by focusing on Midas versions of products using extravagant engineering and design. Being the low-cost producer can be accomplished by focusing on Hermes versions of products using frugal engineering and design.
- Planning approaches can be classified as having an internal organizational focus (looking inside) or an external or environmental focus (looking outside).
- The development of an abbreviated SWOT analysis that is supported with a strategy analysis can be used to integrate the key attributes of the various strategic planning approaches.
- The planning process never ends. With continuous pressure from market and competition, firms are suggested to develop new strategy and planning from time to time.
This chapter reviewed the various analytic
approaches for strategic planning. There is no single business plan that
can be used to deal with the complexity of monopolistic competition nor
is there a single planning approach that will take the organization
down the right path. A revised analysis tool, called quick SWOT
analysis, was introduced that combines the various strategic planning
approaches.
This chapter also sets the stage for the Ten–Ten
planning process, a simplified yet robust approach to planning. The next
chapter will present two templates for developing a business plan. The
first template is the Organizational and Industry Analysis template and
it incorporates the quick SWOT approach along with concepts from value
chain analysis, the resource-based approach, Blue Ocean market analysis,
and the other strategic analysis approaches discussed in this chapter.
This information is then used to fill in the Business Plan Overview
template. The use of the two templates is part of the Ten–Ten planning
process. The approach can be used to produce one plan and also to churn
out new plans in order to compete in dynamic environments characterized
by monopolistic competition.