STRATEGIC PLANNING
PRESENTED BY:-
HITEN AGGARWAL(12)
DEEPAM GUPTA(47)
NIKE
Nike's mission statement is “to bring inspiration and innovation to every athlete in the world.”
Nike, as a publicly traded company, has developed a robust global growth strategy outlined in its
strategic plan. Spanning a five-year period from 2021 to 2025, this plan encompasses 29 strategic
targets that reflect Nike's strong commitment to People, Planet, and Pay. Each priority is
meticulously defined, accompanied by tangible actions and measurable metrics. This meticulous
approach ensures transparency and alignment across the organization.
The strategic plan of Nike establishes clear objectives, including the promotion of pay equity, a
focus on education and professional development, and the fostering of business diversity and
inclusion. By prioritizing these areas, Nike aims to provide guidance and support to its diverse
workforce, fostering an environment that values and empowers its employees.
Strategic planning is an
organization's process of defining
its strategy or direction, and making
decisions on allocating its resources
to attain strategic goals. It is a
systematic process that commonly
embraces the definition of strategic
objectives, short, medium, and
long-term goals, and formulation of
policies to govern the acquisition,
use and disposition of resources to
attain those strategic goals.
Furthermore, it may also extend to
control mechanisms for guiding the
implementation of the strategy
STRATEGIES
1. Cost leadership strategy:
• Firms employing this strategy will combine low pro it margins per unit
with large sales
• volumes to maximize pro it. WalMart and Amazon are two companies
that have risen to the forefront by this strategy. Companies will seek the
best alternatives in manufacturing a good or offering a service and
advertise this value proposition to make it impossible for competitors to
replicate.
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• Differentiation Strategy: A differentiation strategy is one that involves
developing unique goods or services that are signi icantly different from
competitors. With this strategy, a name like Nike or Rolex automatically
assumes a status distinct and apart from all other shoes or watches.
Companies that employ this strategy must consistently invest in R&D to
maintain or improve the key product or service features.
• Innovative Strategy: Companies may move ahead of the competition by
doing things in new and different ways. Insight has created a way to
eliminate brain tumours and other cancers without cutting into the body.
Clearly, they gain a competitive edge over traditional surgeries by
reducing pain, risk, and long recovery time. People can gain a competitive
edge as they discover and offer innovative ways of doing things for the
company.
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• Operational Effectiveness
Strategy: Some companies just
do what they do better than
anyone else. FedEx started out
with an innovative strategy. But
it continued its leadership even
after dozens of other
companies jumped into the
overnight shipping business -
by doing it very well. For
individuals, this may mean
creating systems of operating
or new ways to analyse data
ADVANTAGES
• It identi ies the suitable strategies to achieve the goals.
• It creates standards and accountability.
• It improves awareness of the external and internal environments, and clearly
identi ies the competitive advantage.
• It helps in formulating better strategies using a logical, systematic approach.
• It increases managers' and employees commitment to achieving the
organisation’s objectives as they know what the company is doing and reasons
behind it.
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• It improves coordination of the activities and more ef icient allocation
of organisation’s resources.
• It makes best use of scarce resources to achieve maximum output.
• It provides better communication between managers of the different
levels and functional
• It reduces resistance to change by informing the employees of the
changes and the consequences of them.
• It increases dialogue and communication across all stages of the
process which strengthens employees' sense of effectiveness and
importance in the company's overall success.
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LIMITATIONS
• During strategic planning managers may develop sub-optimal goals and
plans rather framing risky strategies which they will not be able to achieve.
• Sometimes, short-term commitments also defer making long-term
strategies.
• Strategic planning requires huge amount of time, money, and energy.
Strategic planners or managers in organizations may be restricted by
these factors in making effective strategic plans.
• Even spending huge ine and money success is not guaranteed.
• The cost of engaging experts is huge and if desired results are not
achieved will result in huge inancial cost
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STEPS
• STEP 1: Where are we now?
• STEP 2: Where do we want to
get to?
• STEP 3: How are we going to
get there?
• STEP 4: How will we know
when we have got there?
STEP 1: Where are we now? - Situation analysis
• In this stage a manager establishes his present position - what we
sometimes refer to as "current reality." This should be an honest and realistic
assessment of one's position across key factors in the organisation generally
and in our part of the organisation speci ically; any dodging of issues or
avoidance of existing problems here will have a detrimental impact later.
• Organisation history
• Customer information
• Organisation pro ile
• Market information
• Employee feedback
• SWOT Analysis
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STEP 2: Where do we want to get to? - Future direction
• In a large organisation, there will almost certainly be an overall Vision,
often described in a Strategic Plan and supporting documents. It is also
necessary to consider the local situation - within the plan what do we
have to achieve in our area? Where do we need to get to?
• Vision
• Mission
• Aims and Objectives
STEP 3: How are we going to get there? - Strategy development
• This is the main thrust of strategic planning in which stakeholders collaborate to
formulate the steps or tactics necessary to attain a stated strategic objective. This
is especially important; it is carefully thought trough Route Map' to get us from
where we are now to our vision for the Future, This may involve creating
numerous short term tactical business plans that it into the overarching strategy.
STEP 4: How will we know when we have got there? - Monitoring & Evaluation
• This stage of the planning has to do with key measuring and monitoring aspects.
Once we have our journey plan, our Strategic Plan we need to set monitoring
points (often referred to as milestone' to check how things are going, assess how
well or otherwise we are performing against Plan. Thus, we schedule key review
points as part of an Action Plan.
• KPI’s - Key Performance Indicators.
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BUSINESS PLAN v/s STRATEGIC PLAN
• A business plan is a short-term document that outlines a company's daily
operations, inancial projections, and goals, while a strategic plan is a
long-term document that provides a roadmap for achieving a company's
goals and objectives
• A strategic plan is primarily used for implementing and managing the
strategic direction of an existing organization, whereas a business plan is
used to initially start a business, obtain funding or direct operations.
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• A strategic plan is focused on a business' mid to long-term goals, whereas
a business plan is focused on short to mid-term goals.
• In terms of time frame a strategic plan generally covers a period of 3 to 5+
years, whereas a business plan is normally no more than one year.
• A strategic plan is generally prepared by established businesses,
organizations and business owners that are serious about growing their
organizations, whereas a business plan could be prepared by new
businesses and entrepreneurs.
• A strategic plan is used to provide focus, direction, and action in order to
move the business unit from where they are now to where they want to
go. However, a business plan is used to provide a structure for ideas in
order to initially de ine the business.
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