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Unit 2: Strategic Planning

The vision statement is the owner’s view of where the enterprise should be in the future. The Notes
Vision statement is stated in general terms on key measures of importance. The vision includes
selective items such as sales volume, market share, market penetration, earnings, customer
satisfaction, research and development investment, and relationships with strategic partners.
Statements on cost position relative to competitors and productivity or efficiency are also
appropriate for the key measurement items discussed in the vision statement. Following is an
example of a vision statement:

Example: To be the market leader and the low cost distributor of high quality automotive
parts in the Ohio and Indiana market. The right material, to the right place, at the right time, for
each customer! At a price delivering value for the customer and a fair return for the company.
Each of the vision items add value only if it has been identified as clearly important to the
defined outcome and results of the business as defined by the owner and by the expectations and
demands of the market.
While the mission and vision statements are products of the owners or the stockholders they
provide important defining parameters for the key managers as they develop a strategic plan.
Each of the elements of the strategic plan must be in agreement with and aligned to the mission
and vision statements of the business.
The next step in analysing the current situation is the development of Baseline Feedback. This is
the collection and compilation of both the internal and external data that can help to define the
current situation. The external data includes market, economic and competitive intelligence,
customer and supplier information, and benchmark data from both inside and outside of the
directly competitive industry.
The final exercise in the current situation analysis is to measure and gain perspective on the
degree of convergence or misalignment of employee perception and opinion of the company
mission, visions and strategy. It is very important that each and every employee have a consistent
mind set relative to the mission, vision, and strategy of the company.

Have each employee or at least the key managers write his or her own statement of company
mission and vision. Compare those employee statements to the official version and see if there
is any significant divergence of position. It is that alignment which allows for consistency in
decision-making and in execution.

In addition, develop an understanding of customer perspective and opinion of the company.
Ask the question for example, how do the most profitable customers view the company versus
the views of the least profitable customers? How do the same customers view the key
competitors? What products or product lines represent the greatest and least profit contribution
and why?
A good tool to use is a simple eight to ten question survey. Have each key manager complete the
survey. This will provide a measurement of the degree to which there is common and clear
understanding of the current situation, the direction, decision-making and decision processing
in the company.
Agreement throughout the organisation is a fundamental requirement for optimisation of the
results. If the analysis in this stops shows divergence then work to narrow the gaps prior to
undertaking strategic planning. If there is considerable agreement then there is a strong platform
from which to build a strategic plan with high probability of real long-term benefit. A parallel
process of using a simple questionnaire outside of the company with customers and suppliers is
also recommended and it too can be of real value in the strategic planning and development
process.

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