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Strategic Planning Model Critical Success Factor: Strategic Innovation

Strategic Planning Model Critical Success Factor: Strategic Innovation. Environmental Strategic Strategic Execution Analysis Formulation Implementation & Control S trengths Mission Budgets Monitor

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Strategic Planning Model Critical Success Factor: Strategic Innovation

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  1. Strategic Planning ModelCritical Success Factor: Strategic Innovation Environmental Strategic Strategic Execution Analysis Formulation Implementation & Control S trengths Mission Budgets Monitor W eaknesses Objectives Programs Feedback O pportunities STRATEGY Procedures T hreats Organizational Structure Policy Guidelines

  2. Life Cycle and Competitive Advantage Introduction Growth Maturity Decline R&D Improve product Focus on Cost Control Tech change Econ of scale Standardize Reduce capacity Attention to Process improve Efficiency Cut products quality Distribution Costs cuts Design change Value added Few changes Process change Forecasting Optimal capacity Creating a Sustainable Competitive Advantage (David A. Aaker, 1989) Stage of the Product Life Cycle, Business Strategy, and Business Performance (Anderson & Zeithaml, 1984)

  3. Competitive Forces Shape Strategy How Competitive Forces Shape Strategy:“By being aware of competitive forces, an organization can position itself to be less vulnerable to attack” (Michael E. Porter, 1979)

  4. Competitive Forces Shape Strategy Porter’s 5 Forces Model Threat of New Entrants Bargaining Industry Bargaining Power of Competitive Power of Suppliers Rivalry Customers Threat of Substitutes

  5. Strategic Planning Airline Industry Industry Example: United Airlines (Incorporated 1931) 1997 Strategy Based on Global Growth 1998 Aircraft fleet expansion (639 planned aircraft by 2001) 2001 Failed attempt to buy US Airways Dec 2002 United files for Ch. 11 federal bankruptcy protection * According to Air Transport Association, 127 airlines have filed for bankruptcy since 1978 (ATA, 2005)

  6. Strategies for SurvivalStrategic Innovation Differentiation (RCA used its R&D strength and its organizational structure to market successfully Color TV) Transformation: From ordinary to revolutionary Low Cost (Southwest Airlines strives to recruit and train the best personnel available, create innovative flight schedules, stress strong customer support, and provide high pay for employees) Transformation: From in-state service to national to?

  7. Strategies for SurvivalStrategic Innovation Response (FedEx uses a hub-and-spoke system to rapidly respond to request for package shipments worldwide) Transformation: From national letter carrier to global cargo carrier Diversification (Boeing reacts to the maturing airframe market) Transformation: From an airplane builder to a high-tech product and service provider

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