Strategic planning

Note the related topics Strategic Management and Strategic Planning ( Account Planning )

Under strategy be understood in the classical economy (mostly long term) planned corporate behavior to achieve its objectives. In this sense, shows the company's strategy in the corporate governance, the way in which a medium-term ( 2-4 years) or long term ( 4-8 years) corporate goal is to be achieved. This classic definition of strategy is criticized today, mainly due to its adoption of predictability. Explains why it has undergone several enhancements, such as by Henry Mintzberg. However, a homogeneous conception of strategy is not prevalent in the scientific literature.

In connection with the corporate strategy is often spoken of the upstream concepts of vision and mission statement, as well as strategic management. When are downstream sub-strategies ( marketing strategy, financial strategy, etc.) and tactical (medium-term ) and operational (short-term ) level considered.

• 5.1 Corporate Strategies
• 5.2 Microeconomics 5.2.1 Investment Strategies

Extended Definition

Even Michael E. Porter will move slightly away from the concept of predictability. For it is not long-term planning relevant, but the ability to develop on the basis of a longer-term approach to a competitive advantage, based on clear distinctive features.

Henry Mintzberg is in addition to the rational planning of strategies yet explicitly the possibility of emergent strategies that were nowhere written down, but have evolved from the company out. In his view, a strategy has five semantic contents, which all play a role in the strategic management:

• Plan ( intended action ),
• Ploy ( maneuver / List for the purpose of conquering an enemy )
• Pattern ( contradiction -free behavior patterns)
• Position ( positioning of an organization in its environment) and
• Perspective ( vision and interpretation of the world).

Werner Kirsch distinguishes between similarly worded (ie written down ) and, formed into (ie, arising from self - ) strategy. For him, every strategy is by definition a strategy was formed with a strong evolutionary character. Formulations are only part of it that attempts to rational- controlling intervene. A similar attitude can be found already at Harry Igor Ansoff, when he speaks of " planned learning". Strategically is something that affects the capabilities of the company in a significant way for cherry.

Hans H. Huber background refers to the definition of Moltke, after which strategy " the training of senior originally thought according to the ratios always changing " is. The leading idea of a business is the acquisition and assertion of a strong market position by using clearly defined, observable and lasting competitive advantages. A strategy thus implies that a certain desired target position by a series of consistent decisions are made at the right time, can be achieved.

Planned and emergent strategies

Henry Mintzberg defines strategy as repeated

" A pattern in a stream of decisions engl:. a pattern in a stream of decisions "

The Classic Strategy

That is, Mintzberg point for the classic strategy two conditions: First, a plan (intended strategy ) must exist which, secondly, fully translated into action ( Realized strategy ). So no part of the strategy remains unrealized, no additional activities are necessary.

The Entrepreneurial Strategy

Once a part of the conditions - the exact plan - is relaxed, the classic definition is already at the end and does not help. Mintzberg is based on a well-understood vision of (ie not a detailed plan, but a good idea where it goes ) and calls the resulting decision-making patterns entrepreneurial strategy, as is typical in small, young, led by a central figure in the company.

Changed in this case, the environment, eg, the desired goal is unreachable, or it provides an exceptionally good opportunity, then it may happen that the original goal dropped and a new target is sought. It is this flexibility which characterizes the entrepreneurial strategy: it is not explicit and therefore easy to change. An explicit strategy binds an organization psychologically to the definition, even if they represent a disadvantage. Mintzberg is the basis of a paper by C. H. Kiesler (1971).

Can now be referred to as a planned strategy, the business strategy? Mintzberg decides in the affirmative. The pattern of decisions is deliberately aimed at a specific target.

The Ideological Strategy

When many people share a common vision within an organization and identify with this, such as when a strong leadership figure has left the organization, then one can speak of an ideological strategy. Here is a synchronization of the decision by the same thought patterns takes place, so that you can refer to the ideological strategy as deliberate strategy. Because a group will be change worse than the will of a single person, it is even more difficult to achieve under certain circumstances a change in the strategic decision-making patterns in the ideological strategy than in other types of strategies.

The umbrella strategy

Now Mintzberg relaxes the condition of absolute control ( bureaucratic, personally or ideologically ) - ie the central decision-makers can not directly enforce strategic decisions. Leader in such organizations often design a type (rain) umbrella of policies, rules, stipulations, etc., within which to move the players in the organization. This strategy form is called Mintzberg screen strategy. Decisions are therefore unable to meet the exact same direction, but "move in a given frame ."

Mintzberg describes shielding strategies as a very common form of strategic control, and attributes this to the uncontrollable environment that can affect almost any strategic plan. The then necessary adjustments to changing conditions are normally carried out by many people simultaneously. Because of the complexity of a non-controllable task that can only be efforts to address by precaution guidelines were set, how to deal with problems.

Mintzberg also describes the ways that an organization has when one of the players moved out of the scope of the guidelines. In this case, Mintzberg believes the organization has the ability to a) stop, b ) ignore ( to adjust with the intention to observe the result) and c ) the strategy so that the action is covered. He used the umbrella metaphor: If an arm is wet, then you can withdraw the arm can still be wet or move the screen so that the arm is back under the screen.

The process strategy

Much like the umbrella strategy, we find out what Mintzberg called with process strategy (process strategy ). Again we are dealing with organizations where the actors must have considerable decision-making freedoms. But instead of creating complicated rules about the content of strategy, choose the primary decision makers in a different way. They influence the process of strategy development and leave the contents of the other strategies. This is done by the people who decide the content of the strategy selected by the central decision-makers, for example. This type of strategy, we frequently find in divisionalised organizations in which a centralized headquarters appoints the Division Manager, the then responsible usually develop ( reasons stated above ) planned strategies. Note: scheduling means as introduced by the BCG portfolio analysis bring these strategies into the back area of screen strategies.

The unconnected strategy

The unconnected strategy ( unconnected strategy ) is perhaps the most straightforward of all. In one part of a large organization there is so much discretion that this part of the organization simply can pursue its own strategy. This happens in the highly complex environment of expert organizations ( eg, some consultancies ), where an expert can by virtue of its powers to pursue a completely new direction.

The consensus strategy

In other words, the convergence is not caused by the will of a central administration, or the common will of the actors, but by the random development of the activities. Of course, individual actors are promoting consensus or even negotiate to the effect. The essential point is that the strategy arises from activities and not intentions.

The Imposed strategy

As a final strategy form is called Mintzberg the forced strategy ( strategy imposed ). It is caused by completely give up control of the environment and environmental forces the organization to activities. It is easy to imagine that a single person or other organization has such a huge impact on an organization that this behaves (eg waste water passes through a water treatment plant, followed a women's quota or working hours reduced) in a certain way.

Mintzberg's conclusions

Finally, results from Mintzberg, that there is probably no purely externally controlled strategy, just as little as there are purely planned strategies. Strategies are in a sliding continuum between purely planned and emergent strategies completely. This finding is significantly more sophisticated than the previous dichotomy separated the two untenable and irreconcilable viewpoints. Only if there is a proportion of emergent strategy, argues Mintzberg, there may be strategic learning, since in the "classical" strategy, the plan will only be implemented and changes are not possible.

Mintzberg calls that the process of strategy development needs to be more become the focus of attention, to complement the extensive results on the content of strategy.

He concludes his remarks with the following observation from:

" Our conclusion is that strategy goes hand in hand on two legs - one intentional and the other emergent. Our conclusion is did strategy formation walks on two feet, one deliberate, the other emergent. "

The relative weight may be moved from time to time from one to the other side, but not the need for both sides of this phenomenon to light.

Strategic planning and control

Strategic planning is not a one-time act in a company, but is a multi-step, time and again softly tender process. The general action orientation to flow according to the ideal of the fundamental business objectives and strategic program. The strategic plan to determine on which markets which products a company is to be active and how the competition will be contested.

So while the Strategic Planning intends to set out the basic framework for key corporate decisions, the operational planning from it to gain a concrete taking into account the strategic objectives orientation for daily activities. The operational plan creates an orientation framework for daily, weekly and monthly activities. An operational plan includes, for example, the machine utilization in the coming weeks, sets the maintenance periods as the plant, linked to the flow of materials to the production program, etc.

Strategic planning may well have short-term nature, without in the least to be an operational plan. Consider the purchase of a corporate participation that was offered surprisingly, or the dramatic reversal of resources ( Turn around ) to cope with a crisis occurred. It is therefore more useful to distinguish between the planning of the case, ie, between the strategic and the operational level and, separately, according to the time horizon.

In many companies, is - the idea of ​​hierarchy following - the strategic planning focus at the upper levels of management, the operational planning focus, however, on the lower levels of the hierarchy. However, other patterns are possible. Frequently strategic reorientations are based on suggestions from the base, and not infrequently the operational planning for business success is so important that no board would give up its direct involvement in it.

Because planning is a very selective control technology, they should be supplemented with measures that can compensate for the selection risk at least partially. This compensation object takes classic, the management control function (although this task could be performed by other management functions ). Therefore, it is expedient abzuhandeln planning and control together.

Characteristics of the corporate strategy

• Strategies specify the / activity box / he or the domain of the company.
• Strategies are competitive basis, ie they determine the action program in relation to competitors, eg in the form of imitation, cooperation, dominance, or circumvent
• Strategies refer to the environmental situations and developments, opportunities and risks. They respond to external changes and / or try them active in their own sense of influence
• Strategies refer to the resources of the company, on the strengths and weaknesses in their position relative to the competition
• Strategies reflect the central attitudes, desires and values ​​of the specific decision
• Strategies are directed at the whole business, not only on individual functional areas
• Strategies are very important for the net assets and results of operations of an enterprise and far-reaching consequences in terms of resource requirements; are big decisions
• Strategies are forward-looking, they are based on expectations about the development of their own competencies and environmental conditions
• Strategies may, but need not, be the result of a systematic planning process.
• Strategies require for their successful implementation, the formulation of action plans for the affected functional areas.
• Strategy should not be understood as a result, but as a process

Concrete strategies

Corporate strategies

• Bottleneck Concentrated strategy
• Management Strategy Delphi strategy

• Penetration strategy
• Harvesting strategy

Microeconomics

In microeconomics, it is assumed that strategy for companies is to achieve and retain a position in which a producer surplus is generated.

Investment strategies

An investment strategy is the strategy of buying and selling of stocks, bonds, options, certificates, etc.

There are usually three different types of plant, these are also intrinsically linked with the investment horizon, ie the planned duration of the actual investments:

The speculative types, the medium-term investors, and the conservative type of investor.

A low-risk investment strategy might be as follows:

• Share risks between various papers, a form of investment. ( Diversification of investments )
• Risks to various forms of investment spread ( yield rich and insecure and weaker and safer forms of investment ).
• Share risks between various economic sectors / nations.

Political economic strategies

Political- economic strategies are created to States for planning and goal setting in terms of its economic performance. An example is the five-year plan or the Lisbon Strategy of the European Union.